Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Chevron Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 analysis of profitability ratios reveals a cyclical pattern characterized by a significant expansion period peaking in early 2023, followed by a sustained contraction through the first quarter of 2026, and a subsequent recovery in the second quarter of 2026.
- Profit Margins
- Operating profit margin exhibited a consistent upward trajectory from 16.73% in March 2022 to a peak of 21.92% in March 2023. Following this peak, a gradual decline was observed over the next three years, reaching a low of 10.62% in March 2026, before rebounding to 15.51% in June 2026. Net profit margins mirrored this trend, rising from 11.60% in March 2022 to a maximum of 15.41% in March 2023, then descending to a minimum of 5.92% in March 2026, and recovering to 9.87% by June 2026.
- Returns on Capital and Assets
- Return on Equity (ROE) and Return on Assets (ROA) demonstrated high correlation with the margin trends. ROE climbed from 14.02% in March 2022 to a peak of 22.44% in March 2023, before undergoing a steady decline to 5.99% in March 2026, and ending at 10.84% in June 2026. ROA followed a similar arc, increasing from 8.23% to a high of 13.98% in March 2023, then falling to 3.34% in March 2026, before increasing to 6.24% in June 2026.
The synchronized movement across all analyzed metrics suggests that the company's profitability is highly sensitive to systemic factors. The prolonged decline from 2023 to 2026 indicates a period of compressed margins and reduced asset efficiency, while the sharp reversal in the final quarter suggests a correction or a positive shift in the operating environment.
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Return on Sales
Return on Investment
Operating Profit Margin
Chevron Corp., operating profit margin calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | 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) | ||||||||||||||||||||||||
| Operating income | 17,132) | 4,273) | 5,109) | 5,854) | 4,504) | 5,806) | 6,308) | 6,702) | 7,197) | 8,088) | 3,654) | 8,943) | 7,996) | 9,672) | 9,967) | 15,145) | 16,119) | 9,254) | ||||||
| Sales and other operating revenues | 67,199) | 47,556) | 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | 15.51% | 10.62% | 11.53% | 12.02% | 12.42% | 13.48% | 14.63% | 13.22% | 14.15% | 14.73% | 15.37% | 18.06% | 19.98% | 21.92% | 21.42% | 21.03% | 19.86% | 16.73% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| ConocoPhillips | 24.30% | 21.31% | 22.97% | 24.14% | 25.41% | 26.65% | 26.64% | 28.67% | 29.76% | 29.79% | 30.57% | 30.06% | 31.80% | 33.89% | 36.80% | 37.27% | 37.07% | 36.63% | ||||||
| Exxon Mobil Corp. | 12.86% | 11.56% | 13.05% | 13.58% | 14.05% | 14.50% | 14.74% | 14.99% | 15.19% | 15.03% | 16.24% | 17.15% | 19.54% | 21.37% | 19.07% | 18.60% | 15.93% | 12.25% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q2 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2026
+ Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025)
÷ (Sales and other operating revenuesQ2 2026
+ Sales and other operating revenuesQ1 2026
+ Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025)
= 100 × (17,132 + 4,273 + 5,109 + 5,854)
÷ (67,199 + 47,556 + 45,787 + 48,169)
= 15.51%
2 Click competitor name to see calculations.
The operating profit margin demonstrates a cyclical trajectory characterized by a period of initial expansion, a prolonged phase of contraction, and a subsequent sharp recovery in the final recorded period.
- Margin Expansion and Peak Performance
- An upward trend in profitability is observed from March 2022 through March 2023. The operating profit margin increased from 16.73% to a peak of 21.92%. This growth coincided with significant peaks in sales and other operating revenues, which reached a high of 65,372 million US dollars in June 2022, and operating income, which peaked at 16,119 million US dollars during the same month.
- Sustained Margin Compression
- Following the peak in March 2023, a consistent downward trend in the operating profit margin is evident, lasting until March 2026. During this interval, the margin declined from 21.92% to a low of 10.62%. This compression occurred despite revenues remaining relatively stable between 44,000 and 49,000 million US dollars throughout 2024 and 2025. The decline is primarily driven by a steady reduction in operating income, which fell from 9,672 million US dollars in March 2023 to 4,273 million US dollars by March 2026.
- Revenue and Income Volatility
- A significant anomaly is observed in June 2026, where both sales and operating income experienced a sharp increase. Revenues rose to 67,199 million US dollars and operating income surged to 17,132 million US dollars. This sudden increase resulted in a recovery of the operating profit margin to 15.51%, breaking the multi-year downward trend.
- Correlation Between Volume and Efficiency
- The data indicates that while high revenue levels typically correlated with higher margins in 2022, the period between 2023 and 2026 showed a decoupling of revenue and efficiency. The steady decline in margins during a period of relatively flat revenue suggests an increase in operating costs or a reduction in the pricing power of the core offerings prior to the recovery in June 2026.
