Chevron Corp (CVX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 30,159,000 | 50,161,000 | 22,350,000 | -6,700,000 | 6,432,000 |
| Long-term debt | US$ in thousands | 578,000 | 664,000 | 741,000 | 1,690,000 | — |
| Total stockholders’ equity | US$ in thousands | 160,957,000 | 159,282,000 | 139,067,000 | 131,688,000 | 144,213,000 |
| Return on total capital | 18.67% | 31.36% | 15.99% | -5.02% | 4.46% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $30,159,000K ÷ ($578,000K + $160,957,000K)
= 18.67%
Chevron Corp.'s return on total capital has fluctuated over the past five years. In 2023, it stood at 17.25%, showing a decrease from the previous year's 26.58%. This decline suggests a decreased efficiency in generating returns on the total capital employed in the business. However, the return in 2023 is still higher than the levels seen in 2021, 2020, and 2019, indicating an improvement over those periods. It is also worth noting the negative return in 2020 and the relatively low return in 2019, which may have been impacted by economic conditions or company-specific challenges during those years. Overall, while the return on total capital for Chevron Corp. has experienced fluctuations, the company managed to achieve a moderate return in 2023.
Peer comparison
Dec 31, 2023