Chevron Corp (CVX)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 237,428,000 | 256,537,000 | 255,878,000 | 256,809,000 |
| Total stockholders’ equity | US$ in thousands | 160,957,000 | 165,265,000 | 158,325,000 | 159,449,000 | 159,282,000 | 158,680,000 | 153,554,000 | 146,219,000 | 139,067,000 | 135,862,000 | 133,182,000 | 131,888,000 | 131,688,000 | 131,774,000 | 134,118,000 | 143,930,000 | 144,213,000 | 155,841,000 | 156,395,000 | 155,045,000 |
| Financial leverage ratio | 1.63 | 1.60 | 1.59 | 1.60 | 1.62 | 1.64 | 1.68 | 1.70 | 1.72 | 1.77 | 1.82 | 1.83 | 1.82 | 1.69 | 1.67 | 1.64 | 1.65 | 1.65 | 1.64 | 1.66 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $261,632,000K ÷ $160,957,000K
= 1.63
The financial leverage ratio of Chevron Corp. has been relatively stable over the past eight quarters, ranging between 1.59 and 1.70. This indicates that the company relies more on debt financing rather than equity to fund its operations and investments.
A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure. Chevron Corp.'s ratios above 1.5 indicate a significant reliance on debt to finance its operations. This can result in higher interest expenses and financial risks for the company, especially in times of economic downturn or rising interest rates.
However, it is important to note that the stability of the financial leverage ratio over the quarters indicates that Chevron Corp. has been managing its debt levels consistently. This suggests that the company has been able to service its debt obligations effectively and maintain a relatively stable capital structure.
Overall, while Chevron Corp.'s financial leverage ratio indicates a higher reliance on debt, the stability of the ratio suggests that the company has been managing its debt levels prudently. It will be important to monitor any changes in the ratio in the future to assess the company's financial risk and capital structure.
Peer comparison
Dec 31, 2023