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: 2026-03-31), 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).
Profitability metrics exhibit a distinct cyclical trend, characterized by a period of expansion peaking in the first quarter of 2023, followed by a sustained and consistent decline through the first quarter of 2026. The high degree of correlation across all four ratios suggests that the fluctuations were driven by systemic factors affecting both operational efficiency and capital returns.
- Operating and Net Profit Margins
- The operating profit margin rose from 16.73% in March 2022 to a peak of 21.92% in March 2023. Following this peak, a long-term downward trajectory is observed, with the margin compressing to 10.62% by March 2026, notwithstanding a brief period of stabilization in late 2024. Net profit margins followed a nearly identical pattern, peaking at 15.41% in March 2023 before declining steadily to 5.92% by the end of the period, indicating a significant contraction in the percentage of revenue converted into final profit.
- Return on Equity (ROE)
- Return on Equity showed a sharp increase during 2022, reaching a maximum of 22.44% in March 2023. Subsequent quarters show a persistent erosion of this ratio, which fell to 5.99% by March 2026. This decline indicates a marked reduction in the efficiency of generating profits from shareholders' equity over the analyzed timeframe.
- Return on Assets (ROA)
- Return on Assets mirrored the trends seen in margin and equity returns, peaking at 13.98% in March 2023. A consistent decline followed, bringing the ROA to 3.34% by March 2026. The simultaneous decline in both ROA and ROE suggests that the overall drop in profitability was rooted in a decrease in the earnings generated by the asset base rather than changes in financial leverage alone.
AI Ask an analyst for more
Return on Sales
Return on Investment
Operating Profit Margin
Chevron Corp., operating profit margin calculation (quarterly data)
| 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 | 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 | 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 | 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 | 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. | 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: 2026-03-31), 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 Q1 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025)
÷ (Sales and other operating revenuesQ1 2026
+ Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025
+ Sales and other operating revenuesQ2 2025)
= 100 × (4,273 + 5,109 + 5,854 + 4,504)
÷ (47,556 + 45,787 + 48,169 + 44,375)
= 10.62%
2 Click competitor name to see calculations.
An analysis of the operating profit margin reveals a cyclical trajectory characterized by a significant expansion phase in 2022, followed by a sustained and gradual contraction through early 2026. The operating profit margin peaked in the first quarter of 2023 before entering a long-term downward trend.
- Expansion and Peak Performance
- Between March 31, 2022, and March 31, 2023, the operating profit margin exhibited a strong upward trend, rising from 16.73% to a peak of 21.92%. This growth was supported by a substantial increase in both operating income and sales, with revenues reaching a maximum of 65,372 million US$ in June 2022.
- Volatility and Initial Contraction
- A period of volatility occurred throughout 2023, where the margin declined from its peak to 15.37% by December 31, 2023. This contraction was marked by a sharp decrease in operating income, which fell to 3,654 million US$ in the final quarter of 2023, despite relatively stable revenue levels.
- Sustained Margin Erosion
- From 2024 through March 31, 2026, a consistent downward trend is observed in profitability. While there was a brief marginal recovery to 14.63% in December 2024, the operating profit margin subsequently declined in every following quarter. By March 31, 2026, the margin reached its lowest point in the analyzed period at 10.62%.
- Revenue and Income Correlation
- The decline in the operating profit margin correlates with a general reduction in sales and other operating revenues, which decreased from peak levels above 65,000 million US$ to a range between 44,000 and 49,000 million US$. The inability of operating income to recover to 2022 levels, despite fluctuating revenues, indicates a compression of operating efficiency over the long term.
AI Ask an analyst for more
Net Profit Margin
Chevron Corp., net profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to Chevron Corporation | 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 | 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 | 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 | 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. | 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: 2026-03-31), 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 Q1 2026 Calculation
Net profit margin = 100
× (Net income attributable to Chevron CorporationQ1 2026
+ Net income attributable to Chevron CorporationQ4 2025
+ Net income attributable to Chevron CorporationQ3 2025
+ Net income attributable to Chevron CorporationQ2 2025)
÷ (Sales and other operating revenuesQ1 2026
+ Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025
+ Sales and other operating revenuesQ2 2025)
= 100 × (2,210 + 2,770 + 3,539 + 2,490)
÷ (47,556 + 45,787 + 48,169 + 44,375)
= 5.92%
2 Click competitor name to see calculations.
An analysis of the net profit margin reveals a cyclical trajectory characterized by an initial period of expansion followed by a sustained, long-term contraction. The profitability peak occurred in the first quarter of 2023, after which a consistent downward trend was established, resulting in a significant reduction in the percentage of revenue converted to net income by the first quarter of 2026.
- Net Profit Margin Progression
- The net profit margin experienced a steady climb from 11.60% in March 2022 to a peak of 15.41% in March 2023. Following this apex, a persistent decline began, with the margin dropping below the 10% threshold by June 2024. This contraction continued throughout 2025, eventually reaching a period low of 5.92% by March 2026, representing a total decline of 9.49 percentage points from the maximum observed value.
