Chevron Corp (CVX)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 200,949,000 | 246,252,000 | 162,465,000 | 94,692,000 | 146,516,000 |
| Total assets | US$ in thousands | 261,632,000 | 257,709,000 | 239,535,000 | 239,790,000 | 237,428,000 |
| Total asset turnover | 0.77 | 0.96 | 0.68 | 0.39 | 0.62 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $200,949,000K ÷ $261,632,000K
= 0.77
Chevron Corp.'s total asset turnover has fluctuated over the past five years. The ratio indicates how efficiently the company is generating revenue from its total assets. In 2023, the total asset turnover was 0.75, showing that for every dollar of total assets, Chevron generated $0.75 of revenue. This implies a slight decrease compared to the previous year, where the ratio was 0.91. A lower total asset turnover could suggest that the company is less efficient in utilizing its assets to generate sales.
Comparing to 2021 and 2020, when the total asset turnover was 0.65 and 0.39 respectively, Chevron demonstrated an improvement in asset utilization in 2023. However, the ratio is still below the levels seen in 2019 when it was 0.59. This indicates that Chevron's asset efficiency in 2023 was lower than in 2019.
Overall, while there has been some variability in Chevron Corp.'s total asset turnover over the years, it is essential for the company to aim for a higher ratio to indicate better efficiency in generating revenue from its total assets.
Peer comparison
Dec 31, 2023