Stock Analysis on Net

Chevron Corp. (NYSE:CVX) 

Analysis of Income Taxes

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Income Tax Expense (Benefit)

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

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
U.S. federal 174  (182) (73) (181) (382)
State and local 222  65  153  183  (97)
United States 396  (117) 80  (479)
International 4,854  1,833  4,577  4,662  3,634 
Current 5,250  1,716  4,657  4,664  3,155 
U.S. federal 1,004  (1,315) (1,074) 738  (2,561)
State and local 202  (152) (172) (16) 66 
United States 1,206  (1,467) (1,246) 722  (2,495)
International (506) (2,141) (720) 329  (708)
Deferred 700  (3,608) (1,966) 1,051  (3,203)
Income tax expense (benefit) 5,950  (1,892) 2,691  5,715  (48)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Chevron Corp. current decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Chevron Corp. deferred decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Chevron Corp. income tax expense (benefit) decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Effective Income Tax Rate (EITR)

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

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
U.S. statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
Effective income tax rate, before effect of U.S. tax reform 27.50% 25.40% 48.60% 27.90% 21.40%
Effective income tax rate 27.50% 25.40% 48.60% 27.80% -0.50%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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. effective income tax rate, before effect of U.S. tax reform decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Components of Deferred Tax Assets and Liabilities

Chevron Corp., components of deferred tax assets and liabilities

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Foreign tax credits 11,718  10,585  9,840  10,536  11,872 
Asset retirement obligations/environmental reserves 4,553  4,721  4,329  5,328  5,511 
Employee benefits 3,037  3,856  3,454  2,787  3,129 
Deferred credits 996  1,056  1,083  1,373  1,769 
Tax loss carryforwards 4,175  6,701  5,262  4,948  5,463 
Other accrued liabilities 239  228  441  595  842 
Inventory 289  633  662  505  336 
Operating leases 1,255  1,234  1,211  —  — 
Miscellaneous 3,657  3,685  2,796  3,481  2,415 
Deferred tax assets, gross 29,919  32,699  29,078  29,553  31,337 
Deferred tax assets valuation allowance (17,651) (17,762) (15,965) (15,973) (16,574)
Deferred tax assets, net 12,268  14,937  13,113  13,580  14,763 
Properties, plant and equipment (17,169) (16,603) (17,251) (20,159) (19,869)
Investments and other (4,105) (5,617) (5,372) (4,943) (4,796)
Deferred tax liabilities (21,274) (22,220) (22,623) (25,102) (24,665)
Deferred taxes, net (9,006) (7,283) (9,510) (11,522) (9,902)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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. deferred tax assets, gross increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Deferred tax assets, net Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Chevron Corp. deferred tax assets, net increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
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. deferred taxes, net increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Deferred Tax Assets and Liabilities, Classification

Chevron Corp., deferred tax assets and liabilities, classification

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Noncurrent deferred tax assets (included in Deferred charges and other assets) 5,659  5,286  4,178  4,399  4,750 
Noncurrent deferred income tax liabilities 14,665  12,569  13,688  15,921  14,652 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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. noncurrent deferred tax assets (included in Deferred charges and other assets) increased from 2019 to 2020 and from 2020 to 2021.
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. noncurrent deferred income tax liabilities decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Adjustments to Financial Statements: Removal of Deferred Taxes

Chevron Corp., adjustments to financial statements

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 239,535  239,790  237,428  253,863  253,806 
Less: Noncurrent deferred tax assets, net 5,659  5,286  4,178  4,399  4,750 
Total assets (adjusted) 233,876  234,504  233,250  249,464  249,056 
Adjustment to Total Liabilities
Total liabilities (as reported) 99,595  107,064  92,220  98,221  104,487 
Less: Noncurrent deferred tax liabilities, net 14,665  12,569  13,688  15,921  14,652 
Total liabilities (adjusted) 84,930  94,495  78,532  82,300  89,835 
Adjustment to Total Chevron Corporation Stockholders’ Equity
Total Chevron Corporation stockholders’ equity (as reported) 139,067  131,688  144,213  154,554  148,124 
Less: Net deferred tax assets (liabilities) (9,006) (7,283) (9,510) (11,522) (9,902)
Total Chevron Corporation stockholders’ equity (adjusted) 148,073  138,971  153,723  166,076  158,026 
Adjustment to Net Income (loss) Attributable To Chevron Corporation
Net income (loss) attributable to Chevron Corporation (as reported) 15,625  (5,543) 2,924  14,824  9,195 
Add: Deferred income tax expense (benefit) 700  (3,608) (1,966) 1,051  (3,203)
Net income (loss) attributable to Chevron Corporation (adjusted) 16,325  (9,151) 958  15,875  5,992 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


Chevron Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Chevron Corp., adjusted financial ratios

