Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The investment activity ratios demonstrate varying trends over the observed period. Generally, the ratios exhibited increases through the first three quarters of 2022, followed by a period of relative stability and then a noticeable decline beginning in the latter half of 2023 and continuing into the forecast period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased from 1.22 in March 2022 to a peak of 1.64 in December 2022. This suggests improving efficiency in utilizing fixed assets to generate revenue during that timeframe. However, the ratio then decreased steadily, reaching 0.84 by December 2025. This decline indicates a diminishing ability to generate sales from existing fixed assets, potentially due to factors such as overcapacity, decreased demand, or a shift in production methods. The most significant drop occurs between September 2025 and December 2025.
- Total Asset Turnover
- Similar to the net fixed asset turnover, the total asset turnover ratio showed improvement through December 2022, rising from 0.71 to 0.91. This indicates enhanced efficiency in utilizing all assets to generate sales. A subsequent decline is observed, with the ratio falling to 0.57 by December 2025. This suggests a decreasing ability to generate revenue from the company’s total asset base, mirroring the trend observed in the net fixed asset turnover. The rate of decline appears to accelerate in the latter half of the forecast period.
- Equity Turnover
- The equity turnover ratio followed a comparable pattern, increasing from 1.21 in March 2022 to 1.48 in December 2022, indicating improved efficiency in generating sales from shareholder equity. The ratio then experienced a gradual decrease, reaching 0.98 and 0.99 in the final two quarters of the observed period. This suggests a reduced ability to generate sales relative to the equity invested in the business. The decline, while present, is less pronounced than that observed in the other two ratios.
The consistent downward trend in all three ratios from late 2023 through the forecast period warrants further investigation. Potential contributing factors could include macroeconomic conditions, industry-specific challenges, or internal strategic shifts. The accelerating decline in the latter part of the period suggests that these factors may be intensifying.
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Net Fixed Asset Turnover
Chevron Corp., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Sales and other operating revenues | 45,787) | 48,169) | 44,375) | 46,101) | 48,334) | 48,926) | 49,574) | 46,580) | 48,933) | 51,922) | 47,216) | 48,842) | 54,523) | 63,508) | 65,372) | 52,314) | |||||
| Properties, plant and equipment, net | 219,729) | 219,494) | 147,442) | 148,124) | 147,799) | 147,891) | 153,003) | 153,641) | 153,619) | 153,972) | 142,768) | 142,951) | 143,591) | 144,144) | 144,410) | 144,444) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Net fixed asset turnover1 | 0.84 | 0.85 | 1.27 | 1.30 | 1.31 | 1.31 | 1.29 | 1.27 | 1.28 | 1.32 | 1.50 | 1.62 | 1.64 | 1.58 | 1.43 | 1.22 | |||||
| Benchmarks | |||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||
| ConocoPhillips | 0.63 | 0.64 | 0.61 | 0.61 | 0.58 | 0.78 | 0.80 | 0.79 | 0.80 | 0.91 | 1.02 | 1.16 | 1.21 | 1.18 | 1.02 | 0.83 | |||||
| Exxon Mobil Corp. | 1.08 | 1.09 | 1.12 | 1.16 | 1.15 | 1.13 | 1.14 | 1.55 | 1.56 | 1.68 | 1.76 | 1.92 | 1.95 | 1.90 | 1.68 | 1.44 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Net fixed asset turnover
= (Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025
+ Sales and other operating revenuesQ2 2025
+ Sales and other operating revenuesQ1 2025)
÷ Properties, plant and equipment, net
= (45,787 + 48,169 + 44,375 + 46,101)
÷ 219,729 = 0.84
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits considerable fluctuation over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio demonstrates an upward trajectory, peaking in December 2022, before entering a period of decline and stabilization, followed by a more pronounced decrease towards the end of the period.
- Initial Increase (March 31, 2022 – December 31, 2022)
- The net fixed asset turnover ratio increased from 1.22 in March 2022 to 1.64 in December 2022. This indicates a growing efficiency in generating sales revenue from the company’s fixed assets during this timeframe. The increase suggests improved asset utilization or a rise in sales relative to the investment in fixed assets.
