Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2005
- Analysis of Revenues
- Aggregate Accruals
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Solvency Ratios (Summary)
Based on: 10-K (reporting date: 2024-12-31), 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).
The analysis of the financial ratios over the five-year period reveals notable trends in the company's capital structure, leverage, and coverage ratios.
- Debt to Equity Ratios
- There is a clear downward trend in the debt to equity ratio, declining from 0.34 in 2020 to a low of 0.13 in 2023 before slightly increasing to 0.16 in 2024. When including operating lease liabilities, a similar pattern is observed with ratios decreasing from 0.37 to 0.16 over the period, indicating a consistent reduction in reliance on debt financing relative to equity.
- Debt to Capital Ratios
- Debt to capital ratios also exhibit a decreasing trend, starting at 0.25 in 2020 and dropping to 0.11 in 2023, before a modest rise to 0.14 in 2024. Including operating lease liabilities, the ratios follow a similar trajectory, suggesting an overall strengthening of the capital base and reduced financial risk.
- Debt to Assets Ratios
- These ratios decrease consistently from 0.18 in 2020 to 0.08 in 2023, rising slightly to 0.10 in 2024. Including operating lease liabilities, the ratios move from 0.20 to 0.10 and then to 0.12 respectively. This pattern indicates a gradual reduction in financial leverage relative to total assets but also hints at a small increase in debt level in the most recent year.
- Financial Leverage Ratio
- The financial leverage ratio declines from 1.82 in 2020 to 1.62 in 2022, then slightly rises to 1.69 in 2024. This suggests a modest reduction in the company’s use of borrowed funds relative to equity but some return to higher leverage in the last two years.
- Interest Coverage Ratio
- This ratio shows a significant improvement from a negative figure (-9.69) in 2020 to strong positive values peaking at 97.27 in 2022. It then decreases to 47.31 in 2024, still indicating ample capacity to cover interest expenses despite the recent decline.
- Fixed Charge Coverage Ratio
- Fixed charge coverage improves markedly from a negative ratio (-1.29) in 2020 to 18.28 in 2022. It subsequently declines to 7.81 by 2024, though it remains well above the negative or minimal coverage seen at the start, illustrating enhanced ability to meet fixed financial obligations over time.
Overall, the data depicts a company that steadily decreased its leverage and improved its ability to meet interest and fixed charges from 2020 to 2022. While marginal increases in leverage and declines in coverage ratios have occurred since then, the financial position remains stronger than at the beginning of the period.
Debt Ratios
Coverage Ratios
Debt to Equity
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Short-term debt | ||||||
Long-term debt, excluding debt due within one year | ||||||
Total debt | ||||||
Total Chevron Corporation stockholders’ equity | ||||||
Solvency Ratio | ||||||
Debt to equity1 | ||||||
Benchmarks | ||||||
Debt to Equity, Competitors2 | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Occidental Petroleum Corp. | ||||||
Debt to Equity, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Debt to Equity, Industry | ||||||
Energy |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to equity = Total debt ÷ Total Chevron Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reflects significant movements in the company's debt and equity structure over the five-year period ending in 2024. There is a clear downward trend in total debt, which decreased from $44,315 million in 2020 to a low of $20,836 million in 2023, followed by a slight increase to $24,541 million in 2024. This indicates a strategic effort to reduce financial leverage, enhancing the company's credit profile and potentially lowering financial risk.
Total stockholders' equity exhibited a consistent upward trajectory from 2020 through 2023, increasing from $131,688 million to $160,957 million. However, in 2024, equity saw a moderate decline to $152,318 million, suggesting either a payout or an adjustment in retained earnings or other comprehensive income components. Despite this decline, equity remains significantly higher than the levels observed at the start of the period.
The debt to equity ratio further confirms the deleveraging trend. This ratio declined steadily from 0.34 in 2020 to 0.13 in 2023, reflecting the growing equity base alongside reduced debt. The ratio rose slightly to 0.16 in 2024, consistent with the increase in total debt and the decrease in equity observed during that year. Overall, the ratio remains relatively low, indicating a conservative capital structure with a strong equity buffer.
