Chevron Corp. (NYSE:CVX)

Current Income Tax Expense

The current income tax expense exhibited a rising trend from 2020 to 2022, increasing significantly from 1,716 million US dollars in 2020 to a peak of 11,943 million US dollars in 2022. In 2023, the current tax expense decreased notably to 7,851 million US dollars but showed a slight recovery to 8,517 million US dollars in 2024. This pattern suggests variable current tax obligations, with a peak in 2022 followed by a reduction and moderate stabilization in subsequent years.

Deferred Income Tax Expense

The deferred income tax expense showed a contrasting trend compared to the current tax expense. It was negative in 2020 at -3,608 million US dollars, indicating a deferred tax benefit during that period. From 2021 onwards, it turned positive and gradually increased, reaching 2,123 million US dollars in 2022. However, in 2023, the deferred tax expense significantly decreased to 322 million US dollars, then rose again to 1,240 million US dollars in 2024. This fluctuation highlights variability in deferred tax liabilities or assets, with considerable swings affecting overall tax expenses.

Overall Income Tax Expense (Benefit)

The combined income tax expense, which includes both current and deferred components, mirrors the trends observed in its constituents. It shifted from a tax benefit of -1,892 million US dollars in 2020 to a considerable expense of 14,066 million US dollars in 2022, marking the highest tax expense over the period. Following this peak, the total income tax expense decreased to 8,173 million US dollars in 2023, then increased again to 9,757 million US dollars in 2024. The data indicate a period of significant tax cost escalation until 2022, followed by fluctuations reflecting changes in both current and deferred tax accounting.

U.S. Statutory Federal Income Tax Rate

The statutory federal income tax rate remained constant at 21% throughout the entire five-year period. There was no change observed in this rate from 2020 through 2024, indicating a stable regulatory environment regarding the statutory tax rate applied to income.

Effective Income Tax Rate

The effective income tax rate exhibited an upward trend over the analyzed period. Beginning at 25.4% in 2020, the rate increased to 27.5% in 2021 and continued a moderate rise to 28.3% in 2022. A slight decline occurred in 2023, lowering the rate to 27.6%, followed by a substantial jump in 2024, reaching 35.5%. This indicates growing tax burdens beyond the statutory rate, reflecting possible increases in non-deductible expenses, changes in tax planning strategies, or jurisdictional impacts affecting the overall effective tax burden.

Comparative Insights

Throughout the observed period, the effective income tax rate consistently exceeded the statutory rate, with the gap widening notably in 2024. The steady statutory rate combined with the fluctuating and ultimately increasing effective rate suggests that factors other than statutory tax law contributed significantly to tax expense variations. This disparity may indicate changes in earnings composition, tax credits, or adjustments in the company's financial or operational activities influencing taxable income.

The financial data exhibits a variety of trends reflecting changes in liabilities, assets, and tax-related items over the five-year period.

Foreign tax credits (US$ in millions)

There is a consistent and notable increase in foreign tax credits from 10,585 million in 2020 to 15,261 million in 2024, indicating growing tax credits accumulated overseas.

Asset retirement obligations/environmental reserves (US$ in millions)

This liability fluctuates slightly but shows a declining trend overall, decreasing from 4,721 million in 2020 to 4,220 million in 2024, which may reflect changes in estimated costs or remediation activities.

Employee benefits (US$ in millions)

The value decreases significantly from 3,856 million in 2020 to 2,050 million in 2024, with the lowest point at 1,785 million in 2023, suggesting reductions in employee-related obligations or changes in benefit plans.

Deferred credits (US$ in millions)

The deferred credits decrease sharply from 1,056 million in 2020 to 292 million in 2024, indicating diminishing amounts of revenues or income received but not yet earned.

Tax loss carryforwards (US$ in millions)

There is a gradual decline from 6,701 million in 2020 to 3,034 million in 2024, suggesting utilization of past tax losses or changes in tax planning strategies.

Other accrued liabilities (US$ in millions)

These liabilities rise substantially from 228 million in 2020 to a peak of 1,416 million in 2023, before slightly decreasing to 1,137 million in 2024, indicating an increase in obligations accrued but not yet paid.

Inventory (US$ in millions)

The inventory level drops sharply from 633 million in 2020 to 68 million in 2024, pointing to either decreased inventory holdings or changes in inventory valuation and management practices.