- Stabilization and Decline (March 31, 2023 – September 30, 2023)
- Following the peak, the ratio experienced a decline, moving from 1.62 in March 2023 to 1.32 in September 2023. While there were minor fluctuations, the ratio generally stabilized between 1.27 and 1.31 from December 2023 through September 2024. This suggests a leveling off of sales generation relative to fixed assets after the initial period of growth.
- Significant Decrease (December 31, 2024 – December 31, 2025)
- A notable decrease in the net fixed asset turnover ratio is observed in the final period. The ratio fell from 1.31 in December 2024 to 0.85 in September 2025 and remained at 0.84 in December 2025. This substantial decline indicates a significant reduction in the efficiency of asset utilization. This could be attributed to a decrease in sales, an increase in fixed assets (as evidenced by the rise in net properties, plant, and equipment), or a combination of both.
The concurrent increase in properties, plant, and equipment, net, particularly evident from September 2023 onwards, appears to contribute to the declining turnover ratio. While sales remained relatively stable, the substantial investment in fixed assets resulted in a lower ratio, signifying that each dollar invested in fixed assets generated less revenue during the latter part of the analyzed period.
Overall, the trend suggests a shift from efficient asset utilization to a period where asset investment outpaced revenue generation. Further investigation into the reasons behind the increased capital expenditure and the potential factors affecting sales would be necessary to fully understand this shift.
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Total Asset Turnover
Chevron Corp., total asset turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Sales and other operating revenues | 45,787) | 48,169) | 44,375) | 46,101) | 48,334) | 48,926) | 49,574) | 46,580) | 48,933) | 51,922) | 47,216) | 48,842) | 54,523) | 63,508) | 65,372) | 52,314) | |||||
| Total assets | 324,012) | 326,501) | 250,820) | 256,397) | 256,938) | 259,232) | 260,644) | 261,651) | 261,632) | 263,927) | 251,779) | 255,886) | 257,709) | 259,735) | 257,936) | 249,048) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Total asset turnover1 | 0.57 | 0.57 | 0.75 | 0.75 | 0.75 | 0.75 | 0.76 | 0.74 | 0.75 | 0.77 | 0.85 | 0.91 | 0.91 | 0.87 | 0.80 | 0.71 | |||||
| Benchmarks | |||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||
| ConocoPhillips | 0.48 | 0.49 | 0.47 | 0.46 | 0.45 | 0.57 | 0.59 | 0.58 | 0.59 | 0.64 | 0.74 | 0.83 | 0.84 | 0.79 | 0.70 | 0.58 | |||||
| Exxon Mobil Corp. | 0.72 | 0.72 | 0.74 | 0.75 | 0.75 | 0.74 | 0.74 | 0.88 | 0.89 | 0.93 | 1.00 | 1.07 | 1.08 | 1.05 | 0.96 | 0.86 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Total asset turnover
= (Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025
+ Sales and other operating revenuesQ2 2025
+ Sales and other operating revenuesQ1 2025)
÷ Total assets
= (45,787 + 48,169 + 44,375 + 46,101)
÷ 324,012 = 0.57
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits fluctuations over the observed period, generally indicating a decreasing trend in the efficiency with which assets are used to generate sales. Initial values demonstrate an increase followed by a decline and stabilization, then a more pronounced decrease towards the end of the period.
- Initial Increase (Mar 31, 2022 – Dec 31, 2022)
- The ratio began at 0.71 and increased consistently through the end of 2022, peaking at 0.91. This suggests improving efficiency in asset utilization during this timeframe, with a greater proportion of sales being generated from each dollar of assets. The increase could be attributed to increased sales volume or more efficient asset management practices.
- Stabilization and Slight Decline (Mar 31, 2023 – Dec 31, 2023)
- Following the peak, the ratio stabilized, fluctuating between 0.75 and 0.91. While some variation exists, the ratio remained relatively consistent, indicating a plateau in asset utilization efficiency. A slight downward trend is observable during this period.
- Significant Decrease (Mar 31, 2025 – Dec 31, 2025)
- A notable decrease in the total asset turnover ratio is observed in the final two quarters. The ratio declined to 0.57 and remained at that level, representing a substantial drop from previous values. This suggests a significant reduction in the efficiency of asset utilization, potentially due to an increase in total assets without a corresponding increase in sales, or a decrease in sales revenue. The substantial increase in total assets during this period appears to be the primary driver of this decline.
