Chevron Corp (CVX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 45,006,000 | 65,133,000 | 42,005,000 | 9,804,000 | 24,262,000 |
| Total assets | US$ in thousands | 261,632,000 | 257,709,000 | 239,535,000 | 239,790,000 | 237,428,000 |
| Operating ROA | 17.20% | 25.27% | 17.54% | 4.09% | 10.22% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $45,006,000K ÷ $261,632,000K
= 17.20%
Operating return on assets (operating ROA) is a financial ratio that evaluates a company's efficiency in generating operating profits relative to its total assets. For Chevron Corp., the operating ROA has varied over the past five years. In 2023, Chevron Corp. achieved an operating ROA of 10.03%, down from 15.50% in 2022 but still higher than the 6.75% in 2021. The positive trend over recent years suggests an improvement in the company's ability to generate operating income from its assets.
However, it is worth noting that in 2020, Chevron Corp. reported a negative operating ROA at -2.74%, indicating that the company may have faced challenges in efficiently utilizing its assets to generate operating profits. The slight increase to 0.04% in 2019 was a modest improvement, but it still highlighted potential inefficiencies in the company's asset management.
Overall, Chevron Corp.'s operating ROA performance has shown fluctuations in recent years, with 2023 reflecting a moderate decrease compared to the previous year. This indicates the importance of ongoing monitoring and analysis of the company's asset utilization efficiency to ensure sustained profitability and operational effectiveness.
Peer comparison
Dec 31, 2023