Stock Analysis on Net
Stock Analysis on Net
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Chevron Corp. (NYSE:CVX)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Chevron Corp., adjustment to net income (loss) attributable to Chevron Corporation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income (loss) attributable to Chevron Corporation (as reported) 2,924  14,824  9,195  (497) 4,587 
Add: Unrealized holding gain (loss) on securities 2  (5) (3) 27  (21)
Net income (loss) attributable to Chevron Corporation (adjusted) 2,926  14,819  9,192  (470) 4,566 

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Chevron Corp., adjusted profitability ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 2.09% 9.33% 6.83% -0.45% 3.53%
Adjusted net profit margin 2.09% 9.33% 6.83% -0.43% 3.51%
Return on Equity (ROE)
Reported ROE 2.03% 9.59% 6.21% -0.34% 3.00%
Adjusted ROE 2.03% 9.59% 6.21% -0.32% 2.99%
Return on Assets (ROA)
Reported ROA 1.23% 5.84% 3.62% -0.19% 1.72%
Adjusted ROA 1.23% 5.84% 3.62% -0.18% 1.72%

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).

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

Chevron Corp., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 2,926  14,819  9,192  (470) 4,566 
Sales and other operating revenues 139,865  158,902  134,674  110,215  129,925 
Profitability Ratio
Adjusted net profit margin2 2.09% 9.33% 6.83% -0.43% 3.51%

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 × 2,926 ÷ 139,865 = 2.09%

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

Adjusted Return on Equity (ROE)

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 2,926  14,819  9,192  (470) 4,566 
Total Chevron Corporation stockholders’ equity 144,213  154,554  148,124  145,556  152,716 
Profitability Ratio
Adjusted ROE2 2.03% 9.59% 6.21% -0.32% 2.99%

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 ÷ Total Chevron Corporation stockholders’ equity
= 100 × 2,926 ÷ 144,213 = 2.03%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by 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)

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Chevron Corporation 2,926  14,819  9,192  (470) 4,566 
Total assets 237,428  253,863  253,806  260,078  266,103 
Profitability Ratio
Adjusted ROA2 1.23% 5.84% 3.62% -0.18% 1.72%

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 ÷ Total assets
= 100 × 2,926 ÷ 237,428 = 1.23%

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