Graded Fina Ratios
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University of Texas, Permian Basin *
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Course
4375
Subject
Geology
Date
Dec 6, 2023
Type
docx
Pages
5
Uploaded by DoctorRaccoonPerson1021
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Fina Ratios
Veronica Reyes
University of Texas Permian Basin
MNGT-4375.793 Strategic Management
Professor Katelin Barron
November 19, 2023
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Profit Margin
According to the data, Phillips had the most significant profit margin in 2018, reaching
5.01%, followed by Valero, which came in at 2.66%. After analyzing the provided data from
2018 to 2022, Phillips 66 and Valero had a significant increase in revenue retained (Julie Harris,
Kevin Hack). In 2020, there was a substantial decline in the refining industry due to the
pandemic, causing the demand for motor fuels and refined petroleum products to decrease
substantially, causing Phillips and Valero to suffer significantly. The pattern in the chart indicates
that Phillips and Valero have been doing well since 2020 because they have kept their profit
margins at a high level, proving that they have effectively managed their costs and maintained a
high operational efficiency.
Sales Growth
After analyzing the data, the graph details the increase during the past five years, where
Valero had the highest sales growth rate in 2018, coming in at 20%, followed by Phillips at 8%.
After the decline in 2020, the effect of the pandemic challenged the market conditions in many
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aspects, increasing market interest in renewable diesel production and causing pre-existing plants
to scale down, even contributing to the close of a handful of refineries.
Since then, Valero
seemed to have strong resilience after significantly decreasing by 67%. (eia.gov). The pattern in
the figure indicates that Phillips and Valero have been doing well in terms of their sales growth,
as both companies have kept their growth rates at relatively high levels over
the last five years.
This proves that they have secured a more significant portion of the market and maintained
their position as a competitive force.
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Earnings per share
According to the chart, Phillips had the best earnings per share in 2018 at $11.80,
followed by Valero at $7.29. Looking at the data provided by Macrotrends after the decline in
2020
,
Phillips and Valero have been doing well in terms of their earnings per share; both have
managed to keep their shares at a relatively high level over the last five years. This would imply
that they have expanded their profitability and earned higher returns for their shareholders due to
their efforts. Moreover, the resilience of both companies proves that they are profitable and can
quickly bring a return on investment after unfavorable conditions and unforeseen declinations.
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References
https://www.eia.gov/todayinenergy/detail.php?id=48636
https://www.macrotrends.net/stocks/charts/VLO/valero-energy/eps-earnings-per-share-diluted