Valero Energy Corp. (NYSE:VLO)

Total Asset Turnover

The reported total asset turnover experienced a decline from 2.01 in 2019 to 1.25 in 2020, followed by a recovery to 1.97 in 2021 and a strong increase to 2.89 in 2022 before decreasing to 2.3 in 2023. The adjusted figures show a similar pattern with slightly lower values, indicating that after an initial drop in 2020, asset utilization efficiency improved significantly, peaking in 2022 before a slight decline in 2023.

Current Ratio

The reported current ratio increased from 1.44 in 2019 to 1.71 in 2020, then dropped to 1.26 in 2021. It rebounded to 1.38 in 2022 and further improved to 1.56 in 2023. Adjusted current ratios consistently remained higher than reported values, showing an overall strengthening in short-term liquidity over time, with a notable dip in 2021.

Debt to Equity Ratio

The reported debt to equity ratio rose markedly from 0.44 in 2019 to 0.78 in 2020, then slightly declined to 0.75 in 2021, followed by a more pronounced reduction to 0.49 in 2022 and returning to 0.44 in 2023. Adjusted ratios follow the same downward trajectory after 2020. This suggests an initial increase in leverage during 2020 with a subsequent deleveraging trend through 2023.

Debt to Capital Ratio

The reported debt to capital ratio increased from 0.31 in 2019 to 0.44 in 2020, then gradually declined to 0.43 in 2021, 0.33 in 2022, and 0.30 in 2023. Adjusted measures show a consistent decline post-2020 peak. This pattern supports the deleveraging observation, indicating reduced reliance on debt relative to capital over recent years.

Financial Leverage

The reported financial leverage rose from 2.47 in 2019 to 2.75 in 2020, further increasing to 3.14 in 2021, before decreasing to 2.59 in 2022 and 2.39 in 2023. Adjusted leverage measures exhibit similar fluctuations but at lower levels, suggesting a peak in leverage in 2021 followed by a reduction, reflecting management’s efforts to lower overall financial risk.

Net Profit Margin

The reported net profit margin dropped from a positive 2.24% in 2019 to a negative -2.19% in 2020, recovered to 0.82% in 2021, then rose substantially to 6.54% in 2022 and slightly decreased to 6.1% in 2023. Adjusted margins show a deeper negative margin in 2020 and stronger recoveries afterward, peaking at 7.19% in 2022. This indicates significant volatility with a pronounced recovery and improvement in profitability following the 2020 downturn.

Return on Equity (ROE)

The reported ROE fell from 11.11% in 2019 to -7.56% in 2020, rose to 5.05% in 2021, then surged to 48.93% in 2022 before moderating to 33.53% in 2023. Adjusted ROE shows a similar negative dip in 2020 and significant gains in subsequent years, though with less volatility. These trends reflect a marked profitability recovery and increasing efficiency in generating shareholder returns, especially notable in 2022.

Return on Assets (ROA)

The reported ROA declined from 4.5% in 2019 to -2.74% in 2020, rose modestly to 1.61% in 2021, then sharply increased to 18.9% in 2022 before decreasing to 14.01% in 2023. Adjusted ROA shows a similarly sharp decline in 2020 and a strong recovery, peaking at 18.83% in 2022. This pattern indicates improved asset profitability and operational efficiency after the 2020 setback.

Revenues

Revenues exhibited significant fluctuations over the five-year period. There was a sharp decline from 108,324 million US$ in 2019 to 64,912 million US$ in 2020, likely impacted by external factors such as market conditions or global events. Subsequently, revenues rebounded notably to 113,977 million US$ in 2021 and continued to grow substantially to 176,383 million US$ in 2022. However, in 2023, revenues experienced a decline to 144,766 million US$, indicating some volatility in sales or pricing.

Total Assets

Total assets showed a generally steady increase through the years. Starting at 53,864 million US$ in 2019, they slightly decreased in 2020 to 51,774 million US$ but then increased each year to reach 63,056 million US$ by the end of 2023. This trend suggests consistent investment or asset accumulation despite short-term contractions.