- Sales and Asset Relationship
- While sales experienced fluctuations, they generally decreased from 65,372 to 45,787 over the period. Total assets, however, increased significantly from 249,048 to 324,012. This divergence between relatively stable to declining sales and increasing assets is a key factor contributing to the observed decrease in the total asset turnover ratio.
In summary, the company initially demonstrated improving asset utilization efficiency, followed by a period of stabilization, and ultimately experienced a significant decline in efficiency as asset growth outpaced sales revenue. Further investigation into the drivers of asset growth and sales performance is warranted.
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Equity Turnover
Chevron Corp., equity turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Sales and other operating revenues | 45,787) | 48,169) | 44,375) | 46,101) | 48,334) | 48,926) | 49,574) | 46,580) | 48,933) | 51,922) | 47,216) | 48,842) | 54,523) | 63,508) | 65,372) | 52,314) | |||||
| Total Chevron Corporation stockholders’ equity | 186,450) | 189,843) | 146,417) | 149,244) | 152,318) | 156,202) | 159,233) | 160,625) | 160,957) | 165,265) | 158,325) | 159,449) | 159,282) | 158,680) | 153,554) | 146,219) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Equity turnover1 | 0.99 | 0.98 | 1.28 | 1.29 | 1.27 | 1.24 | 1.24 | 1.21 | 1.22 | 1.23 | 1.35 | 1.46 | 1.48 | 1.43 | 1.34 | 1.21 | |||||
| Benchmarks | |||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||
| ConocoPhillips | 0.91 | 0.92 | 0.88 | 0.88 | 0.84 | 1.11 | 1.13 | 1.12 | 1.14 | 1.26 | 1.40 | 1.58 | 1.64 | 1.53 | 1.30 | 1.09 | |||||
| Exxon Mobil Corp. | 1.25 | 1.25 | 1.25 | 1.29 | 1.29 | 1.27 | 1.27 | 1.61 | 1.63 | 1.73 | 1.83 | 1.99 | 2.04 | 2.08 | 1.99 | 1.81 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Equity turnover
= (Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025
+ Sales and other operating revenuesQ2 2025
+ Sales and other operating revenuesQ1 2025)
÷ Total Chevron Corporation stockholders’ equity
= (45,787 + 48,169 + 44,375 + 46,101)
÷ 186,450 = 0.99
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates fluctuations, generally trending downwards over the observed timeframe. Initial values indicate increasing efficiency in utilizing equity to generate sales, followed by a period of stabilization and then a decline. A closer examination reveals specific patterns and potential areas of interest.
- Overall Trend
- The equity turnover ratio began at 1.21 in the first quarter of 2022 and generally increased through the end of 2022, peaking at 1.48. From the beginning of 2023, the ratio experienced a gradual decline, reaching 0.98 and 0.99 in the final two quarters of 2025. This suggests a decreasing ability to generate sales from each dollar of equity invested.
- Initial Increase (Q1 2022 – Q4 2022)
- The period from March 31, 2022, to December 31, 2022, saw a consistent increase in the equity turnover ratio. This indicates improved efficiency in converting equity financing into sales revenue. The largest increase occurred between the first and second quarters of 2022, moving from 1.21 to 1.34. The ratio continued to climb, albeit at a slower pace, reaching its highest point at 1.48 in the fourth quarter of 2022.
- Stabilization and Decline (Q1 2023 – Q4 2025)
- Following the peak in late 2022, the equity turnover ratio stabilized in the first half of 2023, fluctuating between 1.46 and 1.35. A more pronounced downward trend began in the second half of 2023 and continued through the end of 2025. The ratio decreased from 1.23 in September 2023 to 0.98 in September 2025, and remained at 0.99 in December 2025. This decline suggests either decreasing sales relative to equity, or an increase in equity without a corresponding increase in sales.
- Recent Performance (2024-2025)
- The most recent data points reveal a consistently low equity turnover ratio. The ratio remained relatively stable between 1.21 and 1.29 throughout 2024. However, the final quarters of the analyzed period show a significant drop, indicating a substantial decrease in sales generation per dollar of equity. This warrants further investigation to determine the underlying causes, such as changes in operational efficiency, asset utilization, or equity structure.
In summary, the equity turnover ratio initially demonstrated positive momentum but has experienced a notable decline in recent periods. This trend suggests a potential weakening in the relationship between equity investment and sales generation, and may warrant further investigation into the factors driving this change.
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