Chevron Corp (CVX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 22,560,000 | 21,908,000 | 23,734,000 | 24,460,000 | 26,229,000 | 28,839,000 | 34,063,000 | 40,476,000 | 39,950,000 | 36,891,000 | 31,053,000 | 21,616,000 | 16,180,000 | 10,522,000 | 4,239,000 | -6,947,000 | -6,097,000 | -15,302,000 | -12,160,000 | -563,000 |
| Total assets | US$ in thousands | 256,938,000 | 259,232,000 | 260,644,000 | 261,651,000 | 261,632,000 | 263,927,000 | 251,779,000 | 255,886,000 | 257,709,000 | 259,735,000 | 257,936,000 | 249,048,000 | 239,535,000 | 239,948,000 | 242,806,000 | 241,645,000 | 239,790,000 | 223,063,000 | 223,403,000 | 236,677,000 |
| Operating ROA | 8.78% | 8.45% | 9.11% | 9.35% | 10.03% | 10.93% | 13.53% | 15.82% | 15.50% | 14.20% | 12.04% | 8.68% | 6.75% | 4.39% | 1.75% | -2.87% | -2.54% | -6.86% | -5.44% | -0.24% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $22,560,000K ÷ $256,938,000K
= 8.78%
Operating return on assets (operating ROA) is a key financial metric that indicates the efficiency of a company in generating profits from its assets used in operations. Looking at the operating ROA trend of Chevron Corp over the specified period, we observe a fluctuating pattern.
From March 31, 2020, to December 31, 2021, Chevron Corp experienced negative operating ROA figures, indicating that the company was not efficiently utilizing its assets to generate operating profits. However, there was a notable turning point in June 30, 2021, when the operating ROA turned positive at 1.75%. This trend continued to improve, reaching a peak of 15.82% on March 31, 2023.
After this peak, the operating ROA saw a gradual decline but remained above the negative territory. As of December 31, 2024, Chevron Corp's operating ROA stood at 8.78%, demonstrating the company's ability to generate operating profits relative to its asset base, albeit at a lower rate compared to the peak.
Overall, the increasing trend in operating ROA from negative figures to double-digit percentages indicates an improvement in Chevron Corp's operational efficiency and profitability over the specified period. This positive trend suggests that Chevron Corp has been able to enhance its profitability by better utilizing its assets for operations.
Peer comparison
Dec 31, 2024