Reported Total Asset Turnover

The reported total asset turnover ratio experienced notable variation. It declined sharply from 2.01 in 2019 to 1.25 in 2020, reflecting reduced efficiency in generating revenue from assets during that year. Improvements followed, with the ratio rising to 1.97 in 2021 and peaking at 2.89 in 2022, suggesting enhanced asset utilization. By 2023, it decreased to 2.3, still above the 2019 level, indicating relatively strong performance despite some decrease.

Adjusted Total Assets

Adjusted total assets generally increased over the period, beginning at 56,400 million US$ in 2019, dropping to 53,121 million US$ in 2020, and then rising consistently to 67,484 million US$ by 2023. This aligns with the trend in reported total assets and suggests adjustments accounted for changes in valuation or accounting that still indicate growth and expansion.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio followed a similar pattern to the reported turnover. It decreased from 1.92 in 2019 to 1.22 in 2020, indicating decreased efficiency during that period. This was followed by a steady recovery to 1.81 in 2021 and a peak at 2.62 in 2022. In 2023, the ratio declined to 2.15, remaining above pre-pandemic levels, showing that asset productivity improved markedly after 2020 but experienced some moderation in the most recent year.

The financial data reveals several notable trends over the five-year period. Current assets exhibited a general upward trajectory, increasing from US$18,969 million in 2019 to US$26,221 million in 2023, with a slight dip observed in 2020. Current liabilities fluctuated during the period, showing a significant decline from US$13,160 million in 2019 to US$9,283 million in 2020, followed by an increase reaching US$16,851 million in 2021, and then relatively stabilizing around US$17,461 million in 2022 and slightly declining to US$16,802 million in 2023.

The reported current ratio, which measures liquidity by comparing current assets to current liabilities, displayed variability consistent with the changes in assets and liabilities. It improved from 1.44 in 2019 to a peak of 1.71 in 2020, decreased to 1.26 in 2021, and then showed a gradual recovery, reaching 1.56 in 2023. This indicates fluctuations in liquidity, with 2021 representing the lowest liquidity position in the period under analysis.

The adjusted current assets follow a similar rising trend as the reported current assets but remain consistently higher, starting from US$21,505 million in 2019 and increasing to US$30,649 million in 2023. This adjustment reflects a more comprehensive measure of liquid resources. Correspondingly, the adjusted current ratio remains above the reported current ratio across all years, beginning at 1.63 in 2019 and improving steadily to reach 1.82 in 2023. This suggests that when considering the adjusted asset values, the company maintains a stronger liquidity position, with consistent improvement over the recent years.

Current Assets

Increased overall, showing strong growth from 2019 through 2023 despite a small decline in 2020.

Current Liabilities

Were volatile, sharply decreasing in 2020, then rising considerably in 2021, remaining relatively stable thereafter.

Reported Current Ratio

Fluctuated, peaking in 2020, bottoming out in 2021, and gradually improving to 2023, indicating shifting liquidity levels.

Adjusted Current Assets

Consistently higher than reported assets, with a steady upward trend over the period, suggesting an increasing liquid asset base.

Adjusted Current Ratio

Steadily improved each year, remaining above the reported ratio, illustrating a strengthening liquidity position when adjustments are considered.

An analysis of the annual financial data reveals several noteworthy trends over the five-year period under review. Total debt increased substantially from 2019 to 2020, rising from $9,672 million to $14,677 million, followed by a gradual reduction in subsequent years, reaching $11,524 million by the end of 2023. This indicates a peak in indebtedness in 2020 before a strategic effort to decrease overall debt levels.

Shareholders’ equity exhibited a different trajectory. Initially, equity declined from $21,803 million in 2019 to $18,430 million in 2021, reflecting a contraction in net assets during this timeframe. However, following this decrease, equity rebounded significantly, increasing to $26,346 million by the end of 2023, surpassing the starting level from 2019 and indicating a strengthening of the company's capital base in later years.