- Total Debt
- Downward trend from 2020 to 2023, reaching the lowest point in 2023; moderate increase in 2024.
- Stockholders’ Equity
- Consistent growth from 2020 to 2023; slight decrease in 2024 but remaining above initial levels.
- Debt to Equity Ratio
- Steady decline through 2023, indicating reduced leverage; small uptick in 2024 corresponding with changes in debt and equity.
In summary, the company has demonstrated a focus on strengthening its financial position by lowering its debt levels and growing equity, resulting in improved leverage ratios. The slight reversals in debt and equity levels in 2024 warrant closer observation in future periods to assess their impact on the capital structure and overall financial stability.
Debt to Equity (including Operating Lease Liability)
Chevron Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Short-term debt | ||||||
Long-term debt, excluding debt due within one year | ||||||
Total debt | ||||||
Current lease liabilities, operating leases (included in Accrued liabilities) | ||||||
Noncurrent lease liabilities, operating leases (included in Deferred credits and other noncurrent obligations) | ||||||
Total debt (including operating lease liability) | ||||||
Total Chevron Corporation stockholders’ equity | ||||||
Solvency Ratio | ||||||
Debt to equity (including operating lease liability)1 | ||||||
Benchmarks | ||||||
Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Occidental Petroleum Corp. | ||||||
Debt to Equity (including Operating Lease Liability), Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Debt to Equity (including Operating Lease Liability), Industry | ||||||
Energy |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Chevron Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- Over the five-year period, total debt showed a marked decline from 48,221 million USD at the end of 2020 to a low of 26,070 million USD by the end of 2023. This represents a substantial reduction of approximately 46%, indicating a strategic focus on deleveraging. However, in 2024, total debt increased moderately to 29,611 million USD, suggesting a potential shift in capital structure or financing strategy during that year.
- Total Stockholders’ Equity
- Stockholders' equity demonstrated a consistent upward trend from 131,688 million USD at the end of 2020 to a peak of 160,957 million USD in 2023. This positive growth illustrates a strengthening equity base, likely resulting from retained earnings, capital injections, or asset revaluations. In 2024, there was a slight contraction to 152,318 million USD, indicating possible equity reductions or distributions to shareholders.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt to equity ratio decreased steadily from 0.37 in 2020 to 0.16 in 2023, reflecting improved financial leverage and reduced reliance on debt relative to equity. This trend aligns with the significant debt reduction and rising equity levels observed. However, in 2024, the ratio rose to 0.19, which, accompanied by an increase in total debt and a decline in equity, signals a modest reversal in leverage strategy or changes in financial policy.
Debt to Capital
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Short-term debt | ||||||
Long-term debt, excluding debt due within one year | ||||||
Total debt | ||||||
Total Chevron Corporation stockholders’ equity | ||||||
Total capital | ||||||
Solvency Ratio | ||||||
Debt to capital1 | ||||||
Benchmarks | ||||||
Debt to Capital, Competitors2 | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Occidental Petroleum Corp. | ||||||
Debt to Capital, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Debt to Capital, Industry | ||||||
Energy |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's debt management and capital structure over the five-year period.
- Total Debt
- There is a clear and consistent reduction in total debt from 2020 to 2023, decreasing significantly from 44,315 million US dollars to 20,836 million US dollars. However, in 2024, a reversal of this trend is observed as the total debt increases to 24,541 million US dollars.
- Total Capital
- Total capital remains relatively stable throughout the period, fluctuating within a narrow range. It starts at 176,003 million US dollars in 2020, experiences a slight decrease in 2021, then an increase in 2022, peaking at 182,621 million US dollars, before returning to 176,859 million US dollars in 2024. These moderate variations suggest steady capital base management.
