Chevron Corp (CVX)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 17,661,000 | 16,681,000 | 18,720,000 | 20,296,000 | 21,369,000 | 25,463,000 | 30,168,000 | 35,780,000 | 35,465,000 | 34,167,000 | 29,047,000 | 20,507,000 | 15,625,000 | 9,905,000 | 3,587,000 | -7,765,000 | -5,543,000 | -11,488,000 | -8,701,000 | 3,874,000 |
| 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 |
| ROA | 6.87% | 6.43% | 7.18% | 7.76% | 8.17% | 9.65% | 11.98% | 13.98% | 13.76% | 13.15% | 11.26% | 8.23% | 6.52% | 4.13% | 1.48% | -3.21% | -2.31% | -5.15% | -3.89% | 1.64% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $17,661,000K ÷ $256,938,000K
= 6.87%
Return on assets (ROA) is an important financial ratio that measures a company's ability to generate profit from its assets. Chevron Corp's ROA has shown fluctuating trends over the past few years, indicating variations in the company's efficiency in utilizing its assets to generate earnings.
From March 31, 2020, to June 30, 2021, Chevron's ROA was negative, suggesting that the company was not effectively converting its assets into profit during this period. However, from September 30, 2021, onwards, there has been a notable improvement in Chevron's ROA, with the ratio consistently increasing quarter by quarter.
The ROA increased from 4.13% in September 2021 to 6.87% by December 31, 2024, signifying a positive trend in the company's asset utilization and profitability. The upward trajectory of Chevron's ROA indicates that the company has been more efficient in generating earnings relative to its total assets during this period.
Overall, the improving ROA of Chevron Corp reflects positively on the company's operational efficiency and profitability, suggesting that it has been effectively managing its assets to generate higher returns for its shareholders.
Peer comparison
Dec 31, 2024