Chevron Corp (CVX)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	27,506,000	26,229,000	50,190,000	16,180,000	-6,097,000
Revenue	US$ in thousands	202,792,000	196,913,000	246,252,000	155,606,000	94,471,000
Operating profit margin		13.56%	13.32%	20.38%	10.40%	-6.45%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $27,506,000K ÷ $202,792,000K
= 13.56%

Based on the provided data, Chevron Corp's operating profit margin has exhibited variability over the past five years. In December 2020, the company reported a negative operating profit margin of -6.45%, indicating that its operating expenses exceeded its revenue generation during that period.

However, there was a significant improvement in the following year, with the operating profit margin increasing to 10.40% by December 2021. This suggests that Chevron was able to better control its operating expenses relative to its revenues, leading to a positive operating profit margin.

The positive trend continued into December 2022, where the operating profit margin further improved to 20.38%, reflecting the company's enhanced operational efficiency and profitability during that year. The substantial increase in the operating profit margin likely indicates successful cost management and revenue growth strategies implemented by Chevron.

In December 2023, the operating profit margin declined slightly to 13.32%, but remained relatively strong compared to the previous years. This could be attributed to various factors such as changes in market conditions, industry dynamics, or company-specific events impacting profitability.

By December 2024, Chevron's operating profit margin increased marginally to 13.56%. While not as high as the peak in 2022, this level still demonstrates the company's ability to generate profits from its core business operations.

Overall, the analysis of Chevron Corp's operating profit margin indicates a mixed performance over the past five years, with fluctuations reflecting both challenges and successes in managing operational costs and driving profitability.