Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Chevron Corp. (NYSE:CVX)

Analysis of Income Taxes

Advanced level

Income Tax Expense (Benefit)

Chevron Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
U.S. federal (73) (181) (382) (623) (817)
State and local 153  183  (97) (15) (187)
International 4,577  4,662  3,634  2,744  2,997 
Current 4,657  4,664  3,155  2,106  1,993 
U.S. federal (1,074) 738  (2,561) (1,558) (580)
State and local (172) (16) 66  (121) (109)
International (720) 329  (708) (2,156) (1,172)
Deferred (1,966) 1,051  (3,203) (3,835) (1,861)
Income tax expense (benefit) 2,691  5,715  (48) (1,729) 132 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Chevron Corp.’s current increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Chevron Corp.’s deferred increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Chevron Corp.’s income tax expense (benefit) increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Effective Income Tax Rate (EITR)

Chevron Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
U.S. statutory federal income tax rate 21.00% 21.00% 35.00% 35.00% 35.00%
Effective income tax rate, before effect of U.S. tax reform 48.60% 27.90% 21.40% 80.00% 2.70%
Effective income tax rate 48.60% 27.80% -0.50% 80.00% 2.70%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

Item Description The company
Effective income tax rate, before effect of U.S. tax reform Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Chevron Corp.’s effective income tax rate, before effect of U.S. tax reform increased from 2017 to 2018 and from 2018 to 2019.

Components of Deferred Tax Assets and Liabilities

Chevron Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Foreign tax credits 9,840  10,536  11,872  10,976  10,534 
Asset retirement obligations/environmental reserves 4,329  5,328  5,511  6,251  6,880 
Employee benefits 3,454  2,787  3,129  4,392  4,801 
Deferred credits 1,083  1,373  1,769  1,950  1,810 
Tax loss carryforwards 5,262  4,948  5,463  6,030  2,748 
Other accrued liabilities 441  595  842  510  525 
Inventory 662  505  336  374  120 
Operating leases 1,211  —  —  —  — 
Miscellaneous 2,796  3,481  2,415  3,121  2,525 
Deferred tax assets, gross 29,078  29,553  31,337  33,604  29,943 
Deferred tax assets valuation allowance (15,965) (15,973) (16,574) (16,069) (15,412)
Deferred tax assets, net 13,113  13,580  14,763  17,535  14,531 
Properties, plant and equipment (17,251) (20,159) (19,869) (25,180) (27,044)
Investments and other (5,372) (4,943) (4,796) (5,222) (3,743)
Deferred tax liabilities (22,623) (25,102) (24,665) (30,402) (30,787)
Deferred taxes, net (9,510) (11,522) (9,902) (12,867) (16,256)

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Chevron Corp.’s deferred tax assets, gross decreased from 2017 to 2018 and from 2018 to 2019.
Deferred tax assets, net Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Chevron Corp.’s deferred tax assets, net decreased from 2017 to 2018 and from 2018 to 2019.
Deferred taxes, net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Chevron Corp.’s deferred taxes, net decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Deferred Tax Assets and Liabilities, Classification

Chevron Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current deferred tax assets (included in Prepaid expenses and other current assets) —  —  —  —  917 
Noncurrent deferred tax assets (included in Deferred charges and other assets) 4,178  4,399  4,750  4,649  4,512 
Current deferred tax liabilities (included in Federal and other taxes on income) —  —  —  —  996 
Noncurrent deferred income tax liabilities 13,688  15,921  14,652  17,516  20,689 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

Item Description The company
Noncurrent deferred tax assets (included in Deferred charges and other assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Chevron Corp.’s noncurrent deferred tax assets (included in Deferred charges and other assets) decreased from 2017 to 2018 and from 2018 to 2019.
Noncurrent deferred income tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Chevron Corp.’s noncurrent deferred income tax liabilities increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Adjustments to Financial Statements: Removal of Deferred Taxes

