Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Chevron Corp. pages available for free this week:
- 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
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Chevron Corp. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Chevron Corp., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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 given financial ratios over the five-year period reveals patterns in the efficiency of asset and equity utilization.
- Net Fixed Asset Turnover
- The ratio demonstrates a significant increase from 0.6 in 2020 to a peak of 1.64 in 2022, indicating improved revenue generation relative to net fixed assets during that period. However, it declines to 1.28 in 2023 and slightly increases to 1.31 in 2024. This trend suggests that after a period of enhanced efficiency, there was a moderate reduction in asset productivity, followed by stabilization.
- Net Fixed Asset Turnover Including Operating Lease (Right-of-Use Asset)
- This ratio follows a similar trajectory to the net fixed asset turnover, starting at 0.59 in 2020 and rising to 1.59 in 2022. The value then decreases to 1.24 in 2023, with a minor increase to 1.26 in 2024. The close correlation with the previous ratio suggests consistent treatment of leased assets in assessing fixed asset efficiency.
- Total Asset Turnover
- The total asset turnover ratio increases steadily from 0.39 in 2020 to 0.91 in 2022, reflecting improved overall asset usage in generating sales. However, there is a noticeable decline to 0.75 in 2023, which remains flat in 2024. This indicates a reduction and then stabilization in asset efficiency post-2022.
- Equity Turnover
- Equity turnover rises significantly from 0.72 in 2020 to 1.48 in 2022, suggesting enhanced effectiveness in generating revenue from equity. Subsequently, it dips to 1.22 in 2023 but recovers slightly to 1.27 in 2024. This pattern reflects a peak in equity utilization efficiency in 2022, followed by a moderate decline and partial recovery.
Net Fixed Asset Turnover
Chevron Corp., net fixed asset turnover 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) | ||||||
| Sales and other operating revenues | ||||||
| Properties, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover, 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
Net fixed asset turnover = Sales and other operating revenues ÷ Properties, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in sales and asset management over the five-year period. Sales and other operating revenues demonstrate a clear upward trend from 2020 through 2022, increasing significantly from approximately $94.5 billion to nearly $235.7 billion. However, this trend reverses in the following years, with revenues declining to around $196.9 billion in 2023 and continuing a slight drop to $193.4 billion in 2024. This indicates a peak in sales performance in 2022 followed by a downward adjustment in subsequent years.
Regarding the investment in properties, plant, and equipment (PPE), the net value shows a general decline from 2020 to 2022, decreasing from about $156.6 billion to $143.6 billion. This reduction is interrupted by a partial recovery in 2023 to $153.6 billion, but the value then decreases again in 2024 to approximately $147.8 billion. The fluctuations in net PPE suggest periods of asset disposal or depreciation exceeding new investments, followed by some capital expenditure, and then mild asset reduction.
The net fixed asset turnover ratio, which measures the efficiency of net PPE in generating sales, aligns with the revenue and asset trends in a noteworthy manner. This ratio increases sharply from 0.6 in 2020 to 1.64 in 2022, reflecting improved utilization of fixed assets alongside rising revenues. Subsequently, it declines to 1.28 in 2023 but slightly recovers to 1.31 in 2024. This pattern corresponds with the peak and subsequent decline in sales, indicating that asset efficiency was at its highest when revenues peaked and then diminished as sales decreased, despite smaller changes in asset values.
Overall, the data suggest a period of aggressive revenue growth and enhanced asset utilization culminating in 2022, followed by a moderation in sales and relatively stable yet slightly reduced investment in fixed assets. The company's efficiency in leveraging its property, plant, and equipment for sales generation improved markedly during the initial growth phase but faced some decline as sales contracted in the latter years.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Chevron Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Properties, plant and equipment, net | ||||||
| Right-of-use assets, operating leases (included in Deferred charges and other assets) | ||||||
| Properties, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), 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
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales and other operating revenues ÷ Properties, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The analysis of financial data over the five-year period reveals distinct trends in sales, asset levels, and asset utilization efficiency.
- Sales and Other Operating Revenues
- Revenues showed significant growth from 2020 to 2022, increasing from approximately $94.5 billion to over $235.7 billion. This represents a more than twofold rise within two years. However, after peaking in 2022, revenues declined notably in the subsequent years, settling around $193.4 billion by the end of 2024. The decline from the peak year suggests a contraction or normalization following a period of rapid growth.
