Chevron Corp. (NYSE:CVX)

Crude Oil and Products

There is a consistent upward trend in the value of crude oil and products over the observed periods. Starting at 3,576 million US dollars in 2020, the value increased steadily each year, reaching 6,490 million US dollars by 2024. This represents a significant growth, almost doubling over the five-year span, indicating a strong performance or increased valuation in this segment.

Chemicals

The chemicals segment shows more variability. After an increase from 457 million US dollars in 2020 to 565 million in 2021, the value declined to 515 million in 2022 and further decreased to 406 million in 2023. However, there was a recovery in 2024 reaching 502 million. This fluctuation suggests some instability or external pressures affecting this segment, although the rebound in the final year is a positive sign.

Materials, Supplies, and Other

This category exhibits growth overall, starting at 1,643 million US dollars in 2020 and increasing to 2,082 million in 2024. There was a dip in 2021 to 1,492 million, but subsequent years showed steady increases to 1,866 million in 2022 and peaking at 2,147 million in 2023 before a slight decline in the final year. The general upward trend, despite some fluctuations, indicates growing investment or inventory levels in this category.

Inventories

Inventories increased consistently year over year. Beginning at 5,676 million US dollars in 2020, the value rose to 9,074 million by 2024. This steady rise suggests accumulation of stock or rising costs/values of inventory holdings, which could impact liquidity or financial strategy if not managed effectively.

Inventories

The reported inventories increased steadily from 5,676 million USD in 2020 to 9,074 million USD in 2024, showing consistent growth over the five-year period. When adjusted for the LIFO reserve, inventories exhibited a more pronounced increase, rising from 8,425 million USD in 2020 to 15,071 million USD in 2024. The adjustment significantly amplifies the inventory values, particularly noticeable in the years 2021 through 2023, indicating an increasing LIFO reserve impact on reported inventory levels.

Current Assets

Reported current assets experienced growth from 26,078 million USD in 2020 to a peak of 50,343 million USD in 2022, followed by a decline to 40,911 million USD by 2024. The adjusted current assets, which incorporate the LIFO reserve, reflect a similar pattern but at higher levels, peaking at 59,404 million USD in 2022 before falling to 46,908 million USD in 2024. This suggests that the LIFO adjustment consistently increases asset valuation, though the underlying trend reveals a contraction in current assets after 2022.

Total Assets

Total assets reported by the company remained relatively stable, starting at 239,790 million USD in 2020, peaking modestly at 261,632 million USD in 2023, and slightly decreasing to 256,938 million USD in 2024. The adjusted total assets display a similar trajectory but at consistently higher values, from 242,539 million USD in 2020 to a peak of 268,087 million USD in 2023, tapering off slightly to 262,935 million USD in 2024. The overall stability in total assets, despite some fluctuations, suggests controlled asset base management with the LIFO reserve adjustment contributing moderately to asset values.

Stockholders’ Equity

Reported stockholders’ equity exhibits a general upward trend from 131,688 million USD in 2020 to a high of 160,957 million USD in 2023, but declines to 152,318 million USD in 2024. Adjusted equity similarly increases from 134,437 million USD in 2020 to 168,343 million USD in 2022, then slightly decreases to 158,315 million USD in 2024. The adjustment maintains a consistent premium over reported figures, reflecting the influence of inventory valuation on equity but highlighting a decline in shareholder value in 2024 compared to prior years.

Net Income

The reported net income shows significant volatility. The company posted a loss of -5,543 million USD in 2020, followed by a sharp increase to 35,465 million USD in 2022, indicating a strong recovery. However, net income declined in subsequent years to 21,369 million USD in 2023 and further to 17,661 million USD in 2024. The adjusted net income, which incorporates the LIFO reserve, follows the same trend but at lower levels, starting at a -7,307 million USD loss in 2020 and peaking at 38,938 million USD in 2022 before decreasing to 17,203 million USD in 2024. The adjusted figures emphasize the negative impact of inventory valuation changes on profitability, particularly around the early years and recent reductions.

Summary Insights

The data reveals a consistent upward trend in reported inventories, current assets, and total assets, with a notable spike in 2022 followed by a tapering or moderate decline in subsequent years. The LIFO reserve adjustment enhances all asset and equity measures, reflecting the impact of inventory valuation methods on the financial position. Profitability displays significant fluctuations with a recovery phase between 2021 and 2022 but diminished earnings in the following years. These patterns suggest a period of operational volatility impacted by inventory management and external factors influencing earnings and asset stability.