- Debt to Capital Ratio
- The ratio of debt to capital demonstrates a downward trend from 0.25 in 2020 to a low of 0.11 in 2023, reflecting a considerable deleveraging over this period. This declining trend indicates improved financial leverage and potentially lower financial risk. However, in 2024, the ratio increases slightly to 0.14, corresponding with the rise in total debt observed in the same year.
Overall, the data suggests a strategic reduction in leverage over four years, enhancing financial stability, followed by a modest increase in debt and leverage in the final year. The relatively stable total capital base throughout the period supports a balanced approach to capital structure management.
Debt to Capital (including Operating Lease Liability)
Chevron Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Short-term debt | ||||||
Long-term debt, excluding debt due within one year | ||||||
Total debt | ||||||
Current lease liabilities, operating leases (included in Accrued liabilities) | ||||||
Noncurrent lease liabilities, operating leases (included in Deferred credits and other noncurrent obligations) | ||||||
Total debt (including operating lease liability) | ||||||
Total Chevron Corporation stockholders’ equity | ||||||
Total capital (including operating lease liability) | ||||||
Solvency Ratio | ||||||
Debt to capital (including operating lease liability)1 | ||||||
Benchmarks | ||||||
Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Occidental Petroleum Corp. | ||||||
Debt to Capital (including Operating Lease Liability), Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Debt to Capital (including Operating Lease Liability), Industry | ||||||
Energy |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt exhibited a declining trend from 48,221 million USD in 2020 to 26,070 million USD in 2023, indicating a substantial reduction in leverage over this period. However, in 2024, the total debt increased to 29,611 million USD, suggesting a partial reversal of the earlier debt reduction trend.
- Total capital (including operating lease liability)
- Total capital showed a general increase from 179,909 million USD in 2020 to 187,027 million USD in 2023, reflecting overall growth in the company's capital base. In 2024, the total capital decreased slightly to 181,929 million USD, which may reflect changes in financing structure or asset base.
- Debt to capital ratio (including operating lease liability)
- The debt-to-capital ratio declined notably from 0.27 in 2020 to 0.14 in 2023, demonstrating a strengthening of the company’s capital structure with reduced reliance on debt financing. In 2024, this ratio increased slightly to 0.16, indicating a minor increase in leverage relative to capital but remaining significantly below the 2020 level.
Debt to Assets
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Short-term debt | ||||||
Long-term debt, excluding debt due within one year | ||||||
Total debt | ||||||
Total assets | ||||||
Solvency Ratio | ||||||
Debt to assets1 | ||||||
Benchmarks | ||||||
Debt to Assets, Competitors2 | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Occidental Petroleum Corp. | ||||||
Debt to Assets, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Debt to Assets, Industry | ||||||
Energy |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data over the analyzed periods reveal some notable trends regarding the company's debt and asset profile.
- Total Debt
- Total debt shows a marked decrease from the end of 2020 through 2023, dropping from 44,315 million USD to 20,836 million USD, indicating consistent debt reduction efforts. However, there is a reversal in 2024, with debt rising to 24,541 million USD, suggesting either new borrowing or re-leveraging in that period.
- Total Assets
- Total assets exhibit moderate growth from 2020 to 2023, increasing from 239,790 million USD to 261,632 million USD, reflecting asset growth or acquisition activities. In 2024, total assets slightly decline to 256,938 million USD, which could imply asset disposals, depreciation, or valuation changes.
- Debt to Assets Ratio
- This ratio consistently decreases from 0.18 in 2020 to a low of 0.08 in 2023, reflecting reducing leverage and a strengthening asset base relative to debt. In 2024, the ratio increases to 0.10, aligning with the noted increase in total debt and slight decrease in assets, indicating a modest uptick in leverage.
Overall, the trends suggest a strategic focus on debt reduction and asset growth from 2020 through 2023, improving the leverage position. The developments in 2024 indicate a moderate shift with increased debt and slightly reduced assets, leading to a small increase in leverage. This pattern could reflect adjusting financial policies or responding to market conditions requiring additional financing.
