Chevron Financial Statements and Financial Ratios Analyzed from 2015 to 2019
Thanks for visiting my Chevron Financial Report page. On this page, you will be able to find preliminary information about Chevron current financial performance as well as some historical track records and trends.
For a more detailed examination of Chevron financial performance, please check out the "Financial Report". In this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:
- Summarized income statement for the last 5 years.
- Summarized balance sheet for the last 5 years.
- Summary analysis by myself of important income statement, balance sheet, and financial ratio trends and other happenings.
- Five year’s worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is were I use plain English to explain concepts.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Sample Financial Report
Sample Table of Contents for Financial Reports
Table of Contents
Page Count: 88 Pages
- Disclaimer 3
About the Author 7
Company Summary 8
Financial Statement Introduction 10
Income Statement 11
Walmart’s Income Statement – Summary Analysis 12
Income Statement Discussion 12
Balance Sheet 21
Balance Sheet – Summary Analysis 22
Balance Sheet Discussion 23
Financial Ratios 38
Liquidity Ratios 39
Liquidity Ratios - Summary Analysis 39
Liquidity Ratios Discussion 40
Current Ratio 40
Quick Ratio 41
Cash Ratio 42
Other Liquidity Ratios 42
Net Operating Working Capital 42
Asset Ratios 44
Asset Utilization Ratios - Summary Analysis 45
Asset Utilization Ratios Discussion 46
Total Asset Turnover 46
Fixed Asset Turnover 46
Days Sales Outstanding 47
Inventory Turnover 48
Accounts Receivable Turnover 49
Accounts Payable Turnover 50
Other Asset Ratio Calculations 50
Working Capital Turnover 50
Average Days in Inventory 51
Average Days Payable 51
Profitability Ratios 52
Profitability Ratios - Summary Analysis 53
Profitability Ratios Discussion 53
Return on Assets (ROA) 53
Return on Equity (ROE) 54
Profit Margin 55
Gross Profit Margin 56
Operating Profit Margin 56
Basic Earnings Power 57
Capital Employed 58
Debt Ratios 59
Walmart’s Debt Ratios - Summary Analysis 59
Debt Ratios Discussion 60
Long-Term Debt Ratio 60
Debt to Equity Ratio 61
Times Interest Earned 61
Book Value of WACC 63
Free Cash Flow (FCF) 65
Free Cash Flows – 2016 - 2020 65
Free Cash Flows – 5 Year Projections 66
Income Statement – Projections for 5 years 67
Income Statement – 5 Year Projections 67
Balance Sheet – Projections for 5 years 68
Balance Sheet – 5 Year Projections 68
Company Valuation and Intrinsic Stock Price 70
Appendix 1: Summarized Income Statement 71
Appendix 2: Income Statement – Percent of Sales 72
Appendix 3: Income Statement – Year over Year Growth 73
Appendix 4: Summarized Balance Sheet 74
Appendix 5: Balance Sheet as Percent of Total Assets 76
Appendix 6: Summarized Financial Ratios 77
Chevron Corporation: Brief Summary
Chevron (CVX) trades on the New York Stock Exchange. The company has its headquarters in San Ramon, California. The firm competes in the energy sector, specifically in the oil and gas integrated industry. Presently, the Chevron Corporation employs over 48,000 employees.
From company operations and financial perspective, Chevron is led by Michael Wirth, CEO. The organization's stock prices ranged between $51-$127. At present, the company is about in the middle of the range at $88. The company’s market Is 164 billion dollars with a beta of approximately 1.3. This indicates that the firm is slightly above average in relation to risk. Finally, the organization does pay dividends at about $5.16 annually.
Chevron Financial Report Sources
“Chevron 2019 Company Analysis… For Beginners: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA. and owner of Quality Business Plan. In this report, I used Chevron 2018 10k, 2017 10k annual report, 2016 10k annual report, 2015 10k annual report, and 2019 10k annual report as the basis for information gathering.
Section 1: Chevron Income Statement Analyzed 2015 to 2019
In this section, I walk through a broad definition as to what an income statement is and why it is important. From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail. After each line item is defined and discussed, I finally offer a summary analysis of Chevron important income statement line item trends from 2015 to 2019, in most cases.
Chevron Revenue Growth.
In 2015, Chevron’s revenues were $138 billion. In the next year, the organizations revenues would fall to $114 billion and then jump up to $147 billion and then $166 billion in 2018 only to fall back down $246 billion in 2019. These whiplash revenues does have an upward trajectory over the last five years. However, there do seem to be significant peaks and valleys. On average though, Chevron Corporation has attained a 5.6% growth rate annually. From my experiences, this is about average, or slightly above average, as compared to other multinational corporations.