When examining the reported debt to equity ratio, a sharp increase is evident in 2020, rising from 0.44 to 0.78, which corresponds with the heightened total debt and decreased equity for that year. This ratio then declined steadily in subsequent years to 0.44 by 2023, signaling an improvement in the company’s leverage position and a reduction in financial risk related to debt burdens relative to equity.

Adjusted total debt follows a similar pattern to total debt but consistently remains higher, starting at $10,962 million in 2019, peaking at $15,847 million in 2020, then decreasing gradually to $12,637 million in 2023. Adjusted total equity shows a contrasting trend, beginning at $30,175 million in 2019 and slightly decreasing to $26,264 million in 2020, before increasing markedly to $38,301 million in 2023. This increase points to strong equity growth once adjustments are considered.

The adjusted debt to equity ratio reflects these movements, showing an increase from 0.36 in 2019 to 0.60 in 2020, then a consistent decline each year to 0.33 in 2023. This downward trend highlights a solid improvement in the leverage position when evaluating adjusted figures, suggesting enhanced financial stability and a more conservative capital structure in recent years.

Total Debt

Risen sharply in 2020, then gradually decreased through 2023.

Stockholders’ Equity

Decreased until 2021, followed by significant growth exceeding 2019 levels by 2023.

Reported Debt to Equity Ratio

Peaked in 2020, then declined steadily, returning to initial levels by 2023.

Adjusted Total Debt

Higher than reported debt but following a similar upward spike in 2020 and subsequent decline.

Adjusted Total Equity

Declined slightly in 2020, then increased substantially through 2023.

Adjusted Debt to Equity Ratio

Rose significantly in 2020, but showed a strong, continuous decrease through 2023, indicating improving leverage.

Total Debt

The total debt of the company increased significantly from 2019 to 2020, rising from 9,672 million US dollars to 14,677 million US dollars. Subsequent years showed a gradual decrease, with total debt declining to 11,524 million US dollars by the end of 2023, indicating efforts to reduce leverage after the peak in 2020.

Total Capital

Total capital demonstrated an overall upward trend throughout the period. It increased from 31,475 million US dollars in 2019 to 37,870 million US dollars in 2023, with minor fluctuations, suggesting ongoing capital growth and financing activities supporting business expansion or asset acquisition.

Reported Debt to Capital Ratio

The reported debt to capital ratio rose markedly from 0.31 in 2019 to 0.44 in 2020, reflecting the sharp increase in debt relative to capital that year. This ratio then fell gradually to 0.30 by 2023, mirroring the reduction in total debt and the growth in capital, which points to an improving leverage position and stronger capitalization over time.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to reported total debt, increasing from 10,962 million US dollars in 2019 to a peak of 15,847 million in 2020. Thereafter, it declined steadily to 12,637 million US dollars in 2023, reinforcing the trend of deleveraging after 2020.

Adjusted Total Capital

Adjusted total capital showed consistent growth across the years, starting at 41,137 million US dollars in 2019 and rising to 50,938 million US dollars by 2023. This progression denotes sustained expansion in capital resources, supporting overall financial stability.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio increased from 0.27 in 2019 to 0.38 in 2020, indicating a higher proportion of debt in the adjusted capital structure during that year. From 2020 onward, the ratio declined steadily to 0.25 by 2023. This decline indicates a deliberate reduction in leverage and a strengthening balance sheet when considering adjusted figures.

Total assets

Total assets showed a general upward trajectory over the five-year period, increasing from $53,864 million at the end of 2019 to $63,056 million by the end of 2023. There was a slight decline observed in 2020, followed by steady growth in subsequent years.

Stockholders’ equity

Stockholders' equity experienced fluctuations, decreasing from $21,803 million at the end of 2019 to a low of $18,430 million in 2021. However, equity rebounded significantly in 2022 and 2023, reaching $26,346 million by the end of 2023, the highest point in the period considered.

Reported financial leverage

The reported financial leverage ratio increased from 2.47 in 2019 to a peak of 3.14 in 2021, indicating a rise in liabilities relative to equity during this period. After 2021, this ratio sharply declined, reaching 2.39 by the end of 2023, suggesting a reduction in leveraged exposure or an improvement in equity financing.