Operating leases (US$ in millions)

The balance remains relatively stable with some fluctuations, increasing from 1,234 million in 2020 to 1,352 million in 2024, reflecting ongoing lease obligations with minor variability.

Miscellaneous (US$ in millions)

This category fluctuates moderately around the 3,600 to 4,200 million range, reaching its highest value of 4,180 million in 2024, indicating relatively steady miscellaneous items with slight growth.

Deferred tax assets, gross (US$ in millions)

The gross deferred tax assets show a mild decline from 32,699 million in 2020 to 31,594 million in 2024, with minor fluctuations, indicating a relatively stable level of temporary differences resulting in assets.

Deferred tax assets valuation allowance (US$ in millions)

This allowance steadily increases in magnitude (more negative), from -17,762 million in 2020 to -21,313 million in 2024, which implies growing reserves against deferred tax assets due to potential non-realizability.

Deferred tax assets, net (US$ in millions)

The net deferred tax assets decline significantly from 14,937 million in 2020 to 10,281 million in 2024, reflecting the combined effect of stable gross assets and increasing valuation allowances.

Properties, plant and equipment (US$ in millions)

This item consistently increases in its negative magnitude, from -16,603 million in 2020 to -20,648 million in 2024, which suggests increasing accumulated depreciation or impairment charges.

Investments and other (US$ in millions)

Values oscillate within the negative range, showing an initial decrease in negative value from -5,617 million in 2020 to -4,105 million in 2021, followed by variability and a larger negative balance again at -5,254 million in 2024, indicating fluctuating investment valuations or disposals.

Deferred tax liabilities (US$ in millions)

This liability escalates steadily from -22,220 million in 2020 to -25,902 million in 2024, signifying increased obligations for taxes on temporary differences.

Deferred income taxes, net (US$ in millions)

The net deferred income tax liability grows substantially in negative terms, from -7,283 million in 2020 to -15,621 million in 2024, revealing a strengthening tax liability position.

Noncurrent Deferred Tax Assets

There is a declining trend in noncurrent deferred tax assets over the five-year period. The value decreased from 5,286 million US dollars at the end of 2020 to 3,516 million US dollars by the end of 2024. This represents a reduction of approximately 33.5%. The decline suggests a possible decrease in tax benefits recognized as assets, which may indicate changes in anticipated future taxable income or adjustments in tax regulations.

Noncurrent Deferred Income Tax Liabilities

Noncurrent deferred income tax liabilities show a consistent upward trend during the same timeframe. The liabilities increased from 12,569 million US dollars in 2020 to 19,137 million US dollars in 2024. This is an increase of around 52.2%. The rising deferred tax liabilities could reflect growing temporary differences that will result in taxable amounts in future periods, potentially due to increasing property, plant, equipment values, or other timing differences.

Overall Tax Position

The simultaneous decrease in deferred tax assets alongside an increase in deferred tax liabilities suggests a change in the company's deferred tax balance sheet position, with liabilities growing at a faster pace than assets. This shift might impact the future tax expense and cash flow, depending on how these deferred amounts reverse over time.

The financial data reveals several important trends in the company's reported and adjusted figures over the five-year period ending in 2024.

Total Assets

Reported total assets showed a slight fluctuation, starting at approximately 239.8 billion USD in 2020 and reaching a peak in 2023 at around 261.6 billion USD, before decreasing slightly to 256.9 billion USD in 2024. Adjusted total assets followed a similar pattern, with values consistently lower than reported assets but closely tracking their movement, indicating that adjustments did not drastically alter the overall asset trend.

Total Liabilities

Reported total liabilities decreased from about 107.1 billion USD in 2020 to 97.5 billion USD in 2022, then increased modestly to 103.8 billion USD by 2024. The adjusted liabilities show a more pronounced decrease, dropping from approximately 94.5 billion USD in 2020 to 80.3 billion USD in 2022, with a small rise thereafter to 84.6 billion USD in 2024. This suggests the adjustments consistently reduce the liabilities reported, possibly reflecting deferred tax considerations or other timing differences.

Stockholders’ Equity

Reported stockholders’ equity witnessed steady growth from 131.7 billion USD in 2020 to a high of 160.9 billion USD in 2023, followed by a decline to 152.3 billion USD in 2024. Adjusted equity values are consistently higher than reported ones, growing from 139.0 billion USD in 2020 to 175.6 billion USD in 2023 before falling to 167.9 billion USD in 2024. This pattern indicates that stockholders’ equity is positively impacted by the adjustments, and that equity strength improved substantially until 2023 but eased somewhat in the final year.

