Chevron Corp (CVX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 578,000 | 664,000 | 741,000 | 1,690,000 | — |
| Total assets | US$ in thousands | 261,632,000 | 257,709,000 | 239,535,000 | 239,790,000 | 237,428,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $578,000K ÷ $261,632,000K
= 0.00
The debt-to-assets ratio of Chevron Corp. has fluctuated over the past five years, ranging from 0.08 to 0.18. A lower debt-to-assets ratio indicates that a company relies less on debt financing and has a higher proportion of assets financed through equity.
In 2023, Chevron Corp. improved its debt-to-assets ratio to 0.08, reflecting a lower level of debt relative to its total assets compared to the previous year. This suggests that the company may be effectively managing its debt levels and maintaining a stronger financial position.
The trend of decreasing debt-to-assets ratio from 2020 to 2023 indicates that Chevron Corp. may have been reducing its reliance on debt financing over the years. A lower debt-to-assets ratio can be viewed positively by investors and creditors as it signifies lower financial risk and better solvency for the company.
Overall, the decreasing trend in Chevron Corp.'s debt-to-assets ratio signals a potentially improved financial health and conservative debt management strategy, which could contribute to the company's long-term stability and resilience in the face of economic uncertainties.
Peer comparison
Dec 31, 2023