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Net Profit Margin
Chevron Corp., net profit margin calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | 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) | ||||||||||||||||||||||||
| Net income attributable to Chevron Corporation | 12,072) | 2,210) | 2,770) | 3,539) | 2,490) | 3,500) | 3,239) | 4,487) | 4,434) | 5,501) | 2,259) | 6,526) | 6,010) | 6,574) | 6,353) | 11,231) | 11,622) | 6,259) | ||||||
| Sales and other operating revenues | 67,199) | 47,556) | 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | 9.87% | 5.92% | 6.67% | 6.83% | 7.31% | 8.12% | 9.13% | 8.60% | 9.50% | 10.43% | 10.85% | 12.57% | 14.09% | 15.41% | 15.05% | 15.05% | 14.09% | 11.60% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| ConocoPhillips | 14.65% | 12.58% | 13.55% | 14.81% | 15.89% | 16.62% | 16.89% | 18.01% | 18.93% | 19.19% | 19.52% | 18.67% | 19.37% | 20.97% | 23.80% | 24.06% | 24.34% | 23.91% | ||||||
| Exxon Mobil Corp. | 9.07% | 7.76% | 8.91% | 9.22% | 9.42% | 9.76% | 9.93% | 9.92% | 10.03% | 9.90% | 10.76% | 11.01% | 13.38% | 14.87% | 13.23% | 13.41% | 11.06% | 8.40% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q2 2026 Calculation
Net profit margin = 100
× (Net income attributable to Chevron CorporationQ2 2026
+ Net income attributable to Chevron CorporationQ1 2026
+ Net income attributable to Chevron CorporationQ4 2025
+ Net income attributable to Chevron CorporationQ3 2025)
÷ (Sales and other operating revenuesQ2 2026
+ Sales and other operating revenuesQ1 2026
+ Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025)
= 100 × (12,072 + 2,210 + 2,770 + 3,539)
÷ (67,199 + 47,556 + 45,787 + 48,169)
= 9.87%
2 Click competitor name to see calculations.
The net profit margin exhibited a cyclical trajectory characterized by an initial period of expansion, a prolonged multi-year contraction, and a sharp recovery in the final reported quarter. Profitability peaked in early 2023 before entering a sustained downward trend that lasted until early 2026.
- Margin Expansion and Peak Performance
- Between March 2022 and March 2023, the net profit margin demonstrated consistent growth, rising from 11.60% to a peak of 15.41%. This period of expansion was supported by significant surges in sales and other operating revenues, which reached their highest levels during the middle of 2022, peaking at 65,372 million USD in June 2022.
- Prolonged Profitability Contraction
- From April 2023 through March 2026, a steady erosion of the net profit margin is observed. The margin declined from 15.41% in March 2023 to a low of 5.92% by March 2026. This downward trend persisted despite revenues remaining relatively stable, fluctuating primarily between 44,000 million USD and 52,000 million USD during the 2023 to 2025 period. The compression suggests an increase in operating costs or a reduction in the realized price of products relative to the costs of production.
- Recent Recovery and Volatility
- A significant reversal in the profitability trend occurred in the second quarter of 2026. The net profit margin increased to 9.87%, driven by a substantial spike in both revenue and net income. During this quarter, sales reached 67,199 million USD and net income attributable to the corporation climbed to 12,072 million USD, marking the highest net income level since mid-2022.
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Return on Equity (ROE)
Chevron Corp., ROE calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | 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) | ||||||||||||||||||||||||
| Net income attributable to Chevron Corporation | 12,072) | 2,210) | 2,770) | 3,539) | 2,490) | 3,500) | 3,239) | 4,487) | 4,434) | 5,501) | 2,259) | 6,526) | 6,010) | 6,574) | 6,353) | 11,231) | 11,622) | 6,259) | ||||||
| Total Chevron Corporation stockholders’ equity | 189,883) | 183,715) | 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | 10.84% | 5.99% | 6.60% | 6.73% | 9.37% | 10.49% | 11.59% | 10.68% | 11.76% | 12.64% | 13.28% | 15.41% | 19.05% | 22.44% | 22.27% | 21.53% | 18.92% | 14.02% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| ConocoPhillips | 14.20% | 11.34% | 12.39% | 13.63% | 14.01% | 14.63% | 14.27% | 19.94% | 21.48% | 21.47% | 22.23% | 23.46% | 27.20% | 33.15% | 38.91% | 36.79% | 31.69% | 26.12% | ||||||
| Exxon Mobil Corp. | 12.63% | 9.95% | 11.12% | 11.50% | 11.81% | 12.63% | 12.77% | 12.55% | 12.73% | 15.98% | 17.58% | 19.09% | 24.48% | 29.54% | 27.04% | 27.87% | 21.97% | 15.24% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q2 2026 Calculation
ROE = 100
× (Net income attributable to Chevron CorporationQ2 2026
+ Net income attributable to Chevron CorporationQ1 2026
+ Net income attributable to Chevron CorporationQ4 2025
+ Net income attributable to Chevron CorporationQ3 2025)
÷ Total Chevron Corporation stockholders’ equity
= 100 × (12,072 + 2,210 + 2,770 + 3,539)
÷ 189,883 = 10.84%
2 Click competitor name to see calculations.
The analysis of the company's profitability indicates a period of significant volatility in Return on Equity (ROE) between March 2022 and June 2026. Following a peak in the first quarter of 2023, a prolonged contraction in ROE was observed, reaching its lowest point in early 2026 before a sharp rebound occurred in the second quarter of that year.
