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

Chevron Corp. (NYSE:CVX)

Return on Capital (ROC)

Advanced level

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company’s debt and equity structure. It measures business productivity performance.

Return on Invested Capital (ROIC)

Chevron Corp., ROIC calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 864  18,189  7,468  (4,972) (845)
Invested capital2 195,762  212,825  208,093  214,697  219,665 
Performance Ratio
ROIC3 0.44% 8.55% 3.59% -2.32% -0.38%
Benchmarks
ROIC, Competitors4
ConocoPhillips 12.71% 12.06% -6.26% -6.29% -7.81%
Exxon Mobil Corp. 5.40% 6.64% 5.05% 3.14% 3.26%

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 864 ÷ 195,762 = 0.44%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Chevron Corp.’s ROIC improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Decomposition of ROIC

Chevron Corp., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2019 0.44% = 4.09% × 0.71 × 15.11%
Dec 31, 2018 8.55% = 14.50% × 0.75 × 78.95%
Dec 31, 2017 3.59% = 8.03% × 0.65 × 69.07%
Dec 31, 2016 -2.32% = -2.47% × 0.51 × 100.00%
Dec 31, 2015 -0.38% = 0.95% × 0.59 × -68.77%

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2019 year is the increase in effective cash tax rate (CTR).

Operating Profit Margin (OPM)

Chevron Corp., OPM calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 864  18,189  7,468  (4,972) (845)
Add: Cash operating taxes2 4,851  4,851  3,344  2,251  2,073 
Net operating profit before taxes (NOPBT) 5,714  23,040  10,812  (2,721) 1,229 
 
Sales and other operating revenues 139,865  158,902  134,674  110,215  129,925 
Profitability Ratio
OPM3 4.09% 14.50% 8.03% -2.47% 0.95%
Benchmarks
OPM, Competitors4
ConocoPhillips 31.34% 29.17% -5.45% -18.03% -20.96%
Exxon Mobil Corp. 8.83% 10.49% 9.34% 5.89% 6.36%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
OPM = 100 × NOPBT ÷ Sales and other operating revenues
= 100 × 5,714 ÷ 139,865 = 4.09%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Chevron Corp.’s OPM improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Turnover of Capital (TO)

Chevron Corp., TO calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Sales and other operating revenues 139,865  158,902  134,674  110,215  129,925 
Invested capital1 195,762  212,825  208,093  214,697  219,665 
Efficiency Ratio
TO2 0.71 0.75 0.65 0.51 0.59
Benchmarks
TO, Competitors3
ConocoPhillips 0.56 0.62 0.48 0.30 0.35
Exxon Mobil Corp. 0.84 0.95 0.81 0.78 0.93

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).

1 Invested capital. See details »

2 2019 Calculation
TO = Sales and other operating revenues ÷ Invested capital
= 139,865 ÷ 195,762 = 0.71

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Chevron Corp.’s TO improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Effective Cash Tax Rate (CTR)

Chevron Corp., CTR calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 864  18,189  7,468  (4,972) (845)
Add: Cash operating taxes2 4,851  4,851  3,344  2,251  2,073 
Net operating profit before taxes (NOPBT) 5,714  23,040  10,812  (2,721) 1,229 
Tax Rate
CTR3 84.89% 21.05% 30.93% — 168.77%
Benchmarks
CTR, Competitors4
ConocoPhillips 27.88% 33.22% — — —
Exxon Mobil Corp. 27.33% 33.69% 33.64% 31.59% 44.79%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 4,851 ÷ 5,714 = 84.89%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Chevron Corp.’s CTR decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.