Stock Analysis on Net

Chevron Corp. (NYSE:CVX)

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Chevron Corp., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 19,473 41,794 19,443 (10,295) 852
Invested capital2 212,337 212,342 193,606 197,314 195,769
Performance Ratio
ROIC3 9.17% 19.68% 10.04% -5.22% 0.44%
Benchmarks
ROIC, Competitors4
ConocoPhillips 15.20% 28.02% 13.45% -5.92% 12.76%
Exxon Mobil Corp. 12.32% 21.12% 12.01% -12.45% 5.40%
Marathon Petroleum Corp. 16.88% 25.81% 9.73% -15.64% 7.54%
Occidental Petroleum Corp. 9.72% 22.25% 7.26% -23.53% -0.80%
Pioneer Natural Resources Co. 16.60% 30.31% 8.67% -0.88% 6.44%
Valero Energy Corp. 15.39% 27.16% 12.49% -4.03% 10.87%

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 19,473 ÷ 212,337 = 9.17%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Chevron Corp. ROIC improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Decomposition of ROIC

Chevron Corp., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 9.17% = 13.94% × 0.93 × 70.92%
Dec 31, 2022 19.68% = 22.85% × 1.11 × 77.60%
Dec 31, 2021 10.04% = 15.98% × 0.80 × 78.21%
Dec 31, 2020 -5.22% = -8.90% × 0.48 × 100.00%
Dec 31, 2019 0.44% = 4.08% × 0.71 × 14.93%

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2023 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Chevron Corp., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 19,473 41,794 19,443 (10,295) 852
Add: Cash operating taxes2 7,986 12,067 5,416 1,885 4,851
Net operating profit before taxes (NOPBT) 27,459 53,862 24,859 (8,410) 5,702
 
Sales and other operating revenues 196,913 235,717 155,606 94,471 139,865
Profitability Ratio
OPM3 13.94% 22.85% 15.98% -8.90% 4.08%
Benchmarks
OPM, Competitors4
ConocoPhillips 29.62% 36.63% 29.99% -13.37% 31.34%
Exxon Mobil Corp. 15.71% 19.95% 14.69% -17.59% 8.83%
Marathon Petroleum Corp. 9.30% 12.61% 5.74% -18.45% 5.25%
Occidental Petroleum Corp. 26.23% 41.51% 20.91% -79.93% 6.27%
Pioneer Natural Resources Co. 33.11% 41.37% 16.29% -1.85% 11.34%
Valero Energy Corp. 7.27% 9.65% 5.33% -3.98% 4.62%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Sales and other operating revenues
= 100 × 27,459 ÷ 196,913 = 13.94%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Chevron Corp. OPM improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Turnover of Capital (TO)

Chevron Corp., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Sales and other operating revenues 196,913 235,717 155,606 94,471 139,865
Invested capital1 212,337 212,342 193,606 197,314 195,769
Efficiency Ratio
TO2 0.93 1.11 0.80 0.48 0.71
Benchmarks
TO, Competitors3
ConocoPhillips 0.69 1.04 0.60 0.37 0.56
Exxon Mobil Corp. 1.09 1.34 1.01 0.65 0.84
Marathon Petroleum Corp. 2.32 2.55 1.89 0.99 1.51
Occidental Petroleum Corp. 0.50 0.65 0.45 0.28 0.24
Pioneer Natural Resources Co. 0.58 0.76 0.55 0.41 0.58
Valero Energy Corp. 2.83 3.54 2.56 1.58 2.66

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).

1 Invested capital. See details »

2 2023 Calculation
TO = Sales and other operating revenues ÷ Invested capital
= 196,913 ÷ 212,337 = 0.93

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Chevron Corp. TO improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Effective Cash Tax Rate (CTR)

Chevron Corp., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 19,473 41,794 19,443 (10,295) 852
Add: Cash operating taxes2 7,986 12,067 5,416 1,885 4,851
Net operating profit before taxes (NOPBT) 27,459 53,862 24,859 (8,410) 5,702
Tax Rate
CTR3 29.08% 22.40% 21.79% 85.07%
Benchmarks
CTR, Competitors4
ConocoPhillips 25.68% 26.41% 25.25% 27.88%
Exxon Mobil Corp. 27.99% 21.11% 19.45% 27.33%
Marathon Petroleum Corp. 21.82% 19.76% 10.23% 4.97%
Occidental Petroleum Corp. 25.46% 17.63% 22.36% 152.57%
Pioneer Natural Resources Co. 13.75% 3.25% 2.75% 2.05%
Valero Energy Corp. 25.22% 20.60% 8.53% 11.52%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 7,986 ÷ 27,459 = 29.08%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Chevron Corp. CTR increased from 2021 to 2022 and from 2022 to 2023.