Stock Analysis on Net
Stock Analysis on Net

Chevron Corp. (NYSE:CVX)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Adjustments to Financial Statements: Removal of Goodwill

Chevron Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 261,632 257,709 239,535 239,790 237,428
Less: Goodwill 4,722 4,722 4,385 4,402 4,463
Total assets (adjusted) 256,910 252,987 235,150 235,388 232,965
Adjustment to Total Chevron Corporation Stockholders’ Equity
Total Chevron Corporation stockholders’ equity (as reported) 160,957 159,282 139,067 131,688 144,213
Less: Goodwill 4,722 4,722 4,385 4,402 4,463
Total Chevron Corporation stockholders’ equity (adjusted) 156,235 154,560 134,682 127,286 139,750

Based on: 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), 10-K (reporting date: 2019-12-31).

Chevron Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Chevron Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 0.75 0.91 0.65 0.39 0.59
Adjusted total asset turnover 0.77 0.93 0.66 0.40 0.60
Financial Leverage
Reported financial leverage 1.63 1.62 1.72 1.82 1.65
Adjusted financial leverage 1.64 1.64 1.75 1.85 1.67
Return on Equity (ROE)
Reported ROE 13.28% 22.27% 11.24% -4.21% 2.03%
Adjusted ROE 13.68% 22.95% 11.60% -4.35% 2.09%
Return on Assets (ROA)
Reported ROA 8.17% 13.76% 6.52% -2.31% 1.23%
Adjusted ROA 8.32% 14.02% 6.64% -2.35% 1.26%

Based on: 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), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Chevron Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Chevron Corp. adjusted financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Chevron Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Chevron Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Chevron Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 196,913 235,717 155,606 94,471 139,865
Total assets 261,632 257,709 239,535 239,790 237,428
Activity Ratio
Total asset turnover1 0.75 0.91 0.65 0.39 0.59
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales and other operating revenues 196,913 235,717 155,606 94,471 139,865
Adjusted total assets 256,910 252,987 235,150 235,388 232,965
Activity Ratio
Adjusted total asset turnover2 0.77 0.93 0.66 0.40 0.60

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 196,913 ÷ 261,632 = 0.75

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 196,913 ÷ 256,910 = 0.77

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Chevron Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 261,632 257,709 239,535 239,790 237,428
Total Chevron Corporation stockholders’ equity 160,957 159,282 139,067 131,688 144,213
Solvency Ratio
Financial leverage1 1.63 1.62 1.72 1.82 1.65
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 256,910 252,987 235,150 235,388 232,965
Adjusted total Chevron Corporation stockholders’ equity 156,235 154,560 134,682 127,286 139,750
Solvency Ratio
Adjusted financial leverage2 1.64 1.64 1.75 1.85 1.67

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Total Chevron Corporation stockholders’ equity
= 261,632 ÷ 160,957 = 1.63

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Chevron Corporation stockholders’ equity
= 256,910 ÷ 156,235 = 1.64

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Chevron Corp. adjusted financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 21,369 35,465 15,625 (5,543) 2,924
Total Chevron Corporation stockholders’ equity 160,957 159,282 139,067 131,688 144,213
Profitability Ratio
ROE1 13.28% 22.27% 11.24% -4.21% 2.03%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 21,369 35,465 15,625 (5,543) 2,924
Adjusted total Chevron Corporation stockholders’ equity 156,235 154,560 134,682 127,286 139,750
Profitability Ratio
Adjusted ROE2 13.68% 22.95% 11.60% -4.35% 2.09%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income (loss) attributable to Chevron Corporation ÷ Total Chevron Corporation stockholders’ equity
= 100 × 21,369 ÷ 160,957 = 13.28%

2 Adjusted ROE = 100 × Net income (loss) attributable to Chevron Corporation ÷ Adjusted total Chevron Corporation stockholders’ equity
= 100 × 21,369 ÷ 156,235 = 13.68%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Chevron Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 21,369 35,465 15,625 (5,543) 2,924
Total assets 261,632 257,709 239,535 239,790 237,428
Profitability Ratio
ROA1 8.17% 13.76% 6.52% -2.31% 1.23%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 21,369 35,465 15,625 (5,543) 2,924
Adjusted total assets 256,910 252,987 235,150 235,388 232,965
Profitability Ratio
Adjusted ROA2 8.32% 14.02% 6.64% -2.35% 1.26%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income (loss) attributable to Chevron Corporation ÷ Total assets
= 100 × 21,369 ÷ 261,632 = 8.17%

2 Adjusted ROA = 100 × Net income (loss) attributable to Chevron Corporation ÷ Adjusted total assets
= 100 × 21,369 ÷ 256,910 = 8.32%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Chevron Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.