- Revenue and Net Income Correlation
- Revenues reached a maximum of 65,372 million USD in June 2022, which supported a rapid increase in profitability. However, from 2024 through 2026, revenues stabilized within a narrower range between 44,375 million USD and 49,574 million USD. During this period of relative revenue stability, net income continued to diminish, falling from 5,501 million USD in March 2024 to 2,210 million USD in March 2026. This divergence indicates that the margin compression was driven more by the erosion of net income than by a collapse in top-line revenue.
- Profitability Volatility and Trends
- The data indicates a transition from high-margin operations in 2022 and early 2023 to a lower-margin environment. While a brief marginal recovery was observed in December 2024, where the margin rose slightly to 9.13% from 8.60% in the previous quarter, this was an isolated fluctuation that did not alter the overarching downward trajectory. The consistency of the decline from June 2024 through March 2026 suggests a systemic compression of profitability.
AI Ask an analyst for more
Return on Equity (ROE)
Chevron Corp., ROE calculation (quarterly data)
| 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 | 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 | 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 | 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 | 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. | 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: 2026-03-31), 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 Q1 2026 Calculation
ROE = 100
× (Net income attributable to Chevron CorporationQ1 2026
+ Net income attributable to Chevron CorporationQ4 2025
+ Net income attributable to Chevron CorporationQ3 2025
+ Net income attributable to Chevron CorporationQ2 2025)
÷ Total Chevron Corporation stockholders’ equity
= 100 × (2,210 + 2,770 + 3,539 + 2,490)
÷ 183,715 = 5.99%
2 Click competitor name to see calculations.
The financial performance over the analyzed period is characterized by an initial surge in profitability followed by a sustained contraction in the efficiency of equity utilization.
- Net Income Trajectory
- A period of exceptional profitability is observed in mid-2022, with net income peaking at 11.622 billion US$ in June 2022. Following this peak, a long-term downward trend emerged. Net income declined steadily through 2023 and 2024, eventually reaching a low of 2.210 billion US$ by March 2026.
- Equity Base Fluctuations
- Stockholders' equity remained relatively stable, fluctuating between 146 billion and 165 billion US$ from March 2022 through June 2025. A significant structural shift occurred in September 2025, when equity increased sharply to 189.843 billion US$ and remained at an elevated level through March 2026.
- Return on Equity (ROE) Dynamics
- The ROE exhibited a strong upward trend in the early stages of the period, rising from 14.02% in March 2022 to a peak of 22.44% in March 2023. This expansion was primarily driven by the substantial increase in net income relative to the equity base.
- Profitability Compression
- From April 2023 onward, a consistent decline in ROE is evident. The ratio dropped to 11.59% by December 2024 and continued to erode throughout 2025. The decline accelerated in the final quarters, reaching 5.99% by March 2026. This compression resulted from the simultaneous occurrence of diminishing net income and a significant expansion of the equity denominator, which diluted the overall return on shareholders' capital.
AI Ask an analyst for more
Return on Assets (ROA)
Chevron Corp., ROA calculation (quarterly data)
| 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 | 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 | 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 | 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 | 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. | 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: 2026-03-31), 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 Q1 2026 Calculation
ROA = 100
× (Net income attributable to Chevron CorporationQ1 2026
+ Net income attributable to Chevron CorporationQ4 2025
+ Net income attributable to Chevron CorporationQ3 2025
+ Net income attributable to Chevron CorporationQ2 2025)
÷ Total assets
= 100 × (2,210 + 2,770 + 3,539 + 2,490)
÷ 329,551 = 3.34%
2 Click competitor name to see calculations.
The analysis of profitability ratios reveals a distinct cyclical pattern in Return on Assets (ROA), characterized by a significant peak in late 2022 and early 2023, followed by a sustained decline through the first quarter of 2026.
- ROA Trajectory and Peak Performance
- A period of rapid growth in asset efficiency is observed from March 2022, where ROA stood at 8.23%, peaking at 13.98% by March 31, 2023. This expansion coincided with substantial increases in net income, which reached heights of 11.62 billion USD in June 2022 and 11.23 billion USD in September 2022.
- Profitability Erosion
- Following the peak in early 2023, a consistent downward trend in ROA is evident. This decline is primarily driven by a contraction in net income attributable to the corporation, which fell from 6.57 billion USD in March 2023 to 2.21 billion USD by March 31, 2026. The ROA dropped below the 10% threshold in September 2023 and continued to diminish, reaching a period low of 3.34% at the end of the analyzed timeframe.
- Asset Base Expansion and Efficiency Impact
- Total assets remained relatively stable between 249 billion USD and 264 billion USD from March 2022 through June 2025. However, a significant increase in the asset base occurred in the second half of 2025, with total assets jumping from 250.82 billion USD in June to 326.50 billion USD by September. This sharp increase in the denominator, occurring simultaneously with stagnating or declining net income, accelerated the compression of the ROA, resulting in the lowest efficiency levels observed in the reported period.
AI Ask an analyst for more