Stock Analysis on Net

Chevron Corp. (NYSE:CVX)

Analysis of Debt

Microsoft Excel

Total Debt (Carrying Amount)

Chevron Corp., balance sheet: debt

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Short-term debt 4,406 529 1,964 256 1,548
Long-term debt, excluding debt due within one year 20,135 20,307 21,375 31,113 42,767
Total debt (carrying amount) 24,541 20,836 23,339 31,369 44,315

Based on: 10-K (reporting date: 2024-12-31), 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).

Debt item Description The company
Total debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Chevron Corp. total debt decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2024
Selected Financial Data (US$ in millions)
Short-term debt, excluding finance lease liabilities 12,598
Long-term debt, excluding due within one year and finance lease liabilities 9,791
Finance lease liabilities 604
Total debt (fair value) 22,993
Financial Ratio
Debt, fair value to carrying amount ratio 0.94

Based on: 10-K (reporting date: 2024-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 2.91%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
1.72% 4,000 69
2.95% 2,250 66
2.38% 2,000 48
3.85% 600 23
3.25% 500 16
2.24% 1,500 34
8.63% 102 9
8.42% 183 15
2.98% 293 9
6.00% 397 24
5.25% 330 17
5.05% 222 11
4.95% 187 9
4.20% 237 10
2.76% 1,750 48
7.25% 60 4
3.32% 205 7
6.10% 20 1
4.60% 604 28
Total 15,440 449
2.91%

Based on: 10-K (reporting date: 2024-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 449 ÷ 15,440 = 2.91%


Interest Costs Incurred

Chevron Corp., interest costs incurred

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Interest and debt expense 594 469 516 712 697
Capitalized interest 179 148 114 63 38
Financing interest and debt costs 773 617 630 775 735

Based on: 10-K (reporting date: 2024-12-31), 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).

Debt item Description The company
Interest and debt expense Amount of the cost of borrowed funds accounted for as interest expense for debt. Chevron Corp. interest and debt expense decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Chevron Corp. capitalized interest increased from 2022 to 2023 and from 2023 to 2024.
Financing interest and debt costs Total interest costs incurred during the period and either capitalized or charged against earnings. Chevron Corp. financing interest and debt costs decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Adjusted Interest Coverage Ratio

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 17,661 21,369 35,465 15,625 (5,543)
Add: Net income attributable to noncontrolling interest 88 42 143 64 (18)
Add: Income tax expense 9,757 8,173 14,066 5,950 (1,892)
Add: Interest and debt expense 594 469 516 712 697
Earnings before interest and tax (EBIT) 28,100 30,053 50,190 22,351 (6,756)
 
Financing interest and debt costs 773 617 630 775 735
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 47.31 64.08 97.27 31.39 -9.69
Adjusted interest coverage ratio (with capitalized interest)2 36.35 48.71 79.67 28.84 -9.19

Based on: 10-K (reporting date: 2024-12-31), 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).

2024 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest and debt expense
= 28,100 ÷ 594 = 47.31

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Financing interest and debt costs
= 28,100 ÷ 773 = 36.35


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Chevron Corp. adjusted interest coverage ratio deteriorated from 2022 to 2023 and from 2023 to 2024.