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 10.04% -5.87% 2.09% 9.33% 6.83%
Adjusted net profit margin 10.49% -9.69% 0.68% 9.99% 4.45%
Total Asset Turnover
Reported total asset turnover 0.65 0.39 0.59 0.63 0.53
Adjusted total asset turnover 0.67 0.40 0.60 0.64 0.54
Financial Leverage
Reported financial leverage 1.72 1.82 1.65 1.64 1.71
Adjusted financial leverage 1.58 1.69 1.52 1.50 1.58
Return on Equity (ROE)
Reported ROE 11.24% -4.21% 2.03% 9.59% 6.21%
Adjusted ROE 11.02% -6.58% 0.62% 9.56% 3.79%
Return on Assets (ROA)
Reported ROA 6.52% -2.31% 1.23% 5.84% 3.62%
Adjusted ROA 6.98% -3.90% 0.41% 6.36% 2.41%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Chevron Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Chevron Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
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. adjusted financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Chevron Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Chevron Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Chevron Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 15,625  (5,543) 2,924  14,824  9,195 
Sales and other operating revenues 155,606  94,471  139,865  158,902  134,674 
Profitability Ratio
Net profit margin1 10.04% -5.87% 2.09% 9.33% 6.83%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 16,325  (9,151) 958  15,875  5,992 
Sales and other operating revenues 155,606  94,471  139,865  158,902  134,674 
Profitability Ratio
Adjusted net profit margin2 10.49% -9.69% 0.68% 9.99% 4.45%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Chevron Corporation ÷ Sales and other operating revenues
= 100 × 15,625 ÷ 155,606 = 10.04%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Chevron Corporation ÷ Sales and other operating revenues
= 100 × 16,325 ÷ 155,606 = 10.49%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Chevron Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Total Asset Turnover

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 155,606  94,471  139,865  158,902  134,674 
Total assets 239,535  239,790  237,428  253,863  253,806 
Activity Ratio
Total asset turnover1 0.65 0.39 0.59 0.63 0.53
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenues 155,606  94,471  139,865  158,902  134,674 
Adjusted total assets 233,876  234,504  233,250  249,464  249,056 
Activity Ratio
Adjusted total asset turnover2 0.67 0.40 0.60 0.64 0.54

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 155,606 ÷ 239,535 = 0.65

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 155,606 ÷ 233,876 = 0.67

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Chevron Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 239,535  239,790  237,428  253,863  253,806 
Total Chevron Corporation stockholders’ equity 139,067  131,688  144,213  154,554  148,124 
Solvency Ratio
Financial leverage1 1.72 1.82 1.65 1.64 1.71
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 233,876  234,504  233,250  249,464  249,056 
Adjusted total Chevron Corporation stockholders’ equity 148,073  138,971  153,723  166,076  158,026 
Solvency Ratio
Adjusted financial leverage2 1.58 1.69 1.52 1.50 1.58

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Total Chevron Corporation stockholders’ equity
= 239,535 ÷ 139,067 = 1.72

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Chevron Corporation stockholders’ equity
= 233,876 ÷ 148,073 = 1.58

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. adjusted financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Adjusted Return on Equity (ROE)

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 15,625  (5,543) 2,924  14,824  9,195 
Total Chevron Corporation stockholders’ equity 139,067  131,688  144,213  154,554  148,124 
Profitability Ratio
ROE1 11.24% -4.21% 2.03% 9.59% 6.21%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 16,325  (9,151) 958  15,875  5,992 
Adjusted total Chevron Corporation stockholders’ equity 148,073  138,971  153,723  166,076  158,026 
Profitability Ratio
Adjusted ROE2 11.02% -6.58% 0.62% 9.56% 3.79%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net income (loss) attributable to Chevron Corporation ÷ Total Chevron Corporation stockholders’ equity
= 100 × 15,625 ÷ 139,067 = 11.24%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Chevron Corporation ÷ Adjusted total Chevron Corporation stockholders’ equity
= 100 × 16,325 ÷ 148,073 = 11.02%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Chevron Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 15,625  (5,543) 2,924  14,824  9,195 
Total assets 239,535  239,790  237,428  253,863  253,806 
Profitability Ratio
ROA1 6.52% -2.31% 1.23% 5.84% 3.62%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 16,325  (9,151) 958  15,875  5,992 
Adjusted total assets 233,876  234,504  233,250  249,464  249,056 
Profitability Ratio
Adjusted ROA2 6.98% -3.90% 0.41% 6.36% 2.41%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net income (loss) attributable to Chevron Corporation ÷ Total assets
= 100 × 15,625 ÷ 239,535 = 6.52%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Chevron Corporation ÷ Adjusted total assets
= 100 × 16,325 ÷ 233,876 = 6.98%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Chevron Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.