Valero Energy Corp. (NYSE:VLO)

Revenues

Revenues exhibited a generally upward trend from 2005 through 2008, peaking at 119,114 million USD in 2008. A significant decline occurred in 2009 to 68,144 million USD, followed by a gradual recovery through 2014. Revenues fluctuated with periods of both increases and decreases, reaching a notable high of 176,383 million USD in 2022 before decreasing again to 144,766 million USD in 2023.

Operating Income (Loss)

Operating income showed volatility across the years. It rose from 5,459 million USD in 2005 to a peak of 8,010 million USD in 2006, then decreased sharply in subsequent years, with losses recorded in 2009 (-58 million USD) and 2020 (-1,579 million USD). Operating income recovered strongly in later years, reaching a substantial peak of 15,690 million USD in 2022 before declining to 11,858 million USD in 2023. Overall, operating income tracked revenue patterns but with greater variability.

Net Income (Loss) attributable to Stockholders

Net income also experienced significant fluctuations. It increased from 3,590 million USD in 2005 to 5,463 million USD in 2006, with some declines and losses during downturn periods, notably in 2008 (-1,131 million USD), 2009 (-1,982 million USD), and 2020 (-1,421 million USD). After each loss period, net income generally recovered, reaching a peak of 11,528 million USD in 2022, followed by a decline to 8,835 million USD in 2023. This indicates periods of financial stress and recovery, closely aligned with trends in revenues and operating income.

The financial data reveals several notable trends in the asset composition and overall asset growth of the company over the examined period.

Current Assets

Current assets increased substantially from 8,276 million USD at the end of 2005 to 26,221 million USD by the end of 2023. This represents a more than threefold increase over the 18-year span. The growth was not entirely linear, with fluctuations observed in certain years. For example, there was a noticeable decline from 14,792 million USD in 2007 to 9,450 million USD in 2008, likely reflective of broader economic or operational factors at that time. Afterward, current assets trended upward with some volatility, indicating possible changes in working capital management or operational cash flow, including a dip in 2020 to 15,844 million USD before rising again in subsequent years.

Total Assets

Total assets similarly showed an overall upward trajectory from 32,728 million USD in 2005 to 63,056 million USD in 2023, almost doubling over the period. The asset base experienced a decline in 2008, falling from 42,722 million USD in 2007 to 34,417 million USD, before resuming growth in the following years. The total assets remained relatively stable from about 2013 to 2016, fluctuating between 44,343 million USD and 50,158 million USD, and then increased steadily from 2017 onward, reaching the highest point in 2023. The growth in total assets suggests ongoing investment in long-term assets or acquisitions supporting expansion.

Overall, the data indicates that the company has expanded both its liquid asset base and total asset holdings substantially over the nearly two decades of data available. Periods of decline in both current and total assets, notably in 2008, may reflect the impact of macroeconomic conditions or company-specific events, followed by recovery and growth phases. The persistent increase in total assets towards the end of the period underscores a strategy oriented toward asset growth and potentially increased operational capacity.

The analysis of the financial data reveals several noteworthy trends in the company’s liabilities, debt obligations, and equity over the examined period.

Current Liabilities

Current liabilities showed significant fluctuations throughout the years. There was an initial increase from 7,305 million USD in 2005 to a peak of 11,914 million USD in 2007, followed by a sharp decrease to 6,209 million USD in 2008. After 2008, current liabilities generally increased again, reaching a high point of 13,160 million USD in 2019 before declining in the subsequent years to 16,802 million USD in 2023. The data illustrates volatility with intermittent rises and falls, suggesting variability in short-term obligations over time.

Debt and Finance Lease Obligations

Debt and finance lease obligations showed a general upward trend from 5,378 million USD in 2005 to a peak of 14,677 million USD in 2020. There was some fluctuation in the earlier years, with notable increases between 2005 and 2007 and some reduction in the period leading up to 2013. After 2014, debt levels steadily increased again, peaking in 2020, before slightly declining in the years following, ending at 11,524 million USD in 2023. This indicates the company had periods of increased leverage, reaching the highest debt levels around 2020, followed by some deleveraging.

Total Stockholders’ Equity

Stockholders’ equity exhibited an overall positive trajectory with gradual growth. Starting at 15,050 million USD in 2005, equity increased steadily through 2013, reaching 20,677 million USD. After a slight decline around 2016 and 2020, equity again increased significantly to 26,346 million USD by 2023. This upward movement suggests consistent value creation and accumulation of equity over the long term, despite variations in the mid-period.