Net Income (Loss) Attributable to Chevron Corporation

Reported net income showed a significant turnaround, starting with a substantial loss of 5.5 billion USD in 2020, progressing to strong profits peaking at 35.5 billion USD in 2022, then declining over the next two years to 17.7 billion USD in 2024. Adjusted net income mirrors this trend, with greater initial losses (9.2 billion USD in 2020) and stronger peak profits (37.6 billion USD in 2022), followed by declining but still substantial earnings of 18.9 billion USD in 2024. The adjustments appear to amplify both negative and positive results, which may reflect the timing and recognition of deferred tax impacts on reported profitability.

Overall, the data suggests the company experienced notable growth in asset and equity bases through 2023, with a slight contraction in 2024. Liabilities generally declined through 2022 but partially rebounded thereafter. Profitability recovered from a significant loss in 2020 to robust earnings in subsequent years, although with some tapering in the final periods. The consistent differences between reported and adjusted figures underline the economic impact of tax and accounting adjustments, which tend to inflate equity and income metrics while reducing liabilities compared to reported numbers.

The financial data reflects notable fluctuations and overall improvement in performance metrics over the analyzed periods. The transition from 2020 to subsequent years marks a recovery from negative profitability and efficiency measures to predominantly positive values, though some moderation is observed toward the latest period.

Profit Margins

Reported net profit margin exhibited a significant turnaround, rising from a negative figure of -5.87% in 2020 to a peak of 15.05% in 2022 before gradually declining to 9.13% by 2024. The adjusted net profit margin follows a similar trend but consistently shows slightly higher values than reported margins, reflecting adjustments related to income tax influences and suggesting that the core profitability is somewhat stronger than initially reported.

Total Asset Turnover

There is a clear upward trend in asset turnover ratios suggesting improved asset utilization efficiency. Reported total asset turnover increased from 0.39 in 2020 to 0.91 in 2022 but slightly retreated and stabilized at 0.75 in 2023 and 2024. Adjusted turnover ratios are marginally higher than reported, maintaining a stable relationship. This pattern may indicate a peak in asset deployment effectiveness in 2022, with a more conservative efficiency in subsequent years.

Financial Leverage

Both reported and adjusted financial leverage ratios show a declining trend from 2020 through 2022, indicating a reduction in the company's leverage and potentially lower financial risk. Reported leverage drops from 1.82 to 1.62, and adjusted leverage from 1.69 to 1.47. Post-2022, there is a moderate increase in leverage ratios, suggesting a cautious increase in borrowings or liabilities relative to equity but remaining below earlier levels, signaling overall conservative financial management.

Return on Equity (ROE)

ROE figures demonstrate considerable volatility, beginning with negative returns in 2020 followed by strong improvement peaking in 2022 at over 22% (reported) and nearly 22% (adjusted). This is followed by a noticeable decline to values around 11–13% in the last two years. Adjusted ROE consistently appears lower than the reported but supports the same trend. This pattern underscores cyclical profitability with peak performance in 2022 and a subsequent moderation.

Return on Assets (ROA)

Similar to ROE, the ROA metrics start with negative returns in 2020 and improve significantly through 2022. Reported ROA ascended to 13.76% in 2022 before decreasing to 6.87% in 2024. Adjusted figures track this closely but remain marginally higher, peaking at 14.84% in 2022. The slight decline post-2022 suggests diminished asset productivity or profitability relative to total asset base, consistent with the earlier noted trends in asset turnover and profit margins.

In summary, the data indicates a recovery phase from 2020 losses toward enhanced profitability and operational efficiency peaking around 2022, followed by a period of stabilization or mild decline. The adjusted figures suggest that reported performance may understate underlying profitability and efficiency slightly due to tax and accounting adjustments. Financial leverage trends imply a prudent approach to capital structure, initially deleveraging before modestly increasing leverage in recent years. Overall, the company exhibits resilient financial recovery with cautious management of assets and liabilities in the face of varying market conditions.

Net Income Trends

The reported net income attributable to the corporation exhibited a significant turnaround from a loss of $5,543 million in 2020 to substantial profits in the following years, peaking at $35,465 million in 2022. Thereafter, it declined to $21,369 million in 2023 and further to $17,661 million in 2024, indicating some volatility but maintaining positive profitability after 2020.

