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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 256,938 261,632 257,709 239,535 239,790
Less: Goodwill 4,578 4,722 4,722 4,385 4,402
Total assets (adjusted) 252,360 256,910 252,987 235,150 235,388
Adjustment to Total Chevron Corporation Stockholders’ Equity
Total Chevron Corporation stockholders’ equity (as reported) 152,318 160,957 159,282 139,067 131,688
Less: Goodwill 4,578 4,722 4,722 4,385 4,402
Total Chevron Corporation stockholders’ equity (adjusted) 147,740 156,235 154,560 134,682 127,286

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).

Chevron Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Chevron Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover
Reported total asset turnover 0.75 0.75 0.91 0.65 0.39
Adjusted total asset turnover 0.77 0.77 0.93 0.66 0.40
Financial Leverage
Reported financial leverage 1.69 1.63 1.62 1.72 1.82
Adjusted financial leverage 1.71 1.64 1.64 1.75 1.85
Return on Equity (ROE)
Reported ROE 11.59% 13.28% 22.27% 11.24% -4.21%
Adjusted ROE 11.95% 13.68% 22.95% 11.60% -4.35%
Return on Assets (ROA)
Reported ROA 6.87% 8.17% 13.76% 6.52% -2.31%
Adjusted ROA 7.00% 8.32% 14.02% 6.64% -2.35%

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).

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 deteriorated from 2022 to 2023 and from 2023 to 2024.
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 increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Chevron Corp. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Chevron Corp. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Chevron Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 193,414 196,913 235,717 155,606 94,471
Total assets 256,938 261,632 257,709 239,535 239,790
Activity Ratio
Total asset turnover1 0.75 0.75 0.91 0.65 0.39
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales and other operating revenues 193,414 196,913 235,717 155,606 94,471
Adjusted total assets 252,360 256,910 252,987 235,150 235,388
Activity Ratio
Adjusted total asset turnover2 0.77 0.77 0.93 0.66 0.40

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 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 193,414 ÷ 256,938 = 0.75

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 193,414 ÷ 252,360 = 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 deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 256,938 261,632 257,709 239,535 239,790
Total Chevron Corporation stockholders’ equity 152,318 160,957 159,282 139,067 131,688
Solvency Ratio
Financial leverage1 1.69 1.63 1.62 1.72 1.82
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 252,360 256,910 252,987 235,150 235,388
Adjusted total Chevron Corporation stockholders’ equity 147,740 156,235 154,560 134,682 127,286
Solvency Ratio
Adjusted financial leverage2 1.71 1.64 1.64 1.75 1.85

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 Financial leverage = Total assets ÷ Total Chevron Corporation stockholders’ equity
= 256,938 ÷ 152,318 = 1.69

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Chevron Corporation stockholders’ equity
= 252,360 ÷ 147,740 = 1.71

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 increased from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 17,661 21,369 35,465 15,625 (5,543)
Total Chevron Corporation stockholders’ equity 152,318 160,957 159,282 139,067 131,688
Profitability Ratio
ROE1 11.59% 13.28% 22.27% 11.24% -4.21%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 17,661 21,369 35,465 15,625 (5,543)
Adjusted total Chevron Corporation stockholders’ equity 147,740 156,235 154,560 134,682 127,286
Profitability Ratio
Adjusted ROE2 11.95% 13.68% 22.95% 11.60% -4.35%

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 ROE = 100 × Net income (loss) attributable to Chevron Corporation ÷ Total Chevron Corporation stockholders’ equity
= 100 × 17,661 ÷ 152,318 = 11.59%

2 Adjusted ROE = 100 × Net income (loss) attributable to Chevron Corporation ÷ Adjusted total Chevron Corporation stockholders’ equity
= 100 × 17,661 ÷ 147,740 = 11.95%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Chevron Corp. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 17,661 21,369 35,465 15,625 (5,543)
Total assets 256,938 261,632 257,709 239,535 239,790
Profitability Ratio
ROA1 6.87% 8.17% 13.76% 6.52% -2.31%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 17,661 21,369 35,465 15,625 (5,543)
Adjusted total assets 252,360 256,910 252,987 235,150 235,388
Profitability Ratio
Adjusted ROA2 7.00% 8.32% 14.02% 6.64% -2.35%

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 ROA = 100 × Net income (loss) attributable to Chevron Corporation ÷ Total assets
= 100 × 17,661 ÷ 256,938 = 6.87%

2 Adjusted ROA = 100 × Net income (loss) attributable to Chevron Corporation ÷ Adjusted total assets
= 100 × 17,661 ÷ 252,360 = 7.00%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Chevron Corp. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.