In summary, the company experienced volatility in current liabilities and debt levels, reflective of changing operational and financing strategies. However, the steady increase in equity over the examined period underscores a trend of growth in shareholder value. The peak of debt in 2020, coinciding with a dip in equity, may indicate challenges or strategic financial adjustments during this period, followed by recovery and strengthening of the equity base thereafter.

Operating Activities Cash Flow

The net cash provided by operating activities demonstrates significant fluctuations over the years. Beginning with a strong inflow of $5,799 million in 2005, the value peaked at $6,312 million in 2006 before experiencing a general decline reaching a low of $948 million in 2020. However, a marked recovery is observed thereafter, with operating cash flows rebounding substantially to $12,574 million in 2022, followed by a decline to $9,229 million in 2023. Overall, the data suggests resilience in operating cash generation despite volatility, particularly during economic downturns like 2008-2009 and the 2020 period.

Investing Activities Cash Flow

Net cash used in investing activities consistently represents an outflow across all periods. The magnitude of investing cash outflows varies, beginning with a significant outflow of $4,900 million in 2005, sharply reducing to $582 million in 2007, and fluctuating between approximately $1,405 million and $5,298 million in subsequent years. Notably, the years 2011 and 2018 show spikes in investing cash outflows at $5,298 million and $3,928 million respectively, indicating periods of increased capital expenditure or investment. The overall trend reveals continued investment activity with varying intensity, reflecting ongoing commitments to asset acquisition or expansion.

Financing Activities Cash Flow

The net cash flows from financing activities exhibit pronounced variability, shifting between net outflows and inflows over the analyzed timeframe. Early years, particularly 2005 through 2008, show predominant outflows, reaching a low of $3,831 million used in financing in 2007. A brief positive inflow phase occurs in 2009 and 2010, with inflows of $1,289 million and $816 million respectively, suggesting debt issuance or equity financing during these periods. Afterwards, from 2011 onwards, the financing cash flows predominantly return to negative territory, culminating in significant outflows of $8,849 million in 2022 and $6,941 million in 2023. The variability evidences active capital structure management, with episodes of debt repayments or dividend distributions influencing these cash flows.

Overall Cash Flow Dynamics

The interplay among operating, investing, and financing activities highlights a cycle of cash generation primarily through operations, sustained investment expenditure, and fluctuating financing activity. Despite periods of reduced operating cash flow, the company maintains investment commitments, funded variously by internal cash generation or external financing adjustments. The strong rebound in operating cash flows towards recent years provides a supportive base for ongoing investment and potential deleveraging, as suggested by high financing outflows in 2022 and 2023.

Basic earnings per share (EPS)

The basic earnings per share demonstrated notable volatility over the period. Between 2005 and 2007, EPS increased from $6.51 to $9.27, indicating improving profitability. However, in 2008 and 2009, the company experienced negative earnings of -$2.16 and -$3.67, respectively, reflecting a significant downturn likely attributable to adverse market or operational conditions. From 2010 onwards, earnings gradually recovered, reaching positive values again and even peaking at $29.05 in 2022. The most recent figure in 2023 shows a slight decline to $24.93, though it remains substantially higher than earlier years, highlighting a strong rebound in profitability over the long term.

Diluted earnings per share

The diluted earnings per share closely followed the trend observed in basic EPS, with minor variations. It reached a high of $8.88 in 2007 before declining sharply to negative values in 2008 and 2009. Recovery began in 2010, and by 2022, diluted EPS peaked at $29.04, mirroring the basic EPS peak. The 2023 figure declined to $24.92, consistent with basic EPS, confirming the pattern of increased earnings capacity after the downturn years with slight recent moderation.

Dividend per share

Dividends per share exhibited a general upward trend over the years, despite fluctuations in earnings. Starting from $0.19 per share in 2005, dividends increased steadily, reaching $1.7 by 2014 and continuing to rise to $3.92 from 2016 through 2022. A further increase to $4.08 occurred in 2023. This consistent growth in dividends indicates the company's sustained commitment to returning value to shareholders even during periods of earnings volatility, with the dividend payout generally advancing alongside improved profitability in recent years.