- Properties, Plant and Equipment, Net
- The net value of properties, plant, and equipment declined modestly between 2020 and 2022, falling from about $160.6 billion to $147.9 billion. Following this decrease, the value experienced some recovery in 2023 to approximately $159.0 billion but then slightly dropped again in 2024 to $153.1 billion. The overall trend indicates some asset reduction or depreciation over the period, with fluctuations that may reflect investment cycles or asset disposals and acquisitions.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio serves as an indicator of how efficiently the company is using its fixed assets to generate revenue. This ratio rose significantly from 0.59 in 2020 to a peak of 1.59 in 2022, implying markedly improved efficiency and utilization during that period. The ratio then declined to levels around 1.24 and 1.26 in 2023 and 2024, respectively, but still remained substantially higher than the 2020 baseline. This pattern corresponds with the fluctuations in both revenue and asset base and suggests that asset productivity saw enhancement even as asset values experienced some decline.
In summary, the period was marked by an initial phase of strong revenue growth accompanied by increasing efficiency in asset usage. This was followed by a reduction in sales revenues and a partial recovery in asset values whilst maintaining a relatively high level of asset turnover efficiency compared to the initial year.
Total Asset Turnover
Chevron Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Total Asset Turnover, 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
Total asset turnover = Sales and other operating revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data shows a varying trend in sales, total assets, and asset turnover ratios over five years.
- Sales and other operating revenues
- There is a significant increase from 94,471 million US dollars in 2020 to a peak of 235,717 million US dollars in 2022. However, after 2022, sales decline to 196,913 million US dollars in 2023 and further slightly decrease to 193,414 million US dollars in 2024. The pattern indicates a rapid growth phase followed by a moderate downturn in recent years.
- Total assets
- Total assets remained relatively stable between 2020 and 2021, changing slightly from 239,790 million to 239,535 million US dollars. The assets then increased to a peak of 261,632 million US dollars in 2023 but saw a marginal decline to 256,938 million US dollars in 2024. Overall, this points to a gradual accumulation of assets over the period, with a slight contraction at the end.
- Total asset turnover
- This ratio demonstrates strong growth from 0.39 in 2020 up to 0.91 in 2022, indicating improved efficiency in generating sales from the assets base. However, there is a decline to 0.75 in 2023, which remains steady into 2024. The rise until 2022 suggests enhanced productivity of assets, while the subsequent decline may reflect decreased efficiency or the impact of lower sales.
Equity Turnover
Chevron Corp., equity turnover 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) | ||||||
| Sales and other operating revenues | ||||||
| Total Chevron Corporation stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Equity Turnover, 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
Equity turnover = Sales and other operating revenues ÷ Total Chevron Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in key performance indicators over the five-year period. The patterns in sales revenues, stockholders’ equity, and equity turnover offer insights into the company's operational efficiency and capital structure management.
- Sales and Other Operating Revenues
- Sales and other operating revenues showed substantial growth from 2020 to 2022, increasing from approximately $94.5 billion to $235.7 billion. This rise indicates strong revenue expansion during this period. However, revenues declined in the subsequent two years, dropping to about $196.9 billion in 2023 and further slightly to $193.4 billion in 2024. Despite the decrease, the revenue levels in 2023 and 2024 remain significantly higher than those in 2020 and 2021, suggesting that the company maintained a relatively elevated revenue base despite recent declines.
- Total Chevron Corporation Stockholders’ Equity
- Stockholders’ equity experienced a general upward trend from 2020 to 2023, growing from roughly $131.7 billion to $161.0 billion. This increase signals an improvement in the company's net asset value over the period. However, in 2024, equity decreased to about $152.3 billion, indicating a potential return of value to shareholders, capital restructuring, or other equity impacts. Overall, the equity base remains substantially higher in 2024 compared to 2020, reflecting long-term positive growth in shareholder investment.
- Equity Turnover
- The equity turnover ratio, which measures how efficiently the company uses equity to generate revenue, strengthened significantly from 0.72 in 2020 to 1.48 in 2022. This suggests enhanced efficiency in leveraging shareholder equity during this period. However, in 2023, this ratio declined to 1.22 before slightly increasing again to 1.27 in 2024. These recent changes indicate a moderation after a peak in 2022 but still reflect higher operational efficiency compared to the starting point in 2020.