Chevron Corp (CVX)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 160,957,000 | 159,282,000 | 139,067,000 | 131,688,000 | 144,213,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.01 | 0.01 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $578,000K ÷ ($578,000K + $160,957,000K)
= 0.00
The debt-to-capital ratio of Chevron Corp. has shown fluctuations over the past five years. In 2023, the ratio decreased to 0.11 from 0.13 in 2022, indicating a lower reliance on debt relative to total capital. This decrease suggests that Chevron has been able to reduce its debt levels or increase its capital base, which may enhance its financial stability and creditworthiness. Compared to 2021 and 2020 where the ratios were 0.18 and 0.25 respectively, the downward trend in 2023 is a positive sign.
However, it should be noted that the ratio was higher in 2019 at 0.16 compared to 2023. This suggests that Chevron was more reliant on debt in 2019 relative to the latest year. Overall, the decreasing trend in the debt-to-capital ratio over the past few years indicates that Chevron is managing its capital structure effectively by potentially reducing debt levels or increasing equity, which could strengthen its financial position.
Peer comparison
Dec 31, 2023