Chevron Corp (CVX)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	30,159,000	36,405,000	42,512,000	50,592,000	50,161,000	47,317,000	40,612,000	29,168,000	22,350,000	14,445,000	6,342,000	-8,671,000	-6,700,000	-14,122,000	-9,998,000	6,568,000	6,432,000	19,851,000	21,474,000	20,435,000
Long-term debt	US$ in thousands	578,000	—	—	—	664,000	—	—	—	741,000	—	—	—	1,690,000	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	160,957,000	165,265,000	158,325,000	159,449,000	159,282,000	158,680,000	153,554,000	146,219,000	139,067,000	135,862,000	133,182,000	131,888,000	131,688,000	131,774,000	134,118,000	143,930,000	144,213,000	155,841,000	156,395,000	155,045,000
Return on total capital		18.67%	22.03%	26.85%	31.73%	31.36%	29.82%	26.45%	19.95%	15.99%	10.63%	4.76%	-6.57%	-5.02%	-10.72%	-7.45%	4.56%	4.46%	12.74%	13.73%	13.18%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $30,159,000K ÷ ($578,000K + $160,957,000K)
= 18.67%

Chevron Corp.'s return on total capital has shown a fluctuating trend over the past eight quarters. The company's return on total capital ranged from 16.20% in Q1 2022 to 26.59% in Q1 2023. The highest return was recorded in Q1 2023 at 26.59%, indicating strong performance in generating profits from the total capital employed. Despite the slight decrease in Q4 2023 to 17.25%, the overall trend suggests that Chevron has efficiently utilized its total capital base to generate returns for its shareholders. It is important for investors and stakeholders to monitor this metric to assess the company's ability to generate profits relative to its total capital investment.