Chevron 2019 Income Statement
|R & D|
Section 2: Chevron Balance Sheet Analyzed from 2015 to 2019
For Chevron balance sheet, I again go through each important line item from the balance sheet. In reviewing each line item, I will define their balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2019. Next, I then offer a summary analysis of their important balance sheet line items.
Chevron's Property, Plant, and Equipment.
Chevron’s property plant and equipment has continually declined between the years of 2015 and 2019. In 2015, their property, plant, and equipment were approximately $188 billion. In the next five years, this balance sheet line item would continually fall to $150.4 billion in 2019. This consistent, five-year, decline indicates that the organization is continually divesting fixed assets. This may indicate the organization does not anticipate future growth was is embracing a continued reduction in property, plant, equipment. As this relates to future growth, investors should expect a continued decline in revenues.
Chevron 2019 Summary Balance Sheet
|Short Term Investment||63||1,053||9||13||310|
|LT Debt - Current|
|Total Current Liabilities||26,530||27,171||27,737||31,785||26,464|
|Total Equity & Liability||237,428||253,863||253,806||260,078||266,103|
Section 3: Chevron Financial Ratios Analyzed from 2015 to 2019
For this section, I have chosen several different financial ratios to review for Chevron from 2015 to 2019. In reviewing each of their financial ratios, I first start with defining the financial ratio. Next, I supply the financial formula for calculating the specific ratio. Finally, I offer a brief analysis of their important Financial ratios.
Chevron Corporation Current Ratio.
Chevron Corporation ended 2015 with the current ratio of 1.34. In the next four years, the current ratio would fluctuate between .93 in 2016 to 1.25 and 2018, only ending 2019 at 1.07. These fluctuations indicate that the firm has no set current ratio target. This is a little bit concerning the foreign organization that is continually reducing its property, plant, and equipment and suffers from significant fluctuations in the revenues. Even though the company does enjoy continued cash flows from sales, their industry, oil, and gas, is often highly volatile due to national competitors. In my most humble of opinions, Chevron needs to hold a higher current ratio, between 1.25 and 1.35, in order to sustain the impression of short term financial solvency.
Chevron Corporation Total Asset Turnover.
Chevron ended 2015 with a total asset turnover of .52. In 2016, their efficiency for utilizing total assets fell 2.44. However, in the next three years, their total asset turnover would climb from .56 in 2017 to .62 and 2019. A driving reason for the increased total asset turnover may have been there continued reduction in property, plant, and equipment. If the company does not expect to increase substantially their revenues, then investors should expect this trend to continue.
Chevron Corporation Return on Assets.
Chevron’s return on assets in 2015 at 1.77%. This means that the company is making a moderate return on assets utilized. In 2017, the organization’s return on assets would jump to 52.2% only to continually fall in 2018 (5.85%) and 2019 at 1.2%. From an investor’s perspective, this indicates that the company can still divest significant assets and still be able to generate and sustain the current revenue level.
Chevron Corporation Debt ratio.
The Chevron Corporation ended 2015 with a debt ratio of 12.6%. As compared to other multi-national organizations, this debt level seems relatively low. Further, their debt level would climb to 13.53% in 2016 only to continually declined through the next several years, and in 2019 at 9.98%. Reducing the organization's debt level seems to be running in tandem with the reduction in property, plant, equipment. In other words, the organization seems to be selling off its property and equipment to pay down its debt. The strategy may be effective if the organization does not believe that its revenues will enjoy sustaining growth.
Chevron 2019 Liquidity Ratios
|Net Working Capital||4,167||11,216|
Chevron 2019 Asset Utilization
|Total Asset Turnover||0.62||0.66|
|Fixed Asset Turnover||0.97||0.98|
|Days Sales Outstanding||33.20||33.02|
|Accounts Receivable Turnover||11.00||11.05|
|Working Capital Turnover||35.16||14.83|
|Average Days Inventory||0.07||0.08|
|Average Days Payable||0.03||0.03|
Chevron 2019 Profitability Ratios
|Return on Assets||1.20%||5.85%|
|Return on Equity||1.96%||9.55%|
|Net Profit Margin||1.94%||8.93%|
|Gross Profit Margin||45.32%||43.14%|
|Operating Profit Margin||4.32%||12.82%|
|Basic Earning Power||2.67%||8.40%|
Chevron 2019 Long-term Debt
|Times Interest Earned||7.94||28.51|