Adjusted total assets

Adjusted total assets demonstrated consistent growth from $56,400 million in 2019 to $67,484 million in 2023, showing a steadier increase compared to the reported total assets. These adjustments reflect a broader asset base or valuation changes that exceeded the growth measured by the reported figures.

Adjusted total equity

Adjusted total equity mirrored the overall trend in reported equity but on a higher scale, decreasing from $30,175 million in 2019 to $26,264 million in 2020, then rising significantly to $38,301 million in 2023. The fluctuations indicate varying adjustments affecting equity valuation or recognition over the years, with a strong recovery post-2020.

Adjusted financial leverage

The adjusted financial leverage ratio increased slightly from 1.87 in 2019 to 2.09 in 2021, reflecting moderate increases in debt relative to adjusted equity. Thereafter, the leverage ratio declined to 1.76 by 2023, consistent with improvements in equity and a relatively controlled growth in adjusted assets. This trend suggests enhanced financial stability under adjusted measures.

The financial data reveals notable fluctuations across the analyzed periods, with significant variation in both profitability and revenue metrics.

Net Income (Loss) and Adjusted Net Income

Net income attributable to stockholders exhibited a steep decline in 2020, turning into a loss of $1,421 million from a positive $2,422 million in 2019. This was followed by a recovery in 2021 with net income of $930 million, and a substantial increase in 2022 reaching $11,528 million before declining to $8,835 million in 2023. Adjusted net income followed a similar pattern but with higher volatility. It dropped to a loss of $2,037 million in 2020 from $4,174 million in 2019, then rebounded sharply in 2021 to $5,291 million. This upward trend continued in 2022, peaking at $12,674 million, but then declined to $7,931 million in 2023.

Revenues

Revenues displayed significant swings over the years. After a decrease from $108,324 million in 2019 to $64,912 million in 2020, revenue substantially increased to $113,977 million in 2021. This upward momentum accelerated in 2022, reaching a peak of $176,383 million before contracting to $144,766 million in 2023. These variations indicate sensitivity to market or operational conditions affecting sales volume or pricing.

Net Profit Margin and Adjusted Net Profit Margin

The reported net profit margin sharply declined from a positive 2.24% in 2019 to a negative 2.19% in 2020, reflecting the net loss incurred during that year. Subsequent years showed recovery, with margins noted as 0.82% in 2021 and peaking at 6.54% in 2022, before a slight decrease to 6.1% in 2023. Adjusted net profit margin mirrored this trend but with higher margin percentages, starting at 3.85% in 2019, decreasing to -3.14% in 2020, and increasing to a high of 7.19% in 2022. It fell to 5.48% in 2023, still outperforming the reported profit margin.

Overall, the financial indicators show a period of pronounced disruption in 2020, with sharp reversals in profitability and revenue. The company demonstrated a strong recovery starting in 2021, peaking in 2022, followed by some moderation in 2023. The adjusted metrics consistently suggest better performance than reported figures, highlighting the impact of non-recurring items or adjustments on profitability analysis. The data suggests sensitivity to external or internal factors influencing both earnings and sales, with a general trend toward stabilization after the recovery phase.

The financial data indicates significant fluctuations in the company's profitability over the analyzed periods. Net income experienced a sharp decline in 2020, turning negative, followed by recovery and substantial growth in 2022, before settling at a reduced yet still strong level in 2023. This volatility is similarly reflected in the reported Return on Equity (ROE), which mirrors net income trends closely, with a negative ROE in 2020, followed by a strong rebound peaking in 2022 and tapering in 2023.

Stockholders’ equity showed a general upward trend despite a decline from 2019 to 2021, suggesting reinvestment or capital accumulation after 2021, contributing to equity growth through 2023. Adjusted figures, which presumably exclude certain one-time or non-recurring items, reveal a broader variation. Adjusted net income aligns with the net income trends but shows a more pronounced increase in 2021 and 2022, indicating possibly higher underlying profitability when adjustments are made.

