Return on Equity (ROE)
since 2005
Calculation
Valero Energy Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Valero Energy Corporation stockholders1 | ÷ | Total Valero Energy Corporation stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 33.53% | = | 100 | × | 8,835) | ÷ | 26,346) |
| Dec 31, 2022 | 48.93% | = | 100 | × | 11,528) | ÷ | 23,561) |
| Dec 31, 2021 | 5.05% | = | 100 | × | 930) | ÷ | 18,430) |
| Dec 31, 2020 | -7.56% | = | 100 | × | (1,421) | ÷ | 18,801) |
| Dec 31, 2019 | 11.11% | = | 100 | × | 2,422) | ÷ | 21,803) |
| Dec 31, 2018 | 14.41% | = | 100 | × | 3,122) | ÷ | 21,667) |
| Dec 31, 2017 | 18.48% | = | 100 | × | 4,065) | ÷ | 21,991) |
| Dec 31, 2016 | 11.43% | = | 100 | × | 2,289) | ÷ | 20,024) |
| Dec 31, 2015 | 19.44% | = | 100 | × | 3,990) | ÷ | 20,527) |
| Dec 31, 2014 | 17.56% | = | 100 | × | 3,630) | ÷ | 20,677) |
| Dec 31, 2013 | 13.98% | = | 100 | × | 2,720) | ÷ | 19,460) |
| Dec 31, 2012 | 11.55% | = | 100 | × | 2,083) | ÷ | 18,032) |
| Dec 31, 2011 | 12.73% | = | 100 | × | 2,090) | ÷ | 16,423) |
| Dec 31, 2010 | 2.16% | = | 100 | × | 324) | ÷ | 15,025) |
| Dec 31, 2009 | -13.46% | = | 100 | × | (1,982) | ÷ | 14,725) |
| Dec 31, 2008 | -7.24% | = | 100 | × | (1,131) | ÷ | 15,620) |
| Dec 31, 2007 | 28.28% | = | 100 | × | 5,234) | ÷ | 18,507) |
| Dec 31, 2006 | 29.36% | = | 100 | × | 5,463) | ÷ | 18,605) |
| Dec 31, 2005 | 23.85% | = | 100 | × | 3,590) | ÷ | 15,050) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
An analysis of the financial performance from 2005 to 2023 reveals a high degree of cyclicality in Return on Equity (ROE), reflecting the volatile nature of the underlying earnings. The performance is characterized by periods of strong profitability interrupted by sharp contractions, followed by a recent period of unprecedented returns.
- Initial Volatility and Contraction (2005–2009)
- The period began with strong ROE figures, peaking at 29.36% in 2006. However, this was followed by a severe downturn in 2008 and 2009, where ROE fell to -7.24% and -13.46%, respectively. These negative returns were driven by net losses that reached a low of -1,982 million US dollars in 2009.
- Recovery and Stabilization Phase (2010–2019)
- A recovery phase commenced in 2010 with an ROE of 2.16%, followed by a steady upward trend that peaked at 19.44% in 2015. For the subsequent four years, ROE remained positive and relatively stable, fluctuating between 11.11% and 18.48%, indicating a period of consistent value generation for stockholders.
- Recent Extremes and Peak Performance (2020–2023)
- A second significant contraction occurred in 2020, with ROE dropping to -7.56% amidst a net loss of 1,421 million US dollars. This was followed by an exceptional surge in profitability; 2022 marked a historical peak with an ROE of 48.93%, supported by a net income of 11,528 million US dollars. Although ROE moderated to 33.53% in 2023, it remains substantially higher than any period prior to 2022.
- Equity Base Evolution
- Total stockholders' equity demonstrated a general long-term growth trend, increasing from 15,050 million US dollars in 2005 to 26,346 million US dollars by 2023. While equity grew steadily, the extreme volatility in ROE was primarily driven by wide fluctuations in net income rather than significant changes in the equity base.