Debt to Assets (including Operating Lease Liability)
Chevron Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Short-term debt | ||||||
Long-term debt, excluding debt due within one year | ||||||
Total debt | ||||||
Current lease liabilities, operating leases (included in Accrued liabilities) | ||||||
Noncurrent lease liabilities, operating leases (included in Deferred credits and other noncurrent obligations) | ||||||
Total debt (including operating lease liability) | ||||||
Total assets | ||||||
Solvency Ratio | ||||||
Debt to assets (including operating lease liability)1 | ||||||
Benchmarks | ||||||
Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Occidental Petroleum Corp. | ||||||
Debt to Assets (including Operating Lease Liability), Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Debt to Assets (including Operating Lease Liability), Industry | ||||||
Energy |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable trends concerning the company's total debt, total assets, and leverage ratio over the five-year period.
- Total Debt (including operating lease liability)
- The total debt decreased significantly from 48,221 million US dollars at the end of 2020 to 26,070 million US dollars by the end of 2023. This steady reduction suggests a strategic deleveraging effort or repayment of liabilities over these years. However, there is an upward movement in debt to 29,611 million US dollars in 2024, indicating an increase in borrowing or lease obligations during the most recent year.
- Total Assets
- Total assets showed a slight fluctuation but generally trended upwards from 239,790 million US dollars in 2020 to a peak of 261,632 million US dollars in 2023 before contracting slightly to 256,938 million US dollars in 2024. This indicates a modest expansion of the asset base over the period, with a mild reduction in the final year that may suggest asset disposals or other factors affecting asset size.
- Debt to Assets Ratio (including operating lease liability)
- The debt-to-assets ratio has steadily decreased from 0.20 in 2020 to 0.10 in 2023, reflecting a significant improvement in the company’s leverage position as debt was reduced more rapidly than assets grew. The ratio slightly rose to 0.12 in 2024, consistent with the observed increase in total debt relative to total assets, suggesting a cautious increase in financial leverage after a period of deleveraging.
Overall, the data indicates a deliberate reduction in debt levels and improved leverage from 2020 through 2023, accompanied by modest asset growth. The slight reversal of these trends in 2024 may warrant further examination to understand the underlying drivers of increased debt and the corresponding impact on financial stability.
Financial Leverage
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Total assets | ||||||
Total Chevron Corporation stockholders’ equity | ||||||
Solvency Ratio | ||||||
Financial leverage1 | ||||||
Benchmarks | ||||||
Financial Leverage, Competitors2 | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Occidental Petroleum Corp. | ||||||
Financial Leverage, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Financial Leverage, Industry | ||||||
Energy |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Financial leverage = Total assets ÷ Total Chevron Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates that total assets have shown a gradual upward trend from 2020 through 2023, increasing from $239,790 million to $261,632 million, followed by a slight decline to $256,938 million in 2024. This suggests that asset growth was consistent over the initial four-year period, with a minor contraction in the most recent year.
Stockholders’ equity also demonstrates a generally positive trajectory during the same period. Equity rose from $131,688 million in 2020 to a peak of $160,957 million in 2023, before retreating to $152,318 million in 2024. The increase over the four years indicates retained earnings or capital inflows, while the slight decrease in 2024 may reflect distributions, losses, or other equity adjustments.
Concurrently, the financial leverage ratio, a measure of the company’s debt relative to equity, declined from 1.82 in 2020 to a low of 1.62 in 2022, implying a reduction in leverage or an improvement in equity financing during that timeframe. The ratio increased slightly to 1.63 in 2023 and then further to 1.69 in 2024, suggesting a modest return to higher leverage levels, though remaining below the 2020 figure. This fluctuation in leverage indicates adjustments in the company’s capital structure, balancing between debt and equity financing.
Overall, the company exhibited growth in asset base and equity over the initial years, with a slight pullback in 2024 in both metrics. Financial leverage showed a trend toward lower leverage through 2022, followed by increased leverage in the last two years, which could represent strategic financial decisions in capital management aligned with market or operational conditions.