Similarly, adjusted total equity trends upward more consistently than the reported equity, reflecting a steadier increase in the company’s adjusted capital base. Adjusted ROE follows a similar pattern to net income and reported ROE but with generally higher values during recovery years, emphasizing stronger adjusted profitability relative to equity in these periods.

Net Income and Profitability

The net income dipped substantially into negative territory in 2020 after a profitable 2019, recovering by 2021 and surging significantly in 2022 before decreasing in 2023. This indicates volatile earnings performance, possibly influenced by external market or operational factors.

Reported ROE reflects these earnings swings, highlighting strong returns during profitable years and negative returns during the downturn.

Equity Base

Total stockholders’ equity contracted slightly from 2019 to 2021, which could be attributed to losses or distributions exceeding earnings, then expanded considerably through 2023. This suggests a strengthening financial position in recent years.

Adjusted total equity shows a more stable upward trend, implying adjustments may remove volatility or one-time impacts on equity.

Adjusted Measures

Adjusted net income experiences more pronounced increases than reported net income in the recovery years, highlighting higher underlying profitability when accounting for adjustments.

Adjusted ROE remains consistently higher than reported ROE during years of recovery, reinforcing the view of stronger sustainable returns without unusual items.

Overall, the data reveals a period of pronounced volatility in earnings and returns around 2020, followed by a robust recovery phase marked by enhanced profitability and equity growth. Adjusted figures suggest that the core underlying business performance is stronger than raw reported numbers indicate, especially during the rebound period post-2020.

The financial data reveals significant fluctuations in profitability over the five-year period under review. Net income attributable to stockholders exhibited considerable volatility, with a notable loss recorded in 2020, followed by a recovery and substantial growth in 2022, before declining somewhat in 2023. Adjusted net income follows a similar pattern, corroborating the underlying earnings trends while accounting for non-recurring items.

Total assets displayed a gradual but consistent increase from 2019 through 2023. This steady asset growth suggests ongoing investment or expansion efforts, although the increase is more pronounced when considering adjusted total assets, which also follow an upward trajectory with a marked rise especially after 2020.

Return on assets (ROA) measurements reflect the earnings volatility seen in the net income figures. The reported ROA shifted markedly from positive in 2019 to negative in 2020, before recovering strongly in the subsequent years, peaking in 2022. The adjusted ROA displays a similar trend but with slightly different magnitudes, showing an even stronger negative impact in 2020 and a robust recovery by 2022. Both ROA measures declined in 2023 compared to the previous year, though they remained well above the levels observed in 2019 and 2021.

Profitability Trends

A sharp decline in profitability occurred in 2020, reflected by negative net and adjusted net income and negative ROA. This downturn was followed by a strong recovery in 2021 and a pronounced peak in 2022, indicating a period of exceptional financial performance. However, profitability diminished somewhat in 2023, signaling potential challenges or normalization after the peak year.

Asset Base Expansion

The company's asset base expanded steadily over the observed period, with total assets increasing by approximately 17% from 2019 to 2023. Adjusted total assets reflected a similar increase but at a slightly higher rate, suggesting asset growth adjusted for specific accounting or valuation considerations. This consistent asset growth supports the company’s operational scale and strategic investments.

Return Efficiency

ROA values mirrored net income trends, indicating that asset utilization efficiency was impacted significantly by the 2020 downturn but improved markedly during 2021 and 2022. Adjusted ROA metrics highlight a stronger negative impact during 2020 and a higher positive peak in 2022 compared to reported ROA, suggesting adjustments clarified the profitability picture. The decline in 2023's ROA from its peak indicates a reduction in asset efficiency, despite overall asset growth.

Overall, the data suggests a period of volatility centered around 2020, likely due to external factors impacting earnings negatively. The subsequent recovery and peak performance in 2022 demonstrate resilience and effective asset utilization, though the partial decline in 2023 may merit further attention to maintain growth momentum and profitability.