The adjusted net income shows a similar pattern with a larger initial loss of $9,151 million in 2020, followed by consecutive increases reaching a maximum of $37,588 million in 2022. Subsequent years saw a decline to $21,691 million in 2023 and $18,901 million in 2024. The adjusted figures consistently remain higher than the reported figures, suggesting adjustments have a positive impact on income presentation.

Net Profit Margin Analysis

Both reported and adjusted net profit margins mirror the income trends, beginning with negative margins of -5.87% and -9.69% in 2020 respectively, indicating unprofitable operations that year. Margins improved significantly in 2021, rising to 10.04% (reported) and 10.49% (adjusted), and further peaked in 2022 at 15.05% (reported) and 15.95% (adjusted).

From 2023 onwards, margins declined but remained positive; in 2023, reported margin was 10.85% and adjusted margin slightly higher at 11.02%. In 2024, reported margins further decreased to 9.13%, with adjusted margins at 9.77%, indicating a contraction in profitability relative to revenues compared to peak levels in 2022.

Comparative Observations

Adjusted net income and profit margins consistently exceed reported values in every year, reflecting the effect of deferred income tax adjustments or other accounting adjustments that enhance profitability metrics.

The peak performance occurred in 2022, after which a decline is observable in both income and margin metrics through to 2024, suggesting potential external or internal factors impacting earnings and operational efficiency during these periods.

Reported Total Assets

The reported total assets demonstrated an initial slight decline from 239,790 million US dollars in 2020 to 239,535 million in 2021. Subsequently, the assets increased significantly reaching a peak of 261,632 million in 2023 before slightly receding to 256,938 million in 2024. This pattern illustrates a general upward trend in asset base with a minor decrease after a peak year.

Adjusted Total Assets

The adjusted total assets followed a similar trajectory as the reported values but are consistently slightly lower. Starting at 234,504 million in 2020, they dipped marginally to 233,876 million in 2021 and then rose steadily to 257,463 million in 2023. A slight decrease to 253,422 million occurred in 2024. The adjustment appears to have trimmed the asset figures but retains the overall growth pattern.

Reported Total Asset Turnover

The reported total asset turnover ratio showed a marked improvement from 0.39 in 2020 to a significant increase reaching 0.91 by 2022. However, this was followed by a reduction to 0.75 in both 2023 and 2024, indicating a decline in asset efficiency after the peak year but maintaining a higher turnover than initial years.

Adjusted Total Asset Turnover

The adjusted total asset turnover closely mirrors the reported turnover ratio with values slightly higher each year. It rose from 0.40 in 2020 to a peak of 0.93 in 2022 before decreasing to 0.76 for 2023 and 2024. This suggests that after accounting for deferred taxes or other adjustments, asset utilization efficiency trends remain consistent with reported figures but reflect minor enhancements.

Summary

Overall, the assets—both reported and adjusted—exhibited growth over the five-year period with a peak around 2023 followed by a moderate decline. Asset turnover ratios improved substantially up to 2022, indicating enhanced revenue generation relative to asset size, but declined afterward while still sustaining better efficiency compared to early years. The adjustments to the assets and turnover ratios consistently produce slightly lower asset bases and slightly higher turnover ratios, respectively, highlighting the impact of deferred income tax adjustments on financial metrics without altering fundamental trend directions.

Total Assets

The reported total assets show a generally increasing trend from 239,790 million US dollars in 2020 to a peak of 261,632 million US dollars in 2023, followed by a slight decline to 256,938 million US dollars in 2024. Adjusted total assets follow a similar pattern, increasing from 234,504 million US dollars in 2020 to 257,463 million US dollars in 2023, then decreasing slightly to 253,422 million US dollars in 2024. Overall, the asset base expanded over the five-year period with a modest reduction in the final year.

Stockholders’ Equity

The reported total stockholders' equity increased steadily from 131,688 million US dollars in 2020 to 160,957 million US dollars in 2023, before declining to 152,318 million US dollars in 2024. Adjusted stockholders’ equity shows a stronger growth trajectory, rising from 138,971 million US dollars in 2020 to a maximum of 175,618 million US dollars in 2023, then decreasing to 167,939 million US dollars in 2024. This indicates an overall improvement in equity value with a noticeable drop in the final year across both reported and adjusted figures, with adjusted equity consistently higher than reported equity.

