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Valero Energy Corp. (NYSE:VLO)

This company has been moved to the archive! The financial data has not been updated since October 30, 2024.

Common-Size Income Statement

Valero Energy Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenues, includes excise taxes on sales by certain of foreign operations 100.00 100.00 100.00 100.00 100.00
Cost of materials and other -85.02 -85.48 -90.12 -90.79 -89.06
Lower of cost or market (LCM) inventory valuation adjustment 0.00 0.00 0.00 0.03 0.00
Operating expenses, excluding depreciation and amortization expense -4.21 -3.62 -5.07 -6.83 -4.49
Depreciation and amortization expense -1.84 -1.38 -2.07 -3.55 -2.03
Cost of sales -91.07% -90.48% -97.25% -101.14% -95.59%
Gross profit (loss) 8.93% 9.52% 2.75% -1.14% 4.41%
Asset impairment loss 0.00 -0.03 0.00 0.00 0.00
Other operating expenses -0.02 -0.04 -0.08 -0.05 -0.02
General and administrative expenses, excluding depreciation and amortization expense -0.69 -0.53 -0.76 -1.16 -0.80
Depreciation and amortization expense -0.03 -0.03 -0.04 -0.07 -0.05
Operating income (loss) 8.19% 8.90% 1.87% -2.43% 3.54%
Other income, net 0.35 0.10 0.01 0.20 0.10
Interest and debt expense, net of capitalized interest -0.41 -0.32 -0.53 -0.87 -0.42
Income (loss) before income tax (expense) benefit 8.13% 8.68% 1.35% -3.10% 3.22%
Income tax (expense) benefit -1.81 -1.94 -0.22 1.39 -0.65
Net income (loss) 6.32% 6.73% 1.13% -1.71% 2.57%
Net income attributable to noncontrolling interests -0.22 -0.20 -0.31 -0.48 -0.33
Net income (loss) attributable to Valero Energy Corporation stockholders 6.10% 6.54% 0.82% -2.19% 2.24%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The financial performance from 2019 to 2023 is characterized by significant volatility, with a notable contraction in 2020 followed by a substantial expansion of margins in 2022 and 2023. The common-size analysis reveals a strong recovery in profitability, driven primarily by a reduction in the relative cost of materials and improved operating leverage.

Cost Structure and Gross Profitability
A significant fluctuation in the cost of materials and other expenses is observed, peaking at 90.79% of revenues in 2020 before declining to 85.02% by 2023. This shift directly influenced the gross profit margin, which moved from a deficit of -1.14% in 2020 to a peak of 9.52% in 2022, eventually settling at 8.93% in 2023. The data indicates that the company successfully lowered its relative cost of sales from a peak of 101.14% in 2020 to approximately 91.07% in 2023.
Operating Expense Efficiency
Operating expenses, excluding depreciation and amortization, showed a peak relative to revenue in 2020 at 6.83%, followed by a downward trend to 4.21% in 2023. Depreciation and amortization expense as a percentage of revenue also peaked in 2020 at 3.55% and decreased to 1.84% by 2023. This reduction in operating overhead contributed to a marked improvement in operating income, which rose from -2.43% in 2020 to 8.19% in 2023.
Financial Leverage and Non-Operating Items
Interest and debt expenses remained relatively low as a percentage of revenue throughout the period, though a peak of 0.87% was recorded in 2020. Other income, net, remained marginal but showed a slight upward trend, reaching 0.35% of revenues in 2023. These factors suggest that non-operating costs did not significantly impede the recovery of the bottom line.
Net Profitability and Tax Impact
The net income attributable to stockholders experienced a sharp reversal from a loss of -2.19% in 2020 to a gain of 6.54% in 2022, ending the period at 6.10% in 2023. This expansion was mirrored in the income before tax, which rose from -3.10% in 2020 to 8.13% in 2023. The impact of income taxes shifted from a benefit of 1.39% of revenues in 2020 to an expense of 1.81% in 2023, consistent with the return to profitability.

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