Chevron Financial Statements and Financial Ratios Analyzed from 2015 to 2019

Expert Chevron Financial Report & Analysis by Paul Borosky, MBA.

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Hey All,

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!

Sincerely,

Paul, MBA.

Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Sample Table of Contents for Financial Reports

Table of Contents

Page Count: 88 Pages

  • Disclaimer 3
    Acknowledgments 4
    Forward 5
    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
    ROCE 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
    WACC 63
    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

Column1 2019 2018 2017 2016 2015
Revenues                  146,516                  166,339                  141,722                  114,472                    138,477
COGS                    80,113                    94,578                    75,765                    59,321                      69,751
Gross Profit                    66,403                    71,761                    65,957                    55,151                      68,726
SG&A                      4,143                      3,838                      4,110                      4,684                        4,443
Depreciation                    29,218                    19,419                    19,349                    19,457                      21,037
R & D
Other
Operating Expenses                  140,980                  145,764                  132,501                  116,632                    133,635
EBIT                      6,334                    21,323                      9,528                     (1,959)                        4,842
Other Income
Interest Expense                         798                         748                         307                         201                             -
EBT                      5,536                    20,575                      9,221                     (2,160)                        4,842
Taxes                      2,691                      5,715                          (48)                     (1,729)                           132
Net Income                     2,845                   14,860                132,501                       (431)                      4,710

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

Column1 2019 2018 2017 2016 2015
Cash                        5,686                    9,342                    4,813                    6,988                  11,022
Short Term Investment                             63                    1,053                           9                         13                       310
Account Receivable                      13,325                  15,050                  15,353                  14,092                  12,860
Inventory                        5,848                    5,704                    5,585                    5,419                    6,334
Other
Current Assets                    28,329                34,021                28,560                29,619                35,347
Net PPE                    150,494                169,207                177,712                182,186                188,396
Goodwill                        4,463                    4,518                    4,531                    4,581                    4,588
Other
Total Assets                  237,428              253,863              253,806              260,078              266,103
Accounts Payable                      14,103                  13,953                  14,565                  13,986                  13,516
Accrued Expense                        6,589                    4,927                    5,267                    4,882                    4,833
Accrued Taxes
Notes Payable                        3,282                    5,726                    5,192                  10,840                    4,928
LT Debt - Current
Other
Total Current Liabilities                      26,530                  27,171                  27,737                  31,785                  26,464
LT Debt                      23,691                  28,733                  33,477                  35,193                  33,584
Other
Total Liabilities                    92,220                98,221              104,487              113,356              112,217
Common Stock                        1,832                    1,832                    1,832                    1,832                    1,832
Treasury                      44,599                  41,593                  40,833                  41,834                  42,493
Retained Earnings                    174,945                180,987                174,106                173,046                181,578
Other
Total Equity                  145,208              155,642              148,124              145,556              152,716
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

Ratios 2019 2018 2017 2016 2015
Current Ratio                           1.07                    1.25
Cash Ratio                           0.21                    0.34
Quick Ratio                           0.85                    1.04
Net Working Capital                         4,167                11,216

Chevron 2019 Asset Utilization

Ratios 2019 2018 2017 2016 2015
Total Asset Turnover                           0.62                    0.66
Fixed Asset Turnover                           0.97                    0.98
Days Sales Outstanding                         33.20                  33.02
Inventory Turnover                         25.05                  29.16
Accounts Receivable Turnover                         11.00                  11.05
Working Capital Turnover                         35.16                  14.83
AP Turnover                         10.39                  11.92
Average Days Inventory                           0.07                    0.08
Average Days Payable                           0.03                    0.03

Chevron 2019 Profitability Ratios

Ratios 2019 2018 2017 2016 2015
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%
ROCE 3.00% 9.41%
Capital Employed                     210,898              226,692
ROIC 2.10% 8.54%

Chevron 2019 Long-term Debt

Ratios 2019 2018 2017 2016 2015
Debt Ratio 9.98% 11.32%
Debt/Equity 16.32% 18.46%
Times Interest Earned                           7.94                  28.51