Chevron Corp., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Current Assets
Current assets (as reported) 28,329  34,021  28,560  29,619  35,347 
Less: Current deferred tax assets, net —  —  —  —  917 
Current assets (adjusted) 28,329  34,021  28,560  29,619  34,430 
Adjustment to Total Assets
Total assets (as reported) 237,428  253,863  253,806  260,078  266,103 
Less: Current deferred tax assets, net —  —  —  —  917 
Less: Noncurrent deferred tax assets, net 4,178  4,399  4,750  4,649  4,512 
Total assets (adjusted) 233,250  249,464  249,056  255,429  260,674 
Adjustment to Current Liabilities
Current liabilities (as reported) 26,530  27,171  27,737  31,785  26,464 
Less: Current deferred tax liabilities, net —  —  —  —  996 
Current liabilities (adjusted) 26,530  27,171  27,737  31,785  25,468 
Adjustment to Total Liabilities
Total liabilities (as reported) 92,220  98,221  104,487  113,356  112,217 
Less: Current deferred tax liabilities, net —  —  —  —  996 
Less: Noncurrent deferred tax liabilities, net 13,688  15,921  14,652  17,516  20,689 
Total liabilities (adjusted) 78,532  82,300  89,835  95,840  90,532 
Adjustment to Total Chevron Corporation Stockholders’ Equity
Total Chevron Corporation stockholders’ equity (as reported) 144,213  154,554  148,124  145,556  152,716 
Less: Net deferred tax assets (liabilities) (9,510) (11,522) (9,902) (12,867) (16,256)
Total Chevron Corporation stockholders’ equity (adjusted) 153,723  166,076  158,026  158,423  168,972 
Adjustment to Net Income (loss) Attributable To Chevron Corporation
Net income (loss) attributable to Chevron Corporation (as reported) 2,924  14,824  9,195  (497) 4,587 
Add: Deferred income tax expense (benefit) (1,966) 1,051  (3,203) (3,835) (1,861)
Net income (loss) attributable to Chevron Corporation (adjusted) 958  15,875  5,992  (4,332) 2,726 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

Chevron Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Chevron Corp., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current Ratio
Reported current ratio 1.07 1.25 1.03 0.93 1.34
Adjusted current ratio 1.07 1.25 1.03 0.93 1.35
Net Profit Margin
Reported net profit margin 2.09% 9.33% 6.83% -0.45% 3.53%
Adjusted net profit margin 0.68% 9.99% 4.45% -3.93% 2.10%
Total Asset Turnover
Reported total asset turnover 0.59 0.63 0.53 0.42 0.49
Adjusted total asset turnover 0.60 0.64 0.54 0.43 0.50
Financial Leverage
Reported financial leverage 1.65 1.64 1.71 1.79 1.74
Adjusted financial leverage 1.52 1.50 1.58 1.61 1.54
Return on Equity (ROE)
Reported ROE 2.03% 9.59% 6.21% -0.34% 3.00%
Adjusted ROE 0.62% 9.56% 3.79% -2.73% 1.61%
Return on Assets (ROA)
Reported ROA 1.23% 5.84% 3.62% -0.19% 1.72%
Adjusted ROA 0.41% 6.36% 2.41% -1.70% 1.05%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Chevron Corp.’s adjusted current ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Chevron Corp.’s adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Chevron Corp.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Chevron Corp.’s adjusted financial leverage ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Chevron Corp.’s adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Chevron Corp.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Chevron Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Current assets 28,329  34,021  28,560  29,619  35,347 
Current liabilities 26,530  27,171  27,737  31,785  26,464 
Liquidity Ratio
Current ratio1 1.07 1.25 1.03 0.93 1.34
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 28,329  34,021  28,560  29,619  34,430 
Adjusted current liabilities 26,530  27,171  27,737  31,785  25,468 
Liquidity Ratio
Adjusted current ratio2 1.07 1.25 1.03 0.93 1.35