Current Ratio Trends

The reported current ratio demonstrated an initial improvement from 1.18 in 2020 to a peak of 1.47 in 2022, followed by a decline to 1.06 by 2024. The adjusted current ratio, which accounts for inventory LIFO reserve, followed a similar pattern but consistently remained higher than the reported figures, rising from 1.3 in 2020 to 1.74 in 2022 and subsequently decreasing to 1.22 in 2024. This suggests the liquidity position was relatively stronger when considering LIFO adjustments, despite the downward trend in the latest periods.

Net Profit Margin Analysis

Profitability as indicated by net profit margin showed significant volatility. The reported net profit margin recovered from a negative -5.87% in 2020 to a high of 15.05% in 2022, before decreasing steadily to 9.13% in 2024. The adjusted net profit margin, again accounting for inventory adjustments, followed a slightly more pronounced pattern: from -7.73% in 2020 to 16.52% in 2022, then dropping to 8.89% in 2024. This indicates the company's profitability was somewhat better reflected after inventory adjustments, although profitability diminished after 2022.

Total Asset Turnover Observations

Total asset turnover experienced a marked increase from 0.39 in 2020 to 0.91 reported in 2022, indicating more efficient asset utilization during this period. However, it declined and stabilized around 0.75 in 2023 and 2024. Adjusted figures were slightly lower but mirrored the same overall trend, moving from 0.39 in 2020 to 0.88 in 2022, then decreasing to approximately 0.74 by 2024. The data suggest that asset efficiency peaked in 2022 but softened somewhat afterward.

Financial Leverage Dynamics

Reported financial leverage decreased steadily from 1.82 in 2020 to 1.62 in 2022, implying a reduction in reliance on debt or increased equity. From 2023 onwards, leverage slightly increased again, reaching 1.69 by 2024. Adjusted leverage exhibited a comparable trajectory, descending from 1.8 in 2020 to 1.58 in 2022, then slightly rising to 1.66 in 2024. This pattern indicates a cautious deleveraging policy through 2022 followed by a moderate reversal in the subsequent years.

Return on Equity (ROE) Performance

ROE improved sharply from a negative -4.21% in 2020 to a peak reported value of 22.27% in 2022, then declined to 11.59% by 2024. Adjusted ROE followed a slightly higher magnitude but similar movement, rising from -5.44% in 2020 to 23.13% in 2022 and falling to 10.87% in 2024. These trends reflect strong profitability growth until 2022, followed by a noticeable reduction in shareholder returns.

Return on Assets (ROA) Insights

ROA demonstrated a comparable recovery and decline pattern. The reported ROA improved from -2.31% in 2020 to 13.76% in 2022, then decreased progressively to 6.87% by 2024. Adjusted ROA showed slightly higher values, moving from -3.01% to 14.60% in 2022 before diminishing to 6.54% in 2024. This indicates enhanced operational efficiency and profitability through 2022, with a subsequent decline in asset return performance.

The financial data over the five-year period displays notable fluctuations and general trends in current assets and current ratios when adjusted for inventory LIFO reserve effects.

Current Assets

The reported current assets show an increase from 26,078 million USD in 2020 to a peak of 50,343 million USD in 2022, followed by a decline to 40,911 million USD by 2024. This represents a growth phase until 2022 and a subsequent reduction across the next two years.

The adjusted current assets, which account for inventory LIFO reserve adjustments, mirror this overall trend but maintain consistently higher values compared to reported figures. Starting at 28,827 million USD in 2020, the adjusted figure peaks at 59,404 million USD in 2022 before also experiencing decreases to 46,908 million USD in 2024. The adjustment reveals a roughly 10-15% higher valuation of current assets throughout the period, indicating significant inventory valuation effects under LIFO accounting.

Current Ratios

The reported current ratio shows a steady incline from 1.18 in 2020 to a high of 1.47 in 2022, then decreases to 1.06 in 2024. This pattern suggests improved short-term liquidity until 2022 followed by a weakening liquidity position thereafter.

The adjusted current ratio follows a similar trajectory but with consistently higher ratios, starting at 1.30 in 2020, peaking at 1.74 in 2022, and declining to 1.22 in 2024. The larger magnitude in adjusted ratios reflects the positive impact of inventory adjustments on liquidity assessments, revealing that reliance on LIFO inventory accounting may understate short-term financial strength.

Overall, the data indicates that the company experienced growth in current assets and liquidity through 2022, followed by a contraction or normalization phase. Inventory LIFO reserve adjustments provide a more favorable view of liquidity and asset levels, highlighting the importance of considering accounting methods when evaluating financial health. The declining trend post-2022 should be monitored for potential impacts on operational liquidity and working capital management.

Net Income (Loss) Trends

The reported net income attributable to the company showed a significant turnaround from a loss of USD 5,543 million in 2020 to a profit of USD 15,625 million in 2021. This upward trend continued strongly into 2022, reaching USD 35,465 million, before declining moderately in 2023 and 2024 to USD 21,369 million and USD 17,661 million, respectively.

