Stock Analysis on Net

Chevron Corp. (NYSE:CVX)

Analysis of Debt

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Total Debt (Carrying Amount)

Chevron Corp., balance sheet: debt

US$ in millions

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Short-term debt 529 1,964 256 1,548 3,282
Long-term debt, excluding debt due within one year 20,307 21,375 31,113 42,767 23,691
Total debt (carrying amount) 20,836 23,339 31,369 44,315 26,973

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).

Debt item Description The company
Total debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Chevron Corp. total debt decreased from 2021 to 2022 and from 2022 to 2023.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2023
Selected Financial Data (US$ in millions)
Short-term debt, excluding finance lease liabilities 5,012
Long-term debt, excluding due within one year and finance lease liabilities 13,709
Finance lease liabilities 634
Total debt (fair value) 19,355
Financial Ratio
Debt, fair value to carrying amount ratio 0.93

Based on: 10-K (reporting date: 2023-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 2.94%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
3.29% 1,650 54
1.72% 4,000 69
2.95% 2,250 66
2.38% 2,000 48
3.85% 600 23
3.25% 500 16
2.24% 1,500 34
8.63% 102 9
8.42% 183 15
2.98% 293 9
6.00% 397 24
5.25% 330 17
5.05% 222 11
4.95% 187 9
4.20% 237 10
2.76% 1,750 48
7.25% 60 4
6.60% 20 1
4.50% 634 29
Total 16,915 497
2.94%

Based on: 10-K (reporting date: 2023-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 497 ÷ 16,915 = 2.94%


Interest Costs Incurred

Chevron Corp., interest costs incurred

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Interest and debt expense 469 516 712 697 798
Capitalized interest 148 114 63 38 19
Financing interest and debt costs 617 630 775 735 817

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).

Debt item Description The company
Interest and debt expense Amount of the cost of borrowed funds accounted for as interest expense for debt. Chevron Corp. interest and debt expense decreased from 2021 to 2022 and from 2022 to 2023.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Chevron Corp. capitalized interest increased from 2021 to 2022 and from 2022 to 2023.
Financing interest and debt costs Total interest costs incurred during the period and either capitalized or charged against earnings. Chevron Corp. financing interest and debt costs decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Interest Coverage Ratio

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 21,369 35,465 15,625 (5,543) 2,924
Add: Net income attributable to noncontrolling interest 42 143 64 (18) (79)
Add: Income tax expense 8,173 14,066 5,950 (1,892) 2,691
Add: Interest and debt expense 469 516 712 697 798
Earnings before interest and tax (EBIT) 30,053 50,190 22,351 (6,756) 6,334
 
Financing interest and debt costs 617 630 775 735 817
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 64.08 97.27 31.39 -9.69 7.94
Adjusted interest coverage ratio (with capitalized interest)2 48.71 79.67 28.84 -9.19 7.75

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 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest and debt expense
= 30,053 ÷ 469 = 64.08

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Financing interest and debt costs
= 30,053 ÷ 617 = 48.71


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Chevron Corp. adjusted interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.