Stock Analysis on Net
Stock Analysis on Net

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 
Quarterly Data

Valero Energy Corp., common-size consolidated income statement (quarterly data)

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3 months ended: Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Revenues, includes excise taxes on sales by certain of foreign operations 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of materials and other -91.15 -89.72 -87.16 -88.29 -84.33 -85.28 -82.34 -83.39 -85.63 -83.16 -90.68 -88.71 -90.19 -90.99 -91.28 -90.95 -93.62 -87.32 -90.27 -86.37 -89.31 -90.15 -90.58
Lower of cost or market (LCM) inventory valuation adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.98 21.62 -11.50 0.00 0.00 0.00 0.00
Operating expenses, excluding depreciation and amortization expense -4.51 -4.13 -4.44 -4.50 -4.11 -4.17 -4.05 -3.92 -3.93 -3.15 -3.58 -4.34 -4.57 -4.38 -7.96 -7.03 -7.07 -9.88 -5.09 -4.44 -4.55 -4.06 -5.01
Depreciation and amortization expense -2.05 -1.98 -2.15 -1.92 -1.75 -1.91 -1.78 -1.49 -1.40 -1.14 -1.54 -1.63 -2.13 -2.08 -2.72 -3.41 -3.81 -5.44 -2.57 -2.00 -2.04 -1.91 -2.21
Cost of sales -97.71% -95.83% -93.76% -94.71% -90.18% -91.36% -88.18% -88.80% -90.95% -87.45% -95.80% -94.68% -96.89% -97.44% -101.96% -101.39% -102.52% -81.02% -109.43% -92.82% -95.89% -96.12% -97.80%
Gross profit (loss) 2.29% 4.17% 6.24% 5.29% 9.82% 8.64% 11.82% 11.20% 9.05% 12.55% 4.20% 5.32% 3.11% 2.56% -1.96% -1.39% -2.52% 18.98% -9.43% 7.18% 4.11% 3.88% 2.20%
Asset impairment loss 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other operating expenses -0.01 -0.01 -0.11 -0.04 -0.02 -0.01 -0.03 -0.06 -0.01 -0.03 -0.05 -0.05 -0.06 -0.04 -0.18 -0.03 -0.16 -0.03 -0.01 -0.03 -0.04 -0.01 -0.01
General and administrative expenses, excluding depreciation and amortization expense -0.71 -0.59 -0.81 -0.83 -0.65 -0.61 -0.67 -0.68 -0.48 -0.45 -0.53 -0.80 -0.66 -0.63 -1.00 -1.35 -1.18 -1.63 -0.80 -0.87 -0.80 -0.69 -0.86
Depreciation and amortization expense -0.03 -0.03 -0.04 -0.03 -0.03 -0.03 -0.03 -0.03 -0.02 -0.02 -0.03 -0.03 -0.04 -0.04 -0.06 -0.07 -0.08 -0.12 -0.06 -0.05 -0.04 -0.05 -0.06
Operating income (loss) 1.54% 3.54% 5.29% 4.39% 9.12% 8.00% 11.10% 10.29% 8.53% 12.04% 3.59% 4.44% 2.35% 1.83% -3.20% -2.83% -3.93% 17.21% -10.30% 6.24% 3.23% 3.14% 1.27%
Other income (expense), net 0.37 0.35 0.45 0.41 0.32 0.31 0.35 0.22 0.17 0.06 -0.05 -0.45 0.11 0.37 0.22 0.15 0.30 0.26 0.14 0.13 0.12 0.04 0.09
Interest and debt expense, net of capitalized interest -0.43 -0.41 -0.44 -0.42 -0.39 -0.43 -0.40 -0.33 -0.31 -0.27 -0.38 -0.42 -0.51 -0.54 -0.72 -0.92 -0.90 -1.37 -0.57 -0.43 -0.41 -0.39 -0.46
Income (loss) before income tax (expense) benefit 1.49% 3.49% 5.30% 4.37% 9.05% 7.87% 11.05% 10.18% 8.39% 11.83% 3.16% 3.56% 1.94% 1.66% -3.70% -3.60% -4.53% 16.10% -10.72% 5.94% 2.95% 2.79% 0.90%
Income tax (expense) benefit -0.29 -0.80 -1.11 -0.93 -2.12 -1.72 -2.41 -2.44 -1.84 -2.60 -0.65 -0.47 -0.22 -0.61 0.71 1.74 2.13 -3.26 2.79 -1.17 -0.61 -0.55 -0.21
Net income (loss) 1.20% 2.68% 4.19% 3.44% 6.93% 6.15% 8.63% 7.74% 6.55% 9.23% 2.51% 3.09% 1.72% 1.05% -2.99% -1.86% -2.40% 12.84% -7.94% 4.77% 2.35% 2.24% 0.69%
Net income attributable to noncontrolling interests -0.09 -0.13 -0.27 -0.05 -0.11 -0.52 -0.22 -0.29 -0.21 -0.15 -0.16 -0.28 -0.15 -0.47 -0.39 -0.30 -0.54 -0.79 -0.44 -0.97 -0.11 -0.12 -0.11
Net income (loss) attributable to Valero Energy Corporation stockholders 1.11% 2.55% 3.92% 3.39% 6.83% 5.63% 8.42% 7.46% 6.34% 9.09% 2.35% 2.81% 1.57% 0.58% -3.38% -2.16% -2.94% 12.05% -8.37% 3.80% 2.23% 2.12% 0.58%

