Chevron Corp. (NYSE:CVX)

Net Income (Loss) Attributable to Chevron Corporation

The net income experienced a significant turnaround from a loss of $5,543 million in 2020 to a profit of $15,625 million in 2021. This upward trend continued in 2022, reaching a peak of $35,465 million. However, in the subsequent years, net income showed a declining pattern, decreasing to $21,369 million in 2023 and further to $17,661 million in 2024. Despite the decline, profitability remained substantially above the 2020 level.

Earnings Before Tax (EBT)

EBT followed a similar trajectory to net income. It moved from a negative $7,453 million in 2020 to a sizable positive $21,639 million in 2021. A strong increase occurred in 2022, reaching $49,674 million, followed by a decline over the next two years, dropping to $29,584 million in 2023 and $27,506 million in 2024. Overall, the company sustained positive earnings before tax after 2020, despite some volatility.

Earnings Before Interest and Tax (EBIT)

EBIT mirrored the upward and downward trends of EBT and net income. From a loss of $6,756 million in 2020, it rose sharply to $22,351 million in 2021 and peaked at $50,190 million in 2022. A reduction followed in 2023 to $30,053 million and a slight further decline to $28,100 million in 2024. This indicates improved operational performance post-2020, with weakening momentum in the latest two years.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA showed consistent growth from 2020 to 2022, starting at $12,752 million and increasing to $40,276 million in 2021, with a peak of $66,509 million in 2022. In contrast to EBIT and net income, EBITDA exhibited a less steep decline in 2023 and 2024, decreasing to $47,379 million and $45,382 million respectively. This reflects sustained underlying cash profitability, although at a reduced level compared to 2022.

Overall Analysis

The financial data reveals a sharp recovery from losses in 2020 to strong profitability in 2021 and 2022 across all earnings metrics. Peak performance was generally reached in 2022, followed by a consistent decline in 2023 and 2024. Despite this downturn, the company maintained positive earnings and healthy EBITDA levels, suggesting resilience in core operations. The divergence between EBITDA and net profit declines points to potential increases in non-cash expenses or financial costs affecting the bottom line in recent years.

The financial data reveals several noteworthy trends over the five-year period ending in 2024. The enterprise value (EV), measured in millions of US dollars, exhibited a general upward trend from 236,771 in 2020 to a peak of 315,004 in 2022. Following this peak, the EV declined moderately to 294,868 by 2024. This pattern suggests a period of growth followed by a phase of relative contraction or stabilization in the market valuation.

Regarding operational performance, EBITDA showed substantial growth from 12,752 million in 2020 to a high of 66,509 million in 2022. However, after this year, EBITDA decreased markedly to 47,379 million in 2023 and slightly further to 45,382 million in 2024. The sharp increase until 2022 may indicate improved profitability or operational efficiency, while the subsequent decrease could imply increased costs, reduced revenues, or other operational challenges.

The EV/EBITDA ratio, which provides insight into valuation relative to earnings, demonstrated a significant decline from 18.57 in 2020 to 4.74 in 2022. This sharp decrease reflects an improvement in earnings relative to enterprise value, potentially indicating undervaluation or enhanced earnings quality during that period. In 2023 and 2024, the ratio rose moderately to 6.34 and 6.5, respectively, suggesting a relative increase in value or decrease in earnings efficiency compared to the peak EBITDA year.

Enterprise Value (EV) Trend

Increased steadily from 2020 to 2022, followed by a slight decline through 2024.

EBITDA Trend

Substantial growth reaching a maximum in 2022, with a notable decline over the subsequent two years.

EV/EBITDA Ratio

Marked decrease from 2020 to 2022 indicating improved earnings relative to valuation; moderate increase in 2023 and 2024.

In summary, the data indicates a period of strong operational performance and increasing market valuation until 2022, followed by moderation in both earnings and valuation metrics in the following years. This may reflect changing market conditions, operational challenges, or strategic shifts impacting the financial dynamics of the company.