Analysis of Debt
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Chevron Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Return on Equity (ROE) since 2005
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Total Debt (Carrying Amount)
Chevron Corp., balance sheet: debt
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Short-term debt | ||||||
| Long-term debt, excluding debt due within one year | ||||||
| Total debt (carrying amount) |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Short-term debt
- The short-term debt fluctuated over the analyzed period. It started at 1,548 million USD at the end of 2020, dropped significantly to 256 million USD by the end of 2021, then sharply increased to 1,964 million USD at the end of 2022. This was followed by a decrease to 529 million USD in 2023, and finally, a substantial rise to 4,406 million USD at the end of 2024. This indicates considerable volatility and a tendency towards increased short-term borrowing in the most recent year.
- Long-term debt, excluding debt due within one year
- The long-term debt showed a persistent downward trend during the period under review. Starting at 42,767 million USD in 2020, it declined steadily each year to 31,113 million USD in 2021, 21,375 million USD in 2022, and 20,307 million USD in 2023, before a slight further decrease to 20,135 million USD in 2024. This reflects a consistent reduction in long-term liabilities over these years.
- Total debt (carrying amount)
- Total debt followed a pattern influenced by the movements in both short-term and long-term debt. It decreased substantially from 44,315 million USD in 2020 to 31,369 million USD in 2021, continuing to drop to 23,339 million USD in 2022 and 20,836 million USD in 2023. However, in 2024, total debt rose to 24,541 million USD, primarily driven by the increase in short-term debt. Overall, the trend indicates a reduction in total debt over the first four years, with a reversal in the last year due to increased short-term borrowing.
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term debt, excluding finance lease liabilities | |
| Long-term debt, excluding due within one year and finance lease liabilities | |
| Finance lease liabilities | |
| Total debt (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
Chevron Corp., interest costs incurred
US$ in millions
| 12 months ended: | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest and debt expense | |||||||||||
| Capitalized interest | |||||||||||
| Financing interest and debt costs |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Interest and Debt Expense
- The interest and debt expense exhibited a variable trend over the five-year period. Starting at 697 million USD at the end of 2020, the expense slightly increased to 712 million USD in 2021. Subsequently, a notable decline occurred in 2022 and 2023, decreasing to 516 million USD and 469 million USD respectively. However, in 2024, the expense rose again to 594 million USD, indicating an upward adjustment after the previous reductions.
- Capitalized Interest
- Capitalized interest showed a consistent and significant upward trend across the timeline. It increased from 38 million USD in 2020 to 63 million USD in 2021, nearly doubling by 2022 to 114 million USD. This growth continued at a steady pace, reaching 148 million USD in 2023 and culminating at 179 million USD in 2024. This pattern suggests an increasing allocation of interest costs being capitalized over the years.
- Financing Interest and Debt Costs
- The financing interest and debt costs, which combine interest and capitalized interest, fluctuated in a similar pattern to the other components. Starting at 735 million USD in 2020, the costs peaked slightly at 775 million USD in 2021 before declining to 630 million USD in 2022 and further to 617 million USD in 2023. In 2024, costs increased again to 773 million USD, nearly reaching the highest level observed in the period. This reflects the interplay of decreasing interest expense partially offset by rising capitalized interest.
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest and debt expense
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Financing interest and debt costs
= ÷ =
- Interest Coverage Ratio (without capitalized interest)
-
The interest coverage ratio experienced a significant increase from a negative value of -9.69 in 2020 to a strong positive ratio of 31.39 in 2021. This upward trend continued markedly in 2022, reaching a peak of 97.27, indicating a substantial improvement in the company's ability to meet interest obligations from operating earnings.
Following 2022, there was a gradual decline in this ratio over the next two years, decreasing to 64.08 in 2023 and further to 47.31 in 2024. Despite the decline, the ratio remains at a historically high level compared to 2020, suggesting sustained strong coverage of interest expenses.
- Adjusted Interest Coverage Ratio (with capitalized interest)
-
A similar pattern is observed in the adjusted interest coverage ratio, which incorporates capitalized interest costs. The ratio rose from -9.19 in 2020 to 28.84 in 2021, indicating significant recovery in the ability to cover interest expenses when accounting for capitalized interest.
The ratio continued to improve in 2022, reaching 79.67, which, while lower than the non-adjusted ratio, still represents robust coverage. In the subsequent years, 2023 and 2024, the ratio declined to 48.71 and 36.35 respectively, reflecting a reduction in earnings relative to adjusted interest costs but remaining well above the levels reported in 2020.
- Overall Analysis
-
The data indicates a marked recovery and strengthening of the company's capacity to cover interest expenses beginning in 2021 after a challenging year in 2020. Peak coverage occurred in 2022, followed by moderate decreases over the next two years. This suggests a potential easing of earnings or increased interest obligations but an overall solid financial position relative to interest commitments through 2024.