Chevron Corp (CVX)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.01 | 0.01 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $578,000K ÷ $160,957,000K
= 0.00
Chevron Corp.'s debt-to-equity ratio has shown a decreasing trend from 0.19 in 2019 to 0.13 in 2023. This indicates that the company has been relying less on debt financing and has been gradually increasing its equity base relative to debt. A lower debt-to-equity ratio means a lower financial risk as it suggests a stronger financial position and lesser dependence on borrowed funds for operations. The decreasing trend in the ratio over the years reflects a positive sign of financial health and stability for Chevron Corp. Additionally, a lower debt-to-equity ratio may also indicate increased shareholder value as the company's equity is a larger proportion of its capital structure compared to debt. Overall, the decreasing trend in Chevron Corp.'s debt-to-equity ratio signals a prudent financial management strategy and a stronger balance sheet position.
Peer comparison
Dec 31, 2023