The adjusted net income followed a similar pattern but reflected larger absolute values in both losses and profits. The adjusted figures indicated a more severe loss in 2020 at USD 7,307 million, followed by a marked recovery to USD 18,464 million in 2021 and a peak at USD 38,938 million in 2022. Subsequently, there was a decline to USD 18,763 million in 2023 and a slight further decrease to USD 17,203 million in 2024.

Net Profit Margin Trends

The reported net profit margin percentage mirrored the net income pattern. It was negative at -5.87% in 2020, then improved substantially to 10.04% in 2021. It peaked at 15.05% in 2022, before decreasing to 10.85% in 2023 and further to 9.13% in 2024.

The adjusted net profit margin showed a slightly more pronounced trend. Starting from a negative margin of -7.73% in 2020, it increased to 11.87% in 2021 and peaked at 16.52% in 2022. However, it experienced a sharper decline in the following years, dropping to 9.53% in 2023 and 8.89% in 2024.

Summary of Observations

The company's financial performance displayed significant improvement from 2020 through 2022, with both reported and adjusted net income and profit margins turning from negative to strongly positive. The peak year in terms of profitability was 2022.

From 2023 onwards, the data indicates a moderation in profitability, with a notable decrease in net income and net profit margins. Despite this decline, both reported and adjusted figures remain in positive territory, suggesting sustained profitability albeit at lower levels compared to the 2022 peak.

The magnitude of the adjusted figures suggests that non-operational or one-time adjustments have a material impact on reported earnings, particularly evident in the larger adjusted losses in 2020 and higher adjusted gains in 2022.

Total Assets

The reported total assets demonstrate 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 decrease to 256,938 million US dollars in 2024. The adjusted total assets, which account for the inventory LIFO reserve, follow a similar pattern, rising from 242,539 million US dollars in 2020 to 268,087 million US dollars in 2023, then declining marginally to 262,935 million US dollars in 2024. This suggests consistent asset growth until 2023, with a modest contraction in the final year observed.

Total Asset Turnover

The reported total asset turnover ratio indicates an improvement from 0.39 in 2020 to a notable peak of 0.91 in 2022, suggesting enhanced efficiency in using assets to generate sales during this period. Subsequently, the ratio declines to 0.75 in 2023 and remains stable at 0.75 in 2024. A similar trend is evident in the adjusted total asset turnover ratios, which peak slightly lower at 0.88 in 2022 before declining to 0.73 and then 0.74 in the following years. The adjusted figures consistently show marginally lower turnover ratios than the reported figures, reflecting the impact of LIFO reserve adjustments on asset base and turnover metrics.

Insights

The data reflects an expansion phase in asset holdings through to 2023, accompanied by rising efficiency in asset utilization up to 2022. Post-2022, both asset turnover and total assets exhibit a downward or stable trend, indicating either a stabilization phase or the onset of an efficiency plateau. The LIFO reserve adjustments result in slightly higher asset values and correspondingly lower turnover ratios, emphasizing the importance of inventory accounting methods in financial analysis.

The analysis of the reported and LIFO reserve adjusted financial data over the five-year period reveals several notable trends in asset base, equity, and financial leverage metrics.

Total Assets

Reported total assets showed a modest increase from 239,790 million US dollars in 2020 to a peak of 261,632 million in 2023 before slightly declining to 256,938 million in 2024. When adjusted for inventory LIFO reserve, total assets consistently appear higher, starting at 242,539 million in 2020, rising to 268,087 million in 2023, and then declining marginally to 262,935 million in 2024. The adjusted figures indicate a consistently larger asset base, reflecting the inventory adjustment’s impact.

Stockholders’ Equity

The reported stockholders’ equity demonstrated a generally upward trend from 131,688 million in 2020 to 160,957 million in 2023, followed by a decline to 152,318 million in 2024. The equity values adjusted for LIFO reserve exhibit a parallel pattern but are consistently higher by approximately 2-6 billion dollars annually, starting at 134,437 million in 2020, rising to 168,343 million in 2022, and ending at 158,315 million in 2024. This suggests that inventory adjustments contribute positively to equity valuation.

Financial Leverage

Reported financial leverage decreased steadily from 1.82 in 2020 to a low of 1.62 in 2022, indicating a reduction in leverage or improved equity relative to liabilities. However, leverage slightly increased thereafter to 1.69 by 2024. Adjusted leverage figures follow a similar trajectory but are marginally lower each year, starting at 1.80 in 2020, dropping to 1.58 in 2022, then rising to 1.66 in 2024. The adjustment reduces apparent leverage, reflecting the impact of the LIFO reserve on equity and assets.

