Chevron Corp. (NYSE:CVX)

The financial data reveals the trends in reported and goodwill-adjusted total assets as well as stockholders' equity of the company over a five-year period.

Total Assets

Reported total assets showed a generally increasing trend from 2020 to 2023, rising from approximately $239.8 billion to a peak of about $261.6 billion. However, in 2024, there was a slight decline to roughly $257.0 billion. Adjusted total assets, which exclude goodwill, followed a similar trajectory with an increase from approximately $235.4 billion in 2020 to around $256.9 billion in 2023, followed by a decrease to about $252.4 billion in 2024. The difference between reported and adjusted assets remains consistent, reflecting the impact of goodwill on the balance sheet.

Stockholders’ Equity

Both reported and adjusted stockholders’ equity exhibited steady growth from 2020 through 2023. Reported equity rose from about $131.7 billion to approximately $161.0 billion, while adjusted equity increased from roughly $127.3 billion to $156.2 billion in the same period. In 2024, reported equity declined to approximately $152.3 billion, whereas adjusted equity decreased to around $147.7 billion. The congruent movement between reported and adjusted equity suggests a consistent valuation approach excluding goodwill adjustments.

Overall, the data indicates steady asset and equity growth over the first four years, peaking in 2023, followed by a modest decline in 2024. The adjustments for goodwill do not significantly alter the overall asset or equity trends but provide a clearer view of tangible resources and capital. This pattern may reflect business expansion or market conditions improving asset values until 2023, with possible strategic, operational, or market factors contributing to the slight reduction in 2024.

Total Asset Turnover

The reported total asset turnover showed a significant increase from 0.39 in 2020 to a peak of 0.91 in 2022, indicating improved efficiency in using assets to generate sales. However, a decline followed in 2023 to 0.75, stabilizing at that level in 2024. The adjusted total asset turnover, which accounts for goodwill, follows a similar pattern with marginally higher values, suggesting the exclusion of goodwill slightly improves asset efficiency metrics.

Financial Leverage

Financial leverage steadily declined from 1.82 in 2020 to 1.62 in 2022, indicating a reduction in reliance on debt financing relative to equity. From 2023 onwards, it stabilized around 1.63 to 1.69. The adjusted financial leverage values are slightly higher but follow the same trend, implying that goodwill adjustment has a minor impact on leverage ratios.

Return on Equity (ROE)

Reported ROE was negative at -4.21% in 2020, signaling a loss to shareholders, but sharply improved to 11.24% in 2021 and peaked at 22.27% in 2022. Subsequently, it declined to 13.28% in 2023 and further to 11.59% in 2024. The adjusted ROE values are consistently slightly higher than reported figures, reinforcing that goodwill adjustments enhance perceived profitability. The sharp improvement from 2020 to 2022 suggests strong growth or operational improvement, with moderate decline afterward possibly due to market or operational factors.

Return on Assets (ROA)

ROA mirrored the ROE trends, moving from a negative return of -2.31% in 2020 to 6.52% in 2021 and a peak of 13.76% in 2022 before decreasing to 8.17% in 2023 and 6.87% in 2024. The adjusted ROA, slightly higher than reported ROA, suggests that asset base adjustments increase apparent asset profitability. The pattern indicates improving asset utilization and profitability through 2022, followed by a moderation in returns.

Total assets

The reported total assets showed a relatively stable pattern from 2020 to 2021, with a slight decrease from 239,790 million US dollars to 239,535 million US dollars. In the subsequent years, total assets increased to peak at 261,632 million US dollars in 2023, followed by a minor decline to 256,938 million US dollars in 2024. The adjusted total assets reflect a similar trend, starting at 235,388 million US dollars in 2020 and rising to 256,910 million US dollars by 2023, before a slight reduction to 252,360 million US dollars in 2024.

Total asset turnover

The reported total asset turnover ratio exhibited a significant increase from 0.39 in 2020 to 0.65 in 2021, indicating improved efficiency in generating revenue from assets. This upward trend continued sharply in 2022, reaching 0.91, suggesting a heightened utilization of assets that year. However, the ratio decreased in 2023 to 0.75 and remained stable at that level through 2024. The adjusted total asset turnover mirrors this trajectory closely, progressing from 0.40 in 2020 to 0.66 in 2021, peaking at 0.93 in 2022, before declining to 0.77 in both 2023 and 2024.

Insights

The data indicates a general growth in asset base over the period, with total assets expanding notably between 2021 and 2023 before contracting slightly in the final year. This expansion corresponds with a considerable improvement in asset turnover ratios, especially marked in 2022, which may reflect enhanced operational efficiency or increased revenue generation relative to asset holdings. The subsequent decline and stabilization of the turnover ratios in 2023 and 2024 suggest a normalization or adjustment phase following peak efficiency levels. The consistency between reported and adjusted figures implies that goodwill adjustments have a minimal effect on the overall assessment of asset utilization and size.

The analysis of the annual financial data reveals several noteworthy trends regarding the company's assets, equity, and leverage over the five-year period under review.