Financial Leverage

The reported financial leverage ratio demonstrates a downward trend from 1.82 in 2020 to 1.62 in 2022, followed by relative stability around 1.63 in 2023 and a slight increase to 1.69 in 2024. The adjusted financial leverage ratio shows a similar downward trend from 1.69 in 2020 to 1.47 in 2022 and 2023, with a marginal increase to 1.51 in 2024. The consistent lower levels of adjusted financial leverage compared to reported figures suggest that the adjustments to income tax have a modest impact in reducing the leverage ratio. The overall trend reflects a gradual improvement in the company’s capital structure, characterized by reduced reliance on debt over the initial years, with slight reversal in the last year.

The analysis of the financial data over the five-year period reveals several notable trends concerning profitability, equity, and returns.

Net Income (Loss)

The reported net income attributable to the company showed a significant turnaround from a loss of $5,543 million in 2020 to a peak profit of $35,465 million in 2022. This was followed by a decline in profits in 2023 and 2024, where net income decreased to $21,369 million and $17,661 million respectively. The adjusted net income reflects a similar trend but with slightly higher absolute values, particularly notable in the loss reported in 2020 at $9,151 million and the peak profit of $37,588 million in 2022. The adjusted figures suggest that some adjustments to reported figures impact the assessment of profitability, particularly in years with losses and peaks.

Stockholders’ Equity

The reported total stockholders’ equity increased steadily from $131,688 million in 2020 to $160,957 million in 2023, though it slightly decreased to $152,318 million in 2024. The adjusted equity follows a similar upward trajectory but with consistently higher values each year, peaking at $175,618 million in 2023 before a slight reduction to $167,939 million in 2024. This pattern indicates a generally strengthening equity base over the period, with adjustments reflecting a more robust capital position.

Return on Equity (ROE)

The reported ROE transitioned from a negative return of -4.21% in 2020 to a high of 22.27% in 2022, followed by a decline to 13.28% in 2023 and further to 11.59% in 2024. The adjusted ROE presents a consistent trend but with slightly lower values, beginning at -6.58% in 2020, peaking at 21.87% in 2022, and decreasing to 12.35% and 11.25% in the subsequent years. This pattern suggests improved profitability and operational efficiency through 2022, with subsequent moderation in returns.

In summary, the financial data reveals a strong recovery in profitability from 2020 losses through 2022 peaks, accompanied by growth in equity and enhanced returns on equity. However, the declining trends in net income and ROE after 2022 indicate a contraction phase or challenges affecting profitability. The adjusted figures emphasize a slightly more conservative position with greater equity and less optimistic profitability metrics, illustrating the impact of the adjustments on the financial perspective.

The financial data reveals several notable trends in the company's performance over the five-year period analyzed.

Net Income

The reported net income shows a significant turnaround from a substantial loss of US$ -5,543 million in 2020 to a peak profit of US$ 35,465 million in 2022. Subsequently, there is a decline to US$ 21,369 million in 2023 and further to US$ 17,661 million in 2024, indicating volatility but maintaining profitability after 2020.

The adjusted net income follows a similar trajectory but with consistently larger losses and gains than the reported figures. The adjusted losses in 2020 are notably higher at US$ -9,151 million, and adjusted profits reach as high as US$ 37,588 million in 2022 before declining to US$ 18,901 million in 2024. This suggests that adjustments related to income tax and other factors materially impact reported results, especially in extreme years.

Total Assets

Reported total assets show moderate growth from US$ 239,790 million in 2020 to US$ 261,632 million in 2023, followed by a slight decrease to US$ 256,938 million in 2024. The adjusted total assets mirror this pattern but remain slightly lower than reported values throughout the period, indicating that adjustments reduce asset values marginally.

Return on Assets (ROA)

Reported ROA starts negative at -2.31% in 2020, reflecting the net loss of that year, and then improves substantially to 13.76% in 2022, consistent with peak profitability. However, it declines thereafter to 6.87% in 2024, paralleling the net income trend.

The adjusted ROA shows a steeper negative at -3.9% in 2020 and a higher peak at 14.84% in 2022 compared to the reported ROA, indicating that adjustments amplify both the downturn and the peak. The adjusted ROA also decreases less sharply at the end, ending at 7.46% in 2024.

Overall, the data depicts a recovery from significant losses in 2020 towards strong profitability in 2021 and 2022, followed by a decrease but sustained positive profitability in 2023 and 2024. Asset bases have generally increased but show minor contraction in the last year. Adjusted figures indicate that tax and deferred income adjustments play a material role in influencing income and returns, magnifying both negative and positive financial results.