Chevron Corporation is a public multinational energy corporation traded as NYSE:CVX, headquartered in San Ramon, California USA. Chevron and was founded on September 10, 1879. CVX is one of the largest oil companies as of 2019. The company produced fuel products, base oils and process oils, lubricants, chemicals, aviation fuels and marine fuels. The company is engaged in hydrocarbon exploration and production and refining.
Chevron Corp (CVX) Extended Graph Analysis
1. CVX CASH FLOW
|Net cash flow provided by operating activities||31,475,000,000||19,456,000,000||12,846,000,000||20,515,000,000||30,618,000,000||30,808,000,000|
|Net cash provided by (used for) financing activities||-4,999,000,000||2,815,000,000||25,000,000||-14,554,000,000||-13,699,000,000||-15,243,000,000|
|Net cash used for investing activities||-29,893,000,000||-23,808,000,000||-16,852,000,000||-8,201,000,000||-12,290,000,000||-13,468,000,000|
|Free cash flow||-3,932,000,000||-10,048,000,000||5,263,000,000||7,111,000,000||16,826,000,000||16,911,000,000|
- Net cash flow provided by operating activities were $30.8 billion in the trailing twelve months.
- Net cash used for investing activities was -$13.5 billion in the trailing twelve months.
- Cash provided by (used for) financing activities was -$15 billion in the trailing twelve months.
- Capital expenditure was -$13.9 billion in the trailing twelve months.
- Free cash flow was $16.9 billion in the trailing twelve months.
- Net income and depreciation have a significant amount in cash provided by operating activities.
- Cash used for investing activities were investment in property, plant and equipment, and purchases of investment.
- Cash provided by (used for) financing activities were debt issued and repayment, and dividend payments.
- Capital expenditure is investment in property, plant and equipment.
- Free cash flow had less one percent increase from 2018 to the trailing twelve months.
CVX was able to provide cash from operations in the last five years. Moreover, the company was able to generate a free cash flow from 2017 to the trailing twelve months.
2. CVX BALANCE SHEET
|Net property, plant and equipment||183,173,000,000||188,396,000,000||182,186,000,000||177,712,000,000||169,207,000,000||164,363,000,000|
|Total non-current assets||223,794,000,000||230,756,000,000||230,459,000,000||225,246,000,000||219,842,000,000||222,549,000,000|
- Total cash was $11.8 billion in Q3 2019.
- Current assets were $34 billion in Q3 2019.
- Net property, plant and equipment was $164 billion in Q3 2019.
- Total non-current assets were $223 billion in Q3 2019.
- Total assets were $257 billion in Q3 2019.
- Current liabilities were $30 billion in Q3 2019.
- Non-current liabilities were $70 billion in Q3 2019.
- Total liabilities were $107 billion in Q3 2019.
- Retained earnings were $184 billion in Q3 2019.
- Stockholders equity was $156 billion in Q3 2019.
- Total cash was erratic in movement in the last five years. It grows 14 percent from 2018. It represents 35 percent of current assets.
- Current assets were erratic in movement in the last five years. It represents 13 percent of total assets.
- Net property, plant and equipment represents 74 percent of total non-current assets.
- Total non-current assets represents 87 percent of total assets.
- Total assets grew 1 percent from 2018.
- Current liabilities represent 30 percent of total liabilities.
- Non-current liabilities represent 70 percent of total liabilities.
- Total liabilities was 39 percent of total liabilities and stockholders equity.
- Retained earnings was 118 percent of equity.
- Stockholders equity represents 61 percent of total liabilities and shareholders equity.
The balance sheet is liquid. The company’s current assets are sufficient for its current obligations. CVX is using more of the shareholders investment than the sources from creditors in the usual business operations. In other words the shareholders have more stake than the creditors in the trailing twelve months.
3. CVX INCOME AND MARKET
- Revenue was $146 billion in the trailing twelve months.
- EBIT was $13 billion in the trailing twelve months.
- Net income was $13 billion in the trailing twelve months.
- The market capitalization was $202.588 billion in the trailing twelve months.
- Intrinsic value was $995 billion in the trailing twelve months.
- Revenue was erratic in movement. It was down 8 percent from 2018.
- EBIT represents 9 percent of revenue in the trailing twelve months.
- Net income was 9 percent of revenue in the trailing twelve months.
- Market capitalization was erratic in movement in the last five years. It shows a decrease of 2 percent from 2018.
- Intrinsic value was higher than the market capitalization by 3x in the trailing twelve months.
The company was able to generate sufficient revenue for the operation of the business in the trailing twelve months.
4. CVX FINANCIAL RATIOS
|Asset turnover (average)||0.77||0.49||0.42||0.52||0.63||0.57|
|Return on assets %||7.4||1.72||-0.19||3.58||5.84||5.17|
|Return on equity %||12.65||2.98||-0.33||6.26||9.8||8.57|
|Return on invested capital %||10.92||2.45||-0.2||5.02||8.17||7.31|
- Asset turnover was averaging 0.57 in the trailing twelve months.
- Return on asset was 5.17 percent in the trailing months.
- Return on equity was $8.57 percent in the trailing twelve months.
- Debt/Equity was 0.16 in the trailing twelve months.
- Return on invested capital was 7.31 percent in the trailing twelve months.
- Interest coverage was 24.25 in the trailing twelve months.
- Asset turnover indicates that for every dollar invested in assets, the company generates 57 cents of sales.
- Return on asset indicates that for every dollar invested in assets, CVX generated 5.17 cents of net income.
- Return on equity indicates that for every dollar of the capital that the shareholders invested, the company generates 8.57 cents profit.
- Debt to Equity indicates that the company has $0.16 debt for every dollar of assets.
- Return on invested capital indicates that the company generated a 7.31 percent return from the company’s investments.
- The interest coverage indicates that the company has the ability to make interest payments on its debt in due date.
The company has the ability to generate cash for its daily business operations. CVX is using more of the investors money than creditors.
5. CVX KEY EXECUTIVE COMPENSATION
|Key Executive Compensation||44,239,015||46,489,214||57,690,075||64,632,139||55,846,538|
|John S. Watson/Chairman of the Board and Chief Executive Officer||25,970,417||22,029,809||24,657,491||24,781,568||1,241,499|
|Patricia E. Yarrington/Vice President and Chief Financial Officer||9,781,357||7,379,867||6,541,425||8,152,053||7,159,079|
|Michael K. Wirth/Vice Chairman of the Board and Executive Vice President, Midstream & Development||8,487,241||8,123,840||9,129,645||11,669,681||20,640,623|
|James William Johnson/Executive Vice President, Upstream||8,955,698||9,416,320||11,024,515||10,925,982|
|Pierre R. Breber/Executive Vice President, Downstream & Chemicals||8,030,044|
|Joseph C. Geagea/Executive Vice President, Technology, Projects and Services||7,945,194||9,004,322||7,849,411|
- Total key executive compensation was $55,846,538 in 2018.
- Chairman of the Board and CEO compensation was $1,241,499 in 2018.
- Vice President and CFO compensation was $7,159,079 in 2018.
- Vice Chairman of the Board and EVP Mainstream & Development compensation was $20,640,623 in 2018.
- EVP Upstream compensation was $10,925,982 in 2018.
- EVP Downstream and Chemicals compensation was $8,030,044