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.
Long-term Activity Ratios (Summary)
Chevron Corp., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
An examination of long-term investment activity ratios reveals fluctuating performance across the five-year period. Generally, ratios increased from 2021 to 2022, followed by a period of stabilization or decline through 2025. These shifts suggest evolving efficiency in asset utilization and equity management.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates considerable volatility. It increased notably from 1.06 in 2021 to 1.64 in 2022, indicating improved efficiency in generating revenue from fixed assets. However, this was followed by a decrease to 1.28 in 2023, a slight increase to 1.31 in 2024, and a more substantial decline to 0.84 in 2025. This final decrease suggests a diminishing ability to generate sales from fixed assets, potentially due to factors such as asset obsolescence, reduced demand, or increased asset base without corresponding revenue growth.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio, inclusive of operating leases and right-of-use assets, mirrors the trend observed in the standard net fixed asset turnover. An increase from 1.03 in 2021 to 1.59 in 2022 is followed by a decline to 1.24 in 2023, a slight increase to 1.26 in 2024, and a decrease to 0.82 in 2025. The inclusion of lease obligations appears to amplify the overall trend, suggesting that leased assets contribute to the observed fluctuations in asset utilization efficiency.
- Total Asset Turnover
- The total asset turnover ratio exhibits a similar pattern. It rose from 0.65 in 2021 to 0.91 in 2022, then decreased to 0.75 in both 2023 and 2024, before falling to 0.57 in 2025. This indicates a declining trend in the ability to generate sales from all assets, potentially reflecting inefficiencies in working capital management or a shift in asset composition. The ratio’s decline in 2025 is particularly noteworthy.
- Equity Turnover
- The equity turnover ratio also increased from 2021 to 2022, moving from 1.12 to 1.48. It then stabilized around 1.22-1.27 for 2023 and 2024, before decreasing to 0.99 in 2025. This suggests that the company’s ability to generate sales from shareholder equity diminished in the final year of the period, potentially indicating reduced profitability or increased equity base.
In summary, the observed trends suggest a period of improved asset utilization efficiency in 2022, followed by a period of stabilization and then a decline across all measured ratios through 2025. Further investigation is warranted to determine the underlying causes of these shifts and their potential impact on future performance.
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Net Fixed Asset Turnover
Chevron Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | 184,432) | 193,414) | 196,913) | 235,717) | 155,606) | |
| Properties, plant and equipment, net | 219,729) | 147,799) | 153,619) | 143,591) | 146,961) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 0.84 | 1.31 | 1.28 | 1.64 | 1.06 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| ConocoPhillips | 0.63 | 0.58 | 0.80 | 1.21 | 0.71 | |
| Exxon Mobil Corp. | 1.08 | 1.15 | 1.56 | 1.95 | 1.28 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.93 | 1.09 | 1.34 | 1.73 | 1.12 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | 0.97 | 1.15 | 1.39 | 1.77 | 1.15 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover = Sales and other operating revenues ÷ Properties, plant and equipment, net
= 184,432 ÷ 219,729 = 0.84
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio increased significantly before declining again, suggesting shifts in the efficiency with which fixed assets generated sales.
- Overall Trend
- The net fixed asset turnover ratio began at 1.06 in 2021, rose substantially to 1.64 in 2022, then decreased to 1.28 in 2023 and 1.31 in 2024, before falling to 0.84 in 2025. This indicates a period of improving asset utilization followed by a subsequent decline.
- 2021 to 2022
- A marked increase in the ratio from 2021 to 2022 suggests a significant improvement in the generation of sales revenue from the company’s fixed assets. This could be attributed to increased sales volume, improved operational efficiency, or a combination of both. The increase from 1.06 to 1.64 represents a substantial gain in asset utilization.
- 2022 to 2025
- Following the peak in 2022, the ratio experienced a decline over the subsequent three years. While the decrease from 1.64 to 1.31 between 2022 and 2024 was moderate, the drop to 0.84 in 2025 is more pronounced. This suggests a weakening relationship between fixed assets and sales revenue. Potential causes include a decrease in sales, an increase in fixed assets without a corresponding increase in sales, or a combination of these factors.