Overall, the trends reflect asset growth with a peak around 2023 and a slight contraction thereafter, an increase in equity followed by a modest decline, and a general downward trend in financial leverage through 2022 with a rebound towards 2024. The LIFO reserve adjustments consistently increase asset and equity values and slightly reduce financial leverage ratios, indicating their material effect on the company's financial structure.

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

Net Income (Loss) Attributable to Chevron Corporation

The reported net income showed a significant recovery after a large loss in 2020, rising sharply to 15,625 million USD in 2021, then peaking at 35,465 million USD in 2022. Subsequently, it declined to 21,369 million USD in 2023 and further to 17,661 million USD in 2024. The adjusted net income, which accounts for inventory LIFO reserve adjustments, followed a similar trend: a substantial loss in 2020, followed by strong gains through 2022, and a decline in the following two years. The adjusted figures were consistently lower than the reported ones, indicating the impact of the adjustments on profitability measurement.

Stockholders’ Equity

The reported total stockholders’ equity increased steadily from 131,688 million USD in 2020 to a peak of 160,957 million USD in 2023, before declining slightly to 152,318 million USD in 2024. The adjusted equity values were higher than the reported ones each year, reflecting the LIFO reserve adjustments, and showed a consistent growth pattern until 2023, followed by a small decrease in 2024. Overall, equity demonstrated a growth trajectory over the period, supportive of the company’s capitalization and retained earnings accumulation.

Return on Equity (ROE)

The reported ROE mirrored the net income pattern with a negative return in 2020 of -4.21%, swinging to positive double-digit returns from 2021 onward, peaking at 22.27% in 2022, then decreasing in the subsequent years to 13.28% in 2023 and 11.59% in 2024. The adjusted ROE, incorporating accounting adjustments, was slightly lower each year compared to reported ROE but maintained the same overall trend—negative in 2020, a sharp increase through 2022, and gradual decline in the last two years. This decline in ROE after 2022 may indicate reduced profitability relative to equity base despite solid absolute earnings.

In summary, the data portrays a recovery and growth phase from 2020 losses, peaking around 2022 in profitability and returns, followed by a moderate decline in both net income and ROE in the two subsequent years. Stockholders’ equity increased over the period but showed signs of modest contraction in the final year. The LIFO reserve adjustments consistently reduce income and equity figures, slightly dampening profitability metrics but not altering the overall financial trends observed.

The financial data reveals fluctuating performance over the five-year period ending December 31, 2024, with notable variations in income, assets, and returns on assets, both in reported and inventory LIFO reserve adjusted terms.

Net Income (Loss) Attributable to Chevron Corporation

The reported net income exhibited substantial volatility, beginning with a significant loss of US$ -5,543 million in 2020, rebounding strongly to a peak of US$ 35,465 million in 2022, followed by a decline in the subsequent years to US$ 21,369 million in 2023 and further down to US$ 17,661 million in 2024. Adjusted net income, accounting for inventory LIFO reserve effects, shows a similar pattern but with larger absolute values; the 2020 loss deepens to US$ -7,307 million, and the peak in 2022 rises to US$ 38,938 million. The adjusted net income also declines thereafter, paralleling the reported figures, ending at US$ 17,203 million in 2024.

Total Assets

The reported total assets displayed a generally increasing trend from US$ 239,790 million in 2020 to a peak of US$ 261,632 million in 2023, followed by a slight decrease to US$ 256,938 million in 2024. The adjusted total assets, including inventory LIFO reserve adjustments, consistently remained higher than the reported figures. Adjusted asset values rose steadily from US$ 242,539 million in 2020 to US$ 268,087 million in 2023, with a minor decline to US$ 262,935 million in 2024, mirroring the reported data trend but reflecting the inventory valuation adjustments.

Return on Assets (ROA)

The reported ROA experienced significant fluctuations, starting with a negative return of -2.31% in 2020, followed by a marked improvement to 6.52% in 2021 and peaking at 13.76% in 2022. Afterward, it declined to 8.17% in 2023 and further to 6.87% in 2024. The adjusted ROA, reflecting inventory adjustments, followed a similar trajectory but generally presented slightly lower figures in the later years. It shifted from -3.01% in 2020 up to 7.53% in 2021 and reached a peak of 14.6% in 2022 before decreasing to 7% in 2023 and 6.54% in 2024.

Overall, the data indicates a strong recovery in profitability and efficiency after a challenging year in 2020, with peak performance in 2022 followed by a moderate decline. Asset growth was steady, supporting the company’s operations, though slight reductions occurred in the last reported year. Adjustments for the inventory LIFO reserve consistently elevated asset valuations and net income figures, highlighting the significant impact of inventory accounting on financial results. The ROA trends emphasize fluctuating operational efficiency, mirroring income trends and reflecting changing economic conditions or operational factors influencing profitability.