Chevron Corp (CVX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 21,369,000 | 35,465,000 | 15,625,000 | -5,543,000 | 2,924,000 |
| Total stockholders’ equity | US$ in thousands | 160,957,000 | 159,282,000 | 139,067,000 | 131,688,000 | 144,213,000 |
| ROE | 13.28% | 22.27% | 11.24% | -4.21% | 2.03% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $21,369,000K ÷ $160,957,000K
= 13.28%
Chevron Corp.'s return on equity (ROE) has displayed fluctuations over the past five years. In 2023, the ROE stands at 13.28%, which is lower compared to the previous year's ROE of 22.27%. This decline suggests a decrease in the company's ability to generate profits from shareholders' equity. The 2022 ROE was notably higher, indicating a more efficient utilization of equity to generate earnings.
Looking back to 2021, the ROE was 11.24%, showing a moderate return on equity. In 2020, Chevron reported a negative ROE of -4.21%, indicating that the company experienced a loss for the period, which resulted in a negative return for its shareholders. However, there was an improvement in 2019, with an ROE of 2.03%, but it was still relatively low.
Overall, Chevron Corp.'s ROE has been volatile in recent years, with fluctuations in profitability and efficiency in generating returns from equity. It would be essential to analyze the underlying factors driving these changes in ROE to assess the company's overall financial performance accurately.
Peer comparison
Dec 31, 2023