Stock Analysis on Net
Stock Analysis on Net

Chevron Corp. (NYSE:CVX)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Chevron Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal 895 1,723 174 (182) (73)
State and local 211 482 222 65 153
United States 1,106 2,205 396 (117) 80
International 6,745 9,738 4,854 1,833 4,577
Current 7,851 11,943 5,250 1,716 4,657
U.S. federal 666 2,240 1,004 (1,315) (1,074)
State and local 1 39 202 (152) (172)
United States 667 2,279 1,206 (1,467) (1,246)
International (345) (156) (506) (2,141) (720)
Deferred 322 2,123 700 (3,608) (1,966)
Income tax expense (benefit) 8,173 14,066 5,950 (1,892) 2,691

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Chevron Corp. current increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Chevron Corp. deferred increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Chevron Corp. income tax expense (benefit) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Effective Income Tax Rate (EITR)

Chevron Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 27.60% 28.30% 27.50% 25.40% 48.60%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Chevron Corp. effective income tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Components of Deferred Tax Assets and Liabilities

Chevron Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Foreign tax credits 13,560 12,599 11,718 10,585 9,840
Asset retirement obligations/environmental reserves 4,543 4,518 4,553 4,721 4,329
Employee benefits 1,785 2,087 3,037 3,856 3,454
Deferred credits 268 446 996 1,056 1,083
Tax loss carryforwards 3,492 3,887 4,175 6,701 5,262
Other accrued liabilities 1,416 746 239 228 441
Inventory 126 219 289 633 662
Operating leases 1,479 1,134 1,255 1,234 1,211
Miscellaneous 3,652 4,057 3,657 3,685 2,796
Deferred tax assets, gross 30,321 29,693 29,919 32,699 29,078
Deferred tax assets valuation allowance (20,416) (19,532) (17,651) (17,762) (15,965)
Deferred tax assets, net 9,905 10,161 12,268 14,937 13,113
Properties, plant and equipment (20,303) (18,295) (17,169) (16,603) (17,251)
Investments and other (4,263) (4,492) (4,105) (5,617) (5,372)
Deferred tax liabilities (24,566) (22,787) (21,274) (22,220) (22,623)
Deferred taxes, net (14,661) (12,626) (9,006) (7,283) (9,510)

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).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Chevron Corp. deferred tax assets, gross decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax assets, net Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Chevron Corp. deferred tax assets, net decreased from 2021 to 2022 and from 2022 to 2023.
Deferred taxes, net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Chevron Corp. deferred taxes, net decreased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Chevron Corp., deferred tax assets and liabilities, classification

US$ in millions

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Noncurrent deferred tax assets (included in Deferred charges and other assets) 4,169 4,505 5,659 5,286 4,178
Noncurrent deferred income tax liabilities 18,830 17,131 14,665 12,569 13,688

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).

Item Description The company
Noncurrent deferred tax assets (included in Deferred charges and other assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Chevron Corp. noncurrent deferred tax assets (included in Deferred charges and other assets) decreased from 2021 to 2022 and from 2022 to 2023.
Noncurrent deferred income tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Chevron Corp. noncurrent deferred income tax liabilities increased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 4,169 4,505 5,659 5,286 4,178
Total assets (adjusted) 257,463 253,204 233,876 234,504 233,250
Adjustment to Total Liabilities
Total liabilities (as reported) 99,703 97,467 99,595 107,064 92,220
Less: Noncurrent deferred tax liabilities, net 18,830 17,131 14,665 12,569 13,688
Total liabilities (adjusted) 80,873 80,336 84,930 94,495 78,532
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: Net deferred tax assets (liabilities) (14,661) (12,626) (9,006) (7,283) (9,510)
Total Chevron Corporation stockholders’ equity (adjusted) 175,618 171,908 148,073 138,971 153,723
Adjustment to Net Income (loss) Attributable To Chevron Corporation
Net income (loss) attributable to Chevron Corporation (as reported) 21,369 35,465 15,625 (5,543) 2,924
Add: Deferred income tax expense (benefit) 322 2,123 700 (3,608) (1,966)
Net income (loss) attributable to Chevron Corporation (adjusted) 21,691 37,588 16,325 (9,151) 958

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 Deferred Taxes (Summary)

Chevron Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 10.85% 15.05% 10.04% -5.87% 2.09%
Adjusted net profit margin 11.02% 15.95% 10.49% -9.69% 0.68%
Total Asset Turnover
Reported total asset turnover 0.75 0.91 0.65 0.39 0.59
Adjusted total asset turnover 0.76 0.93 0.67 0.40 0.60
Financial Leverage
Reported financial leverage 1.63 1.62 1.72 1.82 1.65
Adjusted financial leverage 1.47 1.47 1.58 1.69 1.52
Return on Equity (ROE)
Reported ROE 13.28% 22.27% 11.24% -4.21% 2.03%
Adjusted ROE 12.35% 21.87% 11.02% -6.58% 0.62%
Return on Assets (ROA)
Reported ROA 8.17% 13.76% 6.52% -2.31% 1.23%
Adjusted ROA 8.42% 14.84% 6.98% -3.90% 0.41%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Chevron Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
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 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted 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 adjusted 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 Net Profit Margin

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
Sales and other operating revenues 196,913 235,717 155,606 94,471 139,865
Profitability Ratio
Net profit margin1 10.85% 15.05% 10.04% -5.87% 2.09%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 21,691 37,588 16,325 (9,151) 958
Sales and other operating revenues 196,913 235,717 155,606 94,471 139,865
Profitability Ratio
Adjusted net profit margin2 11.02% 15.95% 10.49% -9.69% 0.68%

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 Net profit margin = 100 × Net income (loss) attributable to Chevron Corporation ÷ Sales and other operating revenues
= 100 × 21,369 ÷ 196,913 = 10.85%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Chevron Corporation ÷ Sales and other operating revenues
= 100 × 21,691 ÷ 196,913 = 11.02%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Chevron Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenues 196,913 235,717 155,606 94,471 139,865
Adjusted total assets 257,463 253,204 233,876 234,504 233,250
Activity Ratio
Adjusted total asset turnover2 0.76 0.93 0.67 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 ÷ 257,463 = 0.76

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 257,463 253,204 233,876 234,504 233,250
Adjusted total Chevron Corporation stockholders’ equity 175,618 171,908 148,073 138,971 153,723
Solvency Ratio
Adjusted financial leverage2 1.47 1.47 1.58 1.69 1.52

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
= 257,463 ÷ 175,618 = 1.47

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 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 21,691 37,588 16,325 (9,151) 958
Adjusted total Chevron Corporation stockholders’ equity 175,618 171,908 148,073 138,971 153,723
Profitability Ratio
Adjusted ROE2 12.35% 21.87% 11.02% -6.58% 0.62%

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 × Adjusted net income (loss) attributable to Chevron Corporation ÷ Adjusted total Chevron Corporation stockholders’ equity
= 100 × 21,691 ÷ 175,618 = 12.35%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 21,691 37,588 16,325 (9,151) 958
Adjusted total assets 257,463 253,204 233,876 234,504 233,250
Profitability Ratio
Adjusted ROA2 8.42% 14.84% 6.98% -3.90% 0.41%

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 × Adjusted net income (loss) attributable to Chevron Corporation ÷ Adjusted total assets
= 100 × 21,691 ÷ 257,463 = 8.42%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted 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.