Chevron Corp Profitability Analysis

CVX Stock  USD 155.41  0.14  0.09%   
Considering Chevron Corp's profitability and operating efficiency indicators, Chevron Corp's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Chevron Corp's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1993-03-31
Previous Quarter
6.5 B
Current Value
2.3 B
Quarterly Volatility
3.2 B
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
Price To Sales Ratio is likely to drop to 0.90 in 2024. Operating Cash Flow Sales Ratio is likely to drop to 0.12 in 2024. Net Income Applicable To Common Shares is likely to rise to about 42.8 B in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (3.4 B) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.160.1706
Notably Down
Slightly volatile
For Chevron Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chevron Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chevron Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chevron Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chevron Corp over time as well as its relative position and ranking within its peers.
  
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Is Chevron Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chevron Corp. If investors know Chevron will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chevron Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.64)
Dividend Share
6.04
Earnings Share
11.36
Revenue Per Share
104.004
Quarterly Revenue Growth
(0.15)
The market value of Chevron Corp is measured differently than its book value, which is the value of Chevron that is recorded on the company's balance sheet. Investors also form their own opinion of Chevron Corp's value that differs from its market value or its book value, called intrinsic value, which is Chevron Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chevron Corp's market value can be influenced by many factors that don't directly affect Chevron Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chevron Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chevron Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chevron Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Chevron Corp Working Capital vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Chevron Corp's current stock value. Our valuation model uses many indicators to compare Chevron Corp value to that of its competitors to determine the firm's financial worth.
Chevron Corp is number one stock in return on asset category among related companies. It is number one stock in working capital category among related companies reporting about  136,671,802,774  of Working Capital per Return On Asset. Net Working Capital is likely to drop to about 7.1 B in 2024. Change In Working Capital is likely to rise to about (3 B) in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Chevron Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chevron Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Chevron Corp's earnings, one of the primary drivers of an investment's value.

Chevron Working Capital vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Chevron Corp

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0649
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .

Chevron Corp

Working Capital

 = 

Current Assets

-

Current Liabilities

 = 
8.87 B
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.

Chevron Working Capital Comparison

Chevron Corp is currently under evaluation in working capital category among related companies.

Chevron Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Chevron Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chevron Corp will eventually generate negative long term returns. The profitability progress is the general direction of Chevron Corp's change in net profit over the period of time. It can combine multiple indicators of Chevron Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-3.2 B-3.4 B
Operating Income30.1 B20.2 B
Income Before Tax29.6 B18.6 B
Total Other Income Expense Net-469 M-445.6 M
Net Income21.4 B11.9 B
Income Tax Expense8.2 B7.2 B
Net Income Applicable To Common Shares40.8 B42.8 B
Net Income From Continuing Ops21.4 B11.9 B
Interest Income9.3 B4.7 B
Net Interest Income-469 M-492.4 M
Change To Netincome-4.4 B-4.6 B
Net Income Per E B T 0.72  0.48 

Chevron Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Chevron Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Chevron Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Chevron Corp's important profitability drivers and their relationship over time.

Chevron Corp Profitability Trends

Chevron Corp profitability trend refers to the progression of profit or loss within a business. An upward trend means that Chevron Corp's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Chevron Corp's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Chevron Corp Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Chevron Corp different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Chevron Corp in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Chevron Corp's future profitability.

Use Chevron Corp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Chevron Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chevron Corp will appreciate offsetting losses from the drop in the long position's value.

Chevron Corp Pair Trading

Chevron Corp Pair Trading Analysis

The ability to find closely correlated positions to Chevron Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chevron Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Chevron Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Chevron Corp to buy it.
The correlation of Chevron Corp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Chevron Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chevron Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Chevron Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Chevron Corp position

In addition to having Chevron Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Basic Utilities
Basic Utilities Theme
Companies involved in production and distribution of electric, gas, water, and other energy utilities. The Basic Utilities theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Basic Utilities Theme or any other thematic opportunities.
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When determining whether Chevron Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Chevron Corp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Chevron Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Chevron Corp Stock:

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When running Chevron Corp's price analysis, check to measure Chevron Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chevron Corp is operating at the current time. Most of Chevron Corp's value examination focuses on studying past and present price action to predict the probability of Chevron Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chevron Corp's price. Additionally, you may evaluate how the addition of Chevron Corp to your portfolios can decrease your overall portfolio volatility.
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To fully project Chevron Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Chevron Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Chevron Corp's income statement, its balance sheet, and the statement of cash flows.
Potential Chevron Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Chevron Corp investors may work on each financial statement separately, they are all related. The changes in Chevron Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Chevron Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.