Interest Coverage
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Net income (loss) attributable to Chevron Corporation | ||||||
Add: Net income attributable to noncontrolling interest | ||||||
Add: Income tax expense | ||||||
Add: Interest and debt expense | ||||||
Earnings before interest and tax (EBIT) | ||||||
Solvency Ratio | ||||||
Interest coverage1 | ||||||
Benchmarks | ||||||
Interest Coverage, Competitors2 | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Occidental Petroleum Corp. | ||||||
Interest Coverage, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Interest Coverage, Industry | ||||||
Energy |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT shows a significant turnaround over the observed period. In 2020, it was deeply negative at -6,756 million USD, suggesting operational losses. However, there was a dramatic improvement in 2021, with EBIT rising to 22,351 million USD. This positive trajectory continued in 2022, reaching a peak of 50,190 million USD. Subsequently, EBIT declined in both 2023 and 2024 to 30,053 million USD and 28,100 million USD, respectively, though it remained substantially higher than in 2020 and 2021.
- Interest and debt expense
- Interest and debt expense remained relatively stable, ranging from 469 million USD to 712 million USD during the five-year timeframe. The expense slightly decreased in 2022 and 2023 compared to the initial years, but experienced a modest increase in 2024 to 594 million USD. Overall, the interest expense did not exhibit any extreme volatility.
- Interest coverage ratio
- The interest coverage ratio improved markedly from a negative value of -9.69 in 2020, reflecting an inability to cover interest expenses through EBIT, to an exceptionally high ratio of 31.39 in 2021. This ratio peaked impressively at 97.27 in 2022, indicating very strong coverage of interest costs. Afterward, it declined to 64.08 in 2023 and further to 47.31 in 2024, signaling reduced but still robust ability to service debt interest from earnings.
Fixed Charge Coverage
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Net income (loss) attributable to Chevron Corporation | ||||||
Add: Net income attributable to noncontrolling interest | ||||||
Add: Income tax expense | ||||||
Add: Interest and debt expense | ||||||
Earnings before interest and tax (EBIT) | ||||||
Add: Operating lease costs | ||||||
Earnings before fixed charges and tax | ||||||
Interest and debt expense | ||||||
Operating lease costs | ||||||
Fixed charges | ||||||
Solvency Ratio | ||||||
Fixed charge coverage1 | ||||||
Benchmarks | ||||||
Fixed Charge Coverage, Competitors2 | ||||||
ConocoPhillips | ||||||
Exxon Mobil Corp. | ||||||
Occidental Petroleum Corp. | ||||||
Fixed Charge Coverage, Sector | ||||||
Oil, Gas & Consumable Fuels | ||||||
Fixed Charge Coverage, Industry | ||||||
Energy |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax exhibited a significant turnaround over the observed period. Initially, there was a substantial negative figure in 2020, indicating a loss position. This shifted markedly to a positive and growing figure in 2021, reaching a peak in 2022. However, from 2022 onwards, there was a notable decline in earnings, decreasing in both 2023 and 2024.
- Fixed charges
- Fixed charges showed moderate fluctuations with an overall increasing trend. Beginning at a moderate level in 2020, there was a slight decline in 2021 and 2022, followed by consecutive increases in 2023 and 2024, reaching the highest point at the end of the period.
- Fixed charge coverage ratio
- The fixed charge coverage ratio improved dramatically from a negative position in 2020 to a strong positive peak in 2022, aligning with the earnings trend. Subsequent years saw a decline in coverage ratio, correlating with reductions in earnings before fixed charges and tax, yet it remained well above the negative levels initially seen, indicating continued ability to cover fixed charges despite declining margins.
- Summary
- The overall financial performance suggests a recovery from significant losses in 2020 to robust profitability in 2021 and 2022. Despite the subsequent decline in earnings, the company maintained positive fixed charge coverage throughout 2023 and 2024, reflecting sustained operational capability to meet fixed financial obligations. The rising fixed charges, particularly in the latter years, could suggest increased financial commitments or cost pressures that may warrant closer monitoring.