Chevron Corp (CVX)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 256,938,000 | 259,232,000 | 260,644,000 | 261,651,000 | 261,632,000 | 263,927,000 | 251,779,000 | 255,886,000 | 257,709,000 | 259,735,000 | 257,936,000 | 249,048,000 | 239,535,000 | 239,948,000 | 242,806,000 | 241,645,000 | 239,790,000 | 223,063,000 | 223,403,000 | 236,677,000 |
| 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 |
| Financial leverage ratio | 1.69 | 1.66 | 1.64 | 1.63 | 1.63 | 1.60 | 1.59 | 1.60 | 1.34 | 1.38 | 1.68 | 1.46 | 1.43 | 1.46 | 1.50 | 1.50 | 1.48 | 1.35 | 1.33 | 1.33 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $256,938,000K ÷ $152,318,000K
= 1.69
The financial leverage ratio of Chevron Corp has been relatively stable over the analyzed period, ranging from 1.33 to 1.69. The ratio measures the extent to which the company relies on debt financing compared to equity. A higher ratio indicates higher financial leverage, which can magnify returns on equity but also increases financial risk.
Chevron's financial leverage ratio increased steadily from 1.33 as of March 31, 2020, reaching a peak of 1.69 by December 31, 2024. This suggests the company increased its reliance on debt to finance its operations during this period. However, the ratio slightly fluctuated in between, indicating some strategic adjustments in the company's capital structure.
The significant increase in the ratio from 1.33 to 1.69 over the period might imply that Chevron's debt levels grew faster compared to its equity, potentially signaling a shift towards more aggressive financing or investment strategies. This trend may warrant further investigation into the company's debt management and capital allocation strategies to ensure sustainable financial health and risk management in the long term.
Peer comparison
Dec 31, 2024