Chevron Corp (CVX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 28,100,000 | 28,225,000 | 30,424,000 | 31,232,000 | 32,826,000 | 36,374,000 | 42,459,000 | 50,634,000 | 50,190,000 | 48,366,000 | 41,658,000 | 30,133,000 | 23,318,000 | 17,186,000 | 9,077,000 | -6,750,000 | -4,818,000 | -15,020,000 | -10,894,000 | 6,459,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 152,318,000 | 156,202,000 | 159,233,000 | 160,625,000 | 160,957,000 | 165,265,000 | 158,325,000 | 159,449,000 | 191,856,000 | 188,226,000 | 153,554,000 | 170,891,000 | 167,378,000 | 164,876,000 | 161,472,000 | 161,117,000 | 162,209,000 | 165,341,000 | 167,954,000 | 177,945,000 |
| Return on total capital | 18.45% | 18.07% | 19.11% | 19.44% | 20.39% | 22.01% | 26.82% | 31.76% | 26.16% | 25.70% | 27.13% | 17.63% | 13.93% | 10.42% | 5.62% | -4.19% | -2.97% | -9.08% | -6.49% | 3.63% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $28,100,000K ÷ ($—K + $152,318,000K)
= 18.45%
Return on total capital is a key financial metric that indicates how efficiently a company utilizes its capital to generate profits. Looking at the data for Chevron Corp, the return on total capital has shown fluctuations over the reported periods.
Chevron's return on total capital was negative in the second and third quarters of 2020, indicating that the company was not generating sufficient profits relative to the total capital employed during those periods. However, there was a significant improvement in subsequent quarters, with positive returns recorded from the first quarter of 2021 onwards.
The return on total capital increased steadily throughout 2021 and 2022, reaching its peak in the first quarter of 2024 at 31.76%. This demonstrates that Chevron was effectively utilizing its capital to generate higher returns during this period.
Although there was a slight decline in the return on total capital towards the end of 2024, it remained relatively stable and above 18%. Overall, Chevron's return on total capital has shown a positive trend, indicating improved efficiency in utilizing capital to drive profitability over the analyzed period.
Peer comparison
Dec 31, 2024