Chevron Corp (CVX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 256,938,000 | 261,632,000 | 257,709,000 | 239,535,000 | 239,790,000 |
| Operating ROA | 10.71% | 10.03% | 19.48% | 6.75% | -2.54% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $27,506,000K ÷ $256,938,000K
= 10.71%
Based on the data provided, Chevron Corp's operating return on assets (ROA) has shown fluctuations over the past five years. As of December 31, 2020, the operating ROA was negative at -2.54%, indicating that the company was not generating a sufficient operating profit relative to its assets during that period.
However, there was a significant turnaround in the following years, with the operating ROA increasing to 6.75% as of December 31, 2021, and further rising to 19.48% by December 31, 2022. This suggests that Chevron was able to improve its operating efficiency and generate a higher level of operating income relative to its assets during these years.
Subsequently, there was a slight decline in the operating ROA to 10.03% by December 31, 2023, followed by a modest increase to 10.71% by December 31, 2024. These figures indicate that the company maintained a decent level of operating profitability relative to its asset base in these years.
Overall, Chevron Corp's operating ROA has shown variability over the past five years, with improvements in operational efficiency and profitability after a negative performance in 2020. It is important for the company to continue monitoring and managing its operating ROA to ensure sustainable profitability and efficient asset utilization in the future.
Peer comparison
Dec 31, 2024