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Revenues and Cost of Materials
The revenue percentage remains consistently at 100% throughout the periods. The cost of materials and other costs as a percentage of revenues fluctuated significantly over the quarters. From about -90.58% in early 2019, there is some volatility with a notable spike to -93.62% in Q3 2020 followed by a decline to around -82.34% in early 2023. However, the cost ratio increased again toward the end of 2023 and into 2024, reaching up to -91.15% in Q3 2024. This indicates fluctuating input costs relative to revenues over time.
Inventory Valuation Adjustments
The lower of cost or market (LCM) inventory valuation adjustment shows sporadic and highly variable impacts with significant negative adjustment of -11.5% in Q2 2020 followed by a positive adjustment of 21.62% in Q3 2020, then normalizing near zero or missing in other periods. This suggests episodic inventory write-downs or recoveries influencing costs during those specific quarters.
Operating Expenses
Operating expenses excluding depreciation and amortization generally ranged between -5.01% and -4.06% in 2019 but spiked sharply to -9.88% in Q2 2020, before stabilizing around -3.15% to -4.5% in subsequent quarters. This steep increase in mid-2020 aligns with elevated operational costs during the height of the pandemic. Depreciation and amortization expenses also rose markedly during 2020, peaking at -5.44% in Q2 2020, but declined in the following years, maintaining around -1.14% to -2.15% by early 2024.
Cost of Sales and Gross Profit
The cost of sales as a percentage of revenues demonstrated high volatility, especially in 2020, when it sharply dropped to -109.43% in Q1 2020, then peaked at -101.96% through 2021, indicating cost pressures exceeding total revenues. Post-2021, costs moderated to between -88.18% and -97.71% in 2024. Correspondingly, gross profit fluctuated widely, ranging from negative lows such as -9.43% in Q1 2020 and -2.52% in Q3 2020 to strong positive results over 10% in the 2022 and 2023 periods. The cyclical gross profit pattern suggests sensitivity to cost fluctuations and market conditions across the periods analyzed.
Other Operating Items
Other operating expenses consistently remained minimal and stable, mostly below -0.1% of revenues. General and administrative expenses showed some variability with a moderate decrease from around -0.86% in early 2019 to between -0.45% and -0.83% across 2022 and 2023. Depreciation and amortization within general and administrative expenses are stable near -0.03% of revenues, indicating relatively steady fixed asset amortization unrelated to production.
Operating Income
Operating income reflected volatility with positive values from 1.27% to 6.24% in 2019, a sharp negative swing to -10.3% in Q1 2020, then a recovery culminating in double-digit operating margins around 10-12% through 2022 and early 2023. The margin moderated down to around 1.54% in Q4 2024, indicating decreasing profitability toward the latest period.
Other Income and Interest Expense
Other income generally contributed positively, varying from 0.04% to 0.45% of revenues without clear trend but with generally increasing magnitude into 2023-2024. Interest and debt expenses showed increased burden in mid-2020 peaking at -1.37%, then returning to a range between -0.27% and -0.44% subsequently, implying improved interest cost management after pandemic-related spikes.
Pre-Tax and Net Income
Income before income tax closely mirrored operating income trends, showing sharp declines into negative territory in early 2020, followed by recovery and growth to double-digit percentages by 2022. Income tax expense fluctuated between negative and positive percentages, reflecting variability in tax benefits and expenses, with some periods of tax benefit in the pandemic quarters. Net income attributable to Valero Energy Corporation's stockholders exhibited a parallel pattern to pre-tax income, turning negative sharply in Q1 2020 (-8.37%), rebounding strongly through 2022 with a peak near 9.09%, then gradually declining toward 1.11% in Q3 2024, suggestive of a full recovery post-crisis but weakening net margins in the most recent quarters.
Summary of Financial Performance Trends
The data illustrate significant operating and profitability volatility centered around the 2020 pandemic period, with severe negative impacts on costs, operating, and net income margins. Recovery is evident from 2021 onward, with improvement in gross and operating margins into 2022 and early 2023. However, the most recent quarters show a trend of weakening profitability and rising cost ratios, which may indicate emerging cost pressures or market challenges requiring monitoring. Interest expense management improved post-pandemic, and operating efficiencies excluding depreciation improved gradually. Overall, the financial performance reflects resilience post-2020 shocks but signals the need for caution given the erosion of net income margins toward mid-2024.