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Comparison to Competitors
Valero Energy Corp., ROE, long-term trends, comparison to competitors
| Valero Energy Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2023 | 33.53% | 13.28% | 22.23% | 17.58% |
| Dec 31, 2022 | 48.93% | 22.27% | 38.91% | 28.58% |
| Dec 31, 2021 | 5.05% | 11.24% | 17.79% | 13.67% |
| Dec 31, 2020 | -7.56% | -4.21% | -9.05% | -14.28% |
| Dec 31, 2019 | 11.11% | 2.03% | 20.55% | 7.48% |
| Dec 31, 2018 | 14.41% | 9.59% | 19.59% | 10.87% |
| Dec 31, 2017 | 18.48% | 6.21% | -2.79% | 10.50% |
| Dec 31, 2016 | 11.43% | -0.34% | -10.34% | 4.69% |
| Dec 31, 2015 | 19.44% | 3.00% | -11.14% | 9.45% |
| Dec 31, 2014 | 17.56% | 12.41% | 13.23% | 18.65% |
| Dec 31, 2013 | 13.98% | 14.37% | 17.58% | 18.72% |
| Dec 31, 2012 | 11.55% | 19.18% | 17.56% | 27.06% |
| Dec 31, 2011 | 12.73% | 22.16% | 19.07% | 26.59% |
| Dec 31, 2010 | 2.16% | 18.10% | 16.57% | 20.74% |
| Dec 31, 2009 | -13.46% | 11.41% | 7.78% | 17.44% |
| Dec 31, 2008 | -7.24% | 27.62% | -30.81% | 40.03% |
| Dec 31, 2007 | 28.28% | 24.24% | 13.36% | 33.35% |
| Dec 31, 2006 | 29.36% | 24.86% | 18.82% | 34.70% |
| Dec 31, 2005 | 23.85% | 22.50% | 25.66% | 32.50% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Valero Energy Corp., ROE, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Valero Energy Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2023 | 33.53% | 16.46% |
| Dec 31, 2022 | 48.93% | 27.31% |
| Dec 31, 2021 | 5.05% | 13.24% |
| Dec 31, 2020 | -7.56% | -9.63% |
| Dec 31, 2019 | 11.11% | 6.59% |
| Dec 31, 2018 | 14.41% | 11.08% |
| Dec 31, 2017 | 18.48% | 7.66% |
| Dec 31, 2016 | 11.43% | 1.07% |
| Dec 31, 2015 | 19.44% | 4.49% |
| Dec 31, 2014 | 17.56% | 15.37% |
| Dec 31, 2013 | 13.98% | 16.83% |
| Dec 31, 2012 | 11.55% | 22.69% |
| Dec 31, 2011 | 12.73% | 23.57% |
| Dec 31, 2010 | 2.16% | 18.98% |
| Dec 31, 2009 | -13.46% | 13.07% |
| Dec 31, 2008 | -7.24% | 20.47% |
| Dec 31, 2007 | 28.28% | 24.73% |
| Dec 31, 2006 | 29.36% | 27.20% |
| Dec 31, 2005 | 23.85% | 28.14% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Valero Energy Corp., ROE, long-term trends, comparison to industry (energy)
| Valero Energy Corp. | Energy | |
|---|---|---|
| Dec 31, 2023 | 33.53% | 16.67% |
| Dec 31, 2022 | 48.93% | 26.98% |
| Dec 31, 2021 | 5.05% | 13.21% |
| Dec 31, 2020 | -7.56% | -12.46% |
| Dec 31, 2019 | 11.11% | 3.63% |
| Dec 31, 2018 | 14.41% | 10.63% |
| Dec 31, 2017 | 18.48% | 6.58% |
| Dec 31, 2016 | 11.43% | 0.52% |
| Dec 31, 2015 | 19.44% | 4.61% |
| Dec 31, 2014 | 17.56% | 15.28% |
| Dec 31, 2013 | 13.98% | 16.85% |
| Dec 31, 2012 | 11.55% | 22.06% |
| Dec 31, 2011 | 12.73% | 22.94% |
| Dec 31, 2010 | 2.16% | 18.51% |
| Dec 31, 2009 | -13.46% | 13.29% |
| Dec 31, 2008 | -7.24% | 21.20% |
| Dec 31, 2007 | 28.28% | 25.23% |
| Dec 31, 2006 | 29.36% | 27.51% |
| Dec 31, 2005 | 23.85% | 28.17% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).