Stock Analysis on Net

Chevron Corp. (NYSE:CVX)

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

Chevron Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 261,632 257,709 239,535 239,790 237,428
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 261,632 257,709 239,535 239,790 237,428
Adjustment to Total Debt
Total debt (as reported) 20,836 23,339 31,369 44,315 26,973
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current lease liabilities, operating leases (included in Accrued liabilities) 1,538 1,111 995 1,291 1,277
Add: Noncurrent lease liabilities, operating leases (included in Deferred credits and other noncurrent obligations) 3,696 2,920 2,508 2,615 2,608
Total debt (adjusted) 26,070 27,370 34,872 48,221 30,858

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).

1, 2 Equal to total present value of future operating lease payments.


Chevron Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Chevron Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.75 0.91 0.65 0.39 0.59
Adjusted total asset turnover 0.75 0.91 0.65 0.39 0.59
Debt to Equity2
Reported debt to equity 0.13 0.15 0.23 0.34 0.19
Adjusted debt to equity 0.16 0.17 0.25 0.37 0.21
Return on Assets3 (ROA)
Reported ROA 8.17% 13.76% 6.52% -2.31% 1.23%
Adjusted ROA 8.17% 13.76% 6.52% -2.31% 1.23%

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).

Financial 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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Chevron Corp. adjusted debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Chevron Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Chevron Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 196,913 235,717 155,606 94,471 139,865
Total assets 261,632 257,709 239,535 239,790 237,428
Activity Ratio
Total asset turnover1 0.75 0.91 0.65 0.39 0.59
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Sales and other operating revenues 196,913 235,717 155,606 94,471 139,865
Adjusted total assets 261,632 257,709 239,535 239,790 237,428
Activity Ratio
Adjusted total asset turnover2 0.75 0.91 0.65 0.39 0.59

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 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 196,913 ÷ 261,632 = 0.75

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 196,913 ÷ 261,632 = 0.75

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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 20,836 23,339 31,369 44,315 26,973
Total Chevron Corporation stockholders’ equity 160,957 159,282 139,067 131,688 144,213
Solvency Ratio
Debt to equity1 0.13 0.15 0.23 0.34 0.19
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 26,070 27,370 34,872 48,221 30,858
Total Chevron Corporation stockholders’ equity 160,957 159,282 139,067 131,688 144,213
Solvency Ratio
Adjusted debt to equity2 0.16 0.17 0.25 0.37 0.21

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 Debt to equity = Total debt ÷ Total Chevron Corporation stockholders’ equity
= 20,836 ÷ 160,957 = 0.13

2 Adjusted debt to equity = Adjusted total debt ÷ Total Chevron Corporation stockholders’ equity
= 26,070 ÷ 160,957 = 0.16

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Chevron Corp. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 21,369 35,465 15,625 (5,543) 2,924
Total assets 261,632 257,709 239,535 239,790 237,428
Profitability Ratio
ROA1 8.17% 13.76% 6.52% -2.31% 1.23%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Chevron Corporation 21,369 35,465 15,625 (5,543) 2,924
Adjusted total assets 261,632 257,709 239,535 239,790 237,428
Profitability Ratio
Adjusted ROA2 8.17% 13.76% 6.52% -2.31% 1.23%

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 ROA = 100 × Net income (loss) attributable to Chevron Corporation ÷ Total assets
= 100 × 21,369 ÷ 261,632 = 8.17%

2 Adjusted ROA = 100 × Net income (loss) attributable to Chevron Corporation ÷ Adjusted total assets
= 100 × 21,369 ÷ 261,632 = 8.17%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Chevron Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.