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 28,329 ÷ 26,530 = 1.07

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 28,329 ÷ 26,530 = 1.07

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Chevron Corp.’s adjusted current ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 2,924  14,824  9,195  (497) 4,587 
Sales and other operating revenues 139,865  158,902  134,674  110,215  129,925 
Profitability Ratio
Net profit margin1 2.09% 9.33% 6.83% -0.45% 3.53%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 958  15,875  5,992  (4,332) 2,726 
Sales and other operating revenues 139,865  158,902  134,674  110,215  129,925 
Profitability Ratio
Adjusted net profit margin2 0.68% 9.99% 4.45% -3.93% 2.10%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Chevron Corporation ÷ Sales and other operating revenues
= 100 × 2,924 ÷ 139,865 = 2.09%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Chevron Corporation ÷ Sales and other operating revenues
= 100 × 958 ÷ 139,865 = 0.68%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Chevron Corp.’s adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 139,865  158,902  134,674  110,215  129,925 
Total assets 237,428  253,863  253,806  260,078  266,103 
Activity Ratio
Total asset turnover1 0.59 0.63 0.53 0.42 0.49
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenues 139,865  158,902  134,674  110,215  129,925 
Adjusted total assets 233,250  249,464  249,056  255,429  260,674 
Activity Ratio
Adjusted total asset turnover2 0.60 0.64 0.54 0.43 0.50

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 139,865 ÷ 237,428 = 0.59

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 139,865 ÷ 233,250 = 0.60

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Chevron Corp.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 237,428  253,863  253,806  260,078  266,103 
Total Chevron Corporation stockholders’ equity 144,213  154,554  148,124  145,556  152,716 
Solvency Ratio
Financial leverage1 1.65 1.64 1.71 1.79 1.74
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 233,250  249,464  249,056  255,429  260,674 
Adjusted total Chevron Corporation stockholders’ equity 153,723  166,076  158,026  158,423  168,972 
Solvency Ratio
Adjusted financial leverage2 1.52 1.50 1.58 1.61 1.54

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Financial leverage = Total assets ÷ Total Chevron Corporation stockholders’ equity
= 237,428 ÷ 144,213 = 1.65

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Chevron Corporation stockholders’ equity
= 233,250 ÷ 153,723 = 1.52

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Chevron Corp.’s adjusted financial leverage ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 2,924  14,824  9,195  (497) 4,587 
Total Chevron Corporation stockholders’ equity 144,213  154,554  148,124  145,556  152,716 
Profitability Ratio
ROE1 2.03% 9.59% 6.21% -0.34% 3.00%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 958  15,875  5,992  (4,332) 2,726 
Adjusted total Chevron Corporation stockholders’ equity 153,723  166,076  158,026  158,423  168,972 
Profitability Ratio
Adjusted ROE2 0.62% 9.56% 3.79% -2.73% 1.61%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

2019 Calculations

1 ROE = 100 × Net income (loss) attributable to Chevron Corporation ÷ Total Chevron Corporation stockholders’ equity
= 100 × 2,924 ÷ 144,213 = 2.03%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Chevron Corporation ÷ Adjusted total Chevron Corporation stockholders’ equity
= 100 × 958 ÷ 153,723 = 0.62%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Chevron Corp.’s adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 2,924  14,824  9,195  (497) 4,587 
Total assets 237,428  253,863  253,806  260,078  266,103 
Profitability Ratio
ROA1 1.23% 5.84% 3.62% -0.19% 1.72%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 958  15,875  5,992  (4,332) 2,726 
Adjusted total assets 233,250  249,464  249,056  255,429  260,674 
Profitability Ratio
Adjusted ROA2 0.41% 6.36% 2.41% -1.70% 1.05%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-25).

2019 Calculations

1 ROA = 100 × Net income (loss) attributable to Chevron Corporation ÷ Total assets
= 100 × 2,924 ÷ 237,428 = 1.23%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Chevron Corporation ÷ Adjusted total assets
= 100 × 958 ÷ 233,250 = 0.41%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Chevron Corp.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.