Total Assets

Reported total assets showed a general upward trajectory from 239,790 million US dollars in 2020 to a peak of 261,632 million US dollars in 2023, followed by a slight decrease to 256,938 million in 2024. Adjusted total assets, which exclude goodwill, followed a similar pattern, increasing from 235,388 million US dollars in 2020 to 256,910 million in 2023 before declining to 252,360 million in 2024.

Stockholders’ Equity

Reported stockholders’ equity increased steadily from 131,688 million US dollars in 2020 to a high of 160,957 million in 2023. However, there was a noticeable decline in 2024, with equity falling to 152,318 million. The adjusted equity values followed the same trend, rising consistently except for a decrease in the final year from 156,235 million to 147,740 million US dollars.

Financial Leverage

Reported financial leverage demonstrated a declining trend from 1.82 in 2020 to the lowest value of 1.62 in 2022, indicating reduced reliance on debt relative to equity during this period. This ratio stabilized in 2023 at 1.63 but increased slightly to 1.69 in 2024. The adjusted financial leverage mirrored this pattern with a decrease from 1.85 in 2020 to 1.64 in 2022 and 2023, followed by an uptick to 1.71 in 2024.

Overall, the company experienced growth in asset base and equity until 2023, after which both metrics contracted somewhat in 2024. The decreasing financial leverage ratio up to 2022 suggested a strengthening equity position relative to debt, but the slight increase in leverage ratios in 2024 may indicate a marginally higher debt influence relative to equity in that year. The similar patterns observed between reported and adjusted measures suggest that goodwill adjustments did not significantly alter the overall financial trend interpretations during these years.

Total Stockholders’ Equity (Reported and Adjusted)

The reported total stockholders’ equity displayed a general upward trend from 2020 through 2023, increasing from 131,688 million US dollars in 2020 to a peak of 160,957 million US dollars in 2023. In 2024, however, there was a noticeable decline to 152,318 million US dollars. The adjusted total stockholders’ equity followed a similar pattern, rising consistently from 127,286 million US dollars in 2020 to 156,235 million US dollars in 2023, before declining to 147,740 million US dollars in 2024.

Return on Equity (ROE) - Reported and Adjusted

Reported ROE showed significant volatility over the period. It started negative at -4.21% in 2020, indicating a loss relative to equity, then sharply improved to 11.24% in 2021. The peak performance occurred in 2022 with a reported ROE of 22.27%, followed by a decline to 13.28% in 2023 and a further decrease to 11.59% in 2024. The adjusted ROE mirrored this trend with slightly higher values, beginning at -4.35% in 2020, rising to 11.6% in 2021, peaking at 22.95% in 2022, and subsequently dropping to 13.68% in 2023 and 11.95% in 2024.

Analysis Summary

The equity values indicate steady growth through the mid-period years, suggesting capital accumulation or retained earnings growth, before encountering a downturn in the most recent year. This decline could hint at asset revaluation, dividend distributions, or other equity-impacting events in 2024. The ROE metrics reflect a recovery from negative profitability in 2020 to strong returns in 2022, followed by a gradual reduction in profitability margins, although profitability remained positive and relatively robust above 11% in the final year. The close alignment between reported and adjusted figures implies that goodwill adjustments have limited impact on the overall equity and returns, maintaining consistent performance trends. Overall, the data suggest a period of recovery and profitability growth after initial losses, culminating in a recent period of moderation in both equity size and return efficiency.

The data reveal important trends in the company's asset base and profitability over the five-year period from 2020 to 2024, considering both reported and goodwill-adjusted figures.

Total Assets

Reported total assets showed a slight decrease from 239,790 million USD in 2020 to 239,535 million USD in 2021, followed by an increase peaking at 261,632 million USD in 2023, and then a moderate decline to 256,938 million USD in 2024. The adjusted total assets, which exclude goodwill, follow a very similar pattern but consistently show slightly lower values, reflecting the impact of goodwill on the asset base. Adjusted assets increased from 235,388 million USD in 2020 to 256,910 million USD in 2023, before settling at 252,360 million USD in 2024.

Return on Assets (ROA)

The reported ROA indicates an initial negative profitability of -2.31% in 2020, followed by a substantial turnaround to positive returns, rising to 6.52% in 2021 and peaking at 13.76% in 2022. However, the profitability declined to 8.17% in 2023 and further to 6.87% in 2024, suggesting some volatility and a lower but still positive earnings generation capacity in the most recent years.

The adjusted ROA closely mirrors the reported figures but is slightly higher across all years, implying that when excluding goodwill, the company's asset profitability is marginally better. The adjusted ROA follows the same trend: from -2.35% in 2020 to a peak of 14.02% in 2022, then a decrease to 8.32% in 2023 and 7.00% in 2024.

Insights

The overall trajectory of asset size shows moderate growth with some recent stabilization or slight decline. Profitability has significantly improved since 2020, indicating recovery from a difficult period or successful operational adjustments, but it has faced some moderation post-2022 peaks. The consistency between reported and adjusted figures suggests goodwill has a small but consistent negative impact on asset valuation and returns.