Stock Analysis on Net
Stock Analysis on Net

Chevron Corp. (NYSE:CVX)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel LibreOffice Calc

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Chevron Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Dec 31, 2021 11.24% = 6.52% × 1.72
Dec 31, 2020 -4.21% = -2.31% × 1.82
Dec 31, 2019 2.03% = 1.23% × 1.65
Dec 31, 2018 9.59% = 5.84% × 1.64
Dec 31, 2017 6.21% = 3.62% × 1.71

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).

Three-Component Disaggregation of ROE

Chevron Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 11.24% = 10.04% × 0.65 × 1.72
Dec 31, 2020 -4.21% = -5.87% × 0.39 × 1.82
Dec 31, 2019 2.03% = 2.09% × 0.59 × 1.65
Dec 31, 2018 9.59% = 9.33% × 0.63 × 1.64
Dec 31, 2017 6.21% = 6.83% × 0.53 × 1.71

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).

Five-Component Disaggregation of ROE

Chevron Corp., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 11.24% = 0.72 × 0.97 × 14.32% × 0.65 × 1.72
Dec 31, 2020 -4.21% = — × — × -7.13% × 0.39 × 1.82
Dec 31, 2019 2.03% = 0.52 × 0.88 × 4.59% × 0.59 × 1.65
Dec 31, 2018 9.59% = 0.72 × 0.96 × 13.40% × 0.63 × 1.64
Dec 31, 2017 6.21% = 1.01 × 0.97 × 7.02% × 0.53 × 1.71

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).

Two-Component Disaggregation of ROA

Chevron Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2021 6.52% = 10.04% × 0.65
Dec 31, 2020 -2.31% = -5.87% × 0.39
Dec 31, 2019 1.23% = 2.09% × 0.59
Dec 31, 2018 5.84% = 9.33% × 0.63
Dec 31, 2017 3.62% = 6.83% × 0.53

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).

Four-Component Disaggregation of ROA

Chevron Corp., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2021 6.52% = 0.72 × 0.97 × 14.32% × 0.65
Dec 31, 2020 -2.31% = — × — × -7.13% × 0.39
Dec 31, 2019 1.23% = 0.52 × 0.88 × 4.59% × 0.59
Dec 31, 2018 5.84% = 0.72 × 0.96 × 13.40% × 0.63
Dec 31, 2017 3.62% = 1.01 × 0.97 × 7.02% × 0.53

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).

Disaggregation of Net Profit Margin

Chevron Corp., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2021 10.04% = 0.72 × 0.97 × 14.32%
Dec 31, 2020 -5.87% = — × — × -7.13%
Dec 31, 2019 2.09% = 0.52 × 0.88 × 4.59%
Dec 31, 2018 9.33% = 0.72 × 0.96 × 13.40%
Dec 31, 2017 6.83% = 1.01 × 0.97 × 7.02%

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).