Chevron Corp (CVX)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	256,938,000	261,632,000	257,709,000	239,535,000	239,790,000
Total stockholders’ equity	US$ in thousands	157,030,000	160,957,000	191,856,000	167,378,000	162,209,000
Financial leverage ratio		1.64	1.63	1.34	1.43	1.48

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $256,938,000K ÷ $157,030,000K
= 1.64

The financial leverage ratio of Chevron Corp has shown fluctuations over the years. As of December 31, 2020, the ratio stood at 1.48, indicating a moderate level of financial leverage. Subsequently, the ratio decreased to 1.43 by December 31, 2021, suggesting a slight improvement in the company's financial leverage position.

By December 31, 2022, the financial leverage ratio further decreased to 1.34, signaling a potentially stronger financial position with less reliance on debt. However, there was an increase in the ratio to 1.63 by December 31, 2023, implying higher financial leverage compared to the previous year.

As of the latest available data on December 31, 2024, Chevron Corp's financial leverage ratio remained relatively high at 1.64. This ratio indicates that the company has a significant portion of its assets financed through debt, which could pose risks during economic uncertainties or market downturns.

Overall, the trend in Chevron Corp's financial leverage ratio suggests varying levels of leverage over the years, highlighting the importance of monitoring and managing the company's debt levels to ensure financial stability and sustainable growth.