Chevron Corp (CVX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Chevron Corp.'s solvency ratios indicate a stable financial position over the past eight quarters. The debt-to-assets ratio has remained consistently low, ranging between 0.08 and 0.12, suggesting that the company relies minimally on debt to finance its assets. The debt-to-capital ratio has also shown a steady trend, indicating that debt forms a relatively small portion of the company's capital structure, hovering between 0.11 and 0.17.
Similarly, the debt-to-equity ratio has remained relatively low, varying from 0.12 to 0.20, showing that Chevron Corp. primarily finances its operations through equity rather than debt. The financial leverage ratio, which indicates the extent to which the company uses debt in its capital structure, has been relatively consistent around 1.60 to 1.70, demonstrating a moderate level of leverage.
Overall, based on these solvency ratios, Chevron Corp. appears to have a conservative approach to debt management and maintains a healthy balance between debt and equity in its capital structure, indicating a strong solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 48.88 | 62.12 | 70.85 | 83.07 | 79.62 | 77.44 | 61.81 | 40.91 | 28.84 | 18.19 | 8.09 | -11.25 | -9.12 | -20.32 | -13.73 | 8.71 | 7.87 | 20.19 | 22.18 | 20.70 |
Interest coverage ratio is a key financial metric used to evaluate a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing the company's earnings before interest and taxes (EBIT) by its interest expenses for a specific period.
Looking at the interest coverage ratios of Chevron Corp. over the past eight quarters, we observe a generally positive trend in the company's ability to cover its interest expenses. The interest coverage ratio has shown a consistent increase from Q1 2022 to Q4 2023, indicating improving financial health and a stronger ability to service its debt obligations.
The highest interest coverage ratio was observed in Q1 2023 at 98.11, indicating that Chevron Corp. generated earnings that were almost 98 times higher than its interest expenses for that quarter. This suggests a very strong financial position and a healthy ability to meet its interest payments comfortably.
Overall, the trend of increasing interest coverage ratios over the past quarters reflects positively on Chevron Corp.'s financial stability and ability to manage its debt obligations effectively. Investors and creditors can take this as a positive indicator of the company's financial health and sustainability.