- ROE Growth and Peak Performance
- Return on Equity exhibited an initial upward trajectory, rising from 14.02% in March 2022 to a peak of 22.44% in March 2023. This expansion was primarily driven by a surge in quarterly net income, which reached its period high of 11.622 billion USD in June 2022.
- Sustained Profitability Decline
- A consistent downward trend is evident from March 2023 through March 2026, with the ROE ratio declining to 5.99%. This erosion reflects a general reduction in net income, which fell from 6.574 billion USD in March 2023 to 2.210 billion USD by March 2026.
- Impact of Equity Expansion
- Stockholders' equity remained relatively stable between 146 billion and 165 billion USD from March 2022 through June 2025. However, a substantial increase in equity to approximately 189 billion USD occurred starting in September 2025. This increase in the equity base acted as a denominator effect, further compressing the ROE ratio during the latter part of 2025 and early 2026.
- Quarterly Recovery
- A sharp reversal in the downward trend is observed in June 2026, where ROE increased to 10.84%. This recovery is directly attributable to a significant spike in net income, which surged to 12.072 billion USD for the quarter, the highest value in the analyzed period.
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Return on Assets (ROA)
Chevron Corp., ROA calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | 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) | ||||||||||||||||||||||||
| Net income attributable to Chevron Corporation | 12,072) | 2,210) | 2,770) | 3,539) | 2,490) | 3,500) | 3,239) | 4,487) | 4,434) | 5,501) | 2,259) | 6,526) | 6,010) | 6,574) | 6,353) | 11,231) | 11,622) | 6,259) | ||||||
| Total assets | 330,135) | 329,551) | 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | 6.24% | 3.34% | 3.80% | 3.91% | 5.47% | 6.11% | 6.87% | 6.43% | 7.18% | 7.76% | 8.17% | 9.65% | 11.98% | 13.98% | 13.76% | 13.15% | 11.26% | 8.23% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| ConocoPhillips | 7.47% | 5.97% | 6.55% | 7.23% | 7.49% | 7.68% | 7.53% | 10.29% | 11.13% | 11.10% | 11.42% | 11.96% | 14.43% | 17.32% | 19.91% | 19.04% | 16.98% | 13.78% | ||||||
| Exxon Mobil Corp. | 7.05% | 5.45% | 6.42% | 6.59% | 6.93% | 7.34% | 7.43% | 7.30% | 7.41% | 8.68% | 9.57% | 10.24% | 13.41% | 15.89% | 14.29% | 14.01% | 10.59% | 7.27% | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q2 2026 Calculation
ROA = 100
× (Net income attributable to Chevron CorporationQ2 2026
+ Net income attributable to Chevron CorporationQ1 2026
+ Net income attributable to Chevron CorporationQ4 2025
+ Net income attributable to Chevron CorporationQ3 2025)
÷ Total assets
= 100 × (12,072 + 2,210 + 2,770 + 3,539)
÷ 330,135 = 6.24%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibits a cyclical trajectory characterized by an initial phase of expansion, a prolonged period of contraction, and a subsequent sharp recovery. The overall trend reflects the interplay between volatile net income and a significant expansion of the asset base in the latter half of the period.
- Initial Growth and Peak Efficiency
- From March 31, 2022, to March 31, 2023, ROA followed a consistent upward trend, increasing from 8.23% to a peak of 13.98%. This growth was primarily driven by a substantial surge in net income, which peaked at $11,622 million in June 2022, while the total asset base remained relatively stable, fluctuating minimally between $249 billion and $260 billion.
- Sustained Profitability Decline
- A downward trend in ROA is observed beginning in June 30, 2023, where the ratio fell from 11.98% to a trough of 3.34% by March 31, 2026. This decline was largely attributable to a steady compression of net income, which fell below $3 billion in multiple quarters between December 2023 and March 2026.
- Asset Base Expansion and Dilution
- A significant shift in the capital structure occurred between June 30, 2025, and September 30, 2025, as total assets increased from $250.8 billion to $326.5 billion. This rapid expansion of the asset base coincided with lower net income levels, which accelerated the decline of the ROA, contributing to the lowest efficiency levels recorded in the final three quarters of 2025 and the first quarter of 2026.
- Recent Recovery
- The period concludes with a marked recovery in June 30, 2026, with ROA rising to 6.24%. This rebound was triggered by a sharp increase in net income to $12,072 million, which provided sufficient earnings growth to partially offset the impact of the enlarged asset base of $330.1 billion.
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