- Sales and Asset Relationship
- Sales and other operating revenues increased significantly from 2021 to 2022, while properties, plant, and equipment, net, decreased slightly. This dynamic likely contributed to the improved turnover ratio in 2022. However, from 2022 to 2025, sales decreased, and properties, plant, and equipment, net, increased substantially, particularly in 2025. This shift in the relationship between sales and fixed assets likely drove the declining turnover ratio observed in the later years.
The substantial decrease in the net fixed asset turnover ratio in 2025 warrants further investigation to determine the underlying causes and potential implications for future performance.
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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, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | 184,432) | 193,414) | 196,913) | 235,717) | 155,606) | |
| Properties, plant and equipment, net | 219,729) | 147,799) | 153,619) | 143,591) | 146,961) | |
| Right-of-use assets, operating leases (included in Deferred charges and other assets) | 6,054) | 5,315) | 5,422) | 4,262) | 3,668) | |
| Properties, plant and equipment, net (including operating lease, right-of-use asset) | 225,783) | 153,114) | 159,041) | 147,853) | 150,629) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.82 | 1.26 | 1.24 | 1.59 | 1.03 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| ConocoPhillips | 0.63 | 0.57 | 0.79 | 1.20 | 0.70 | |
| Exxon Mobil Corp. | 1.06 | 1.13 | 1.51 | 1.89 | 1.24 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.91 | 1.07 | 1.30 | 1.68 | 1.09 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | 0.95 | 1.12 | 1.35 | 1.72 | 1.12 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 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)
= 184,432 ÷ 225,783 = 0.82
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using properties, plant, and equipment net of accumulated depreciation (including operating lease and right-of-use assets), demonstrates considerable fluctuation over the five-year period. Sales and other operating revenues and the value of net fixed assets both influence this ratio, and their combined movement shapes the observed trends.
- Overall Trend
- The ratio initially increased significantly, followed by a period of relative stability, and then a substantial decline. This suggests changing efficiency in asset utilization or shifts in the capital intensity of revenue generation.
- 2021 to 2022
- A marked increase in the net fixed asset turnover ratio is evident, rising from 1.03 in 2021 to 1.59 in 2022. This improvement coincided with a substantial increase in sales and other operating revenues (from US$155,606 million to US$235,717 million) while net fixed assets decreased slightly. This indicates a more efficient utilization of existing fixed assets to generate revenue during this period.
- 2022 to 2023
- The ratio decreased from 1.59 in 2022 to 1.24 in 2023. This decline occurred despite a decrease in sales and other operating revenues (to US$196,913 million) and an increase in net fixed assets (to US$159,041 million). The increase in fixed assets, coupled with lower sales, contributed to the reduced turnover.
- 2023 to 2024
- The ratio remained relatively stable between 2023 and 2024, moving from 1.24 to 1.26. Sales and other operating revenues experienced a slight decrease (to US$193,414 million), while net fixed assets also decreased (to US$153,114 million). These offsetting movements resulted in a minimal change in the ratio.
- 2024 to 2025
- A significant decrease in the net fixed asset turnover ratio is observed, falling to 0.82 in 2025. This decline is associated with a further decrease in sales and other operating revenues (to US$184,432 million) and a substantial increase in net fixed assets (to US$225,783 million). The considerable growth in fixed assets, without a corresponding increase in sales, is the primary driver of this reduction, suggesting a potential over-investment in fixed assets relative to revenue generation.
In summary, the net fixed asset turnover ratio experienced a period of improvement followed by a notable decline. The latter portion of the period is characterized by increasing capital intensity, as evidenced by the growing asset base relative to revenue.
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Total Asset Turnover
Chevron Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | 184,432) | 193,414) | 196,913) | 235,717) | 155,606) | |
| Total assets | 324,012) | 256,938) | 261,632) | 257,709) | 239,535) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.57 | 0.75 | 0.75 | 0.91 | 0.65 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| ConocoPhillips | 0.48 | 0.45 | 0.59 | 0.84 | 0.51 | |
| Exxon Mobil Corp. | 0.72 | 0.75 | 0.89 | 1.08 | 0.82 | |
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.63 | 0.71 | 0.80 | 0.99 | 0.71 | |
| Total Asset Turnover, Industry | ||||||
| Energy | 0.63 | 0.71 | 0.79 | 0.97 | 0.71 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Total asset turnover = Sales and other operating revenues ÷ Total assets
= 184,432 ÷ 324,012 = 0.57
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited fluctuating performance over the five-year period. Initially, the ratio increased significantly before stabilizing and then declining.
- Total Asset Turnover Trend
- The total asset turnover ratio began at 0.65 in 2021. A substantial increase was observed in 2022, reaching 0.91. This indicates improved efficiency in utilizing assets to generate sales. The ratio then decreased to 0.75 in 2023 and remained constant in 2024. A further decline to 0.57 was recorded in 2025, representing the lowest value within the observed period.
The increase from 2021 to 2022 suggests a more effective deployment of assets to drive revenue. However, the subsequent stabilization and eventual decrease indicate a diminishing ability to generate sales relative to the asset base. The decline in 2025 warrants further investigation to determine the underlying causes, which could include factors such as increased asset investment without a corresponding increase in sales, or a decrease in sales volume.
- Sales and Asset Relationship
- Sales and other operating revenues increased considerably from 2021 to 2022, coinciding with the rise in the total asset turnover ratio. While sales decreased in subsequent years, total assets continued to increase through 2025. This divergence between asset growth and sales performance likely contributed to the observed decline in the total asset turnover ratio in the later years.
The observed trend suggests a potential weakening in the relationship between asset investment and sales generation. Continued monitoring of this ratio, alongside its underlying components, is recommended to assess the long-term implications for operational efficiency and profitability.
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Equity Turnover
Chevron Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | 184,432) | 193,414) | 196,913) | 235,717) | 155,606) | |
| Total Chevron Corporation stockholders’ equity | 186,450) | 152,318) | 160,957) | 159,282) | 139,067) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.99 | 1.27 | 1.22 | 1.48 | 1.12 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| ConocoPhillips | 0.91 | 0.84 | 1.14 | 1.64 | 1.01 | |
| Exxon Mobil Corp. | 1.25 | 1.29 | 1.63 | 2.04 | 1.64 | |
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.11 | 1.22 | 1.42 | 1.77 | 1.35 | |
| Equity Turnover, Industry | ||||||
| Energy | 1.12 | 1.24 | 1.43 | 1.76 | 1.36 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Equity turnover = Sales and other operating revenues ÷ Total Chevron Corporation stockholders’ equity
= 184,432 ÷ 186,450 = 0.99
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates fluctuations, indicating a changing relationship between sales and stockholders’ equity. Initially, the ratio increased before exhibiting a declining trend.
- Overall Trend
- The equity turnover ratio began at 1.12 in 2021, increased to a peak of 1.48 in 2022, then decreased to 1.22 in 2023, slightly increased to 1.27 in 2024, and concluded at 0.99 in 2025. This suggests an initial improvement in the efficiency of equity utilization, followed by a weakening in that efficiency.
- 2021-2022
- A substantial increase in the equity turnover ratio occurred between 2021 and 2022. This rise coincided with a significant increase in sales and other operating revenues, while stockholders’ equity also increased, but at a slower pace. This indicates that the company generated more sales relative to the equity invested during this period.
- 2022-2025
- From 2022 through 2025, the equity turnover ratio generally trended downward. While sales decreased over this period, stockholders’ equity experienced more volatility, increasing in 2025. The decrease in the ratio suggests that the company became less efficient in generating sales from its equity base. The most pronounced decrease occurred between 2024 and 2025, potentially indicating a shift in operational efficiency or capital structure.
- Recent Performance (2024-2025)
- The ratio’s decline to 0.99 in 2025 is notable. This value represents the lowest point in the analyzed period and suggests that for every dollar of equity, less than one dollar of sales was generated. This could be due to a variety of factors, including decreased sales volume, increased equity levels, or a combination of both.
In summary, the equity turnover ratio indicates a period of improving efficiency followed by a decline. The recent downward trend warrants further investigation to determine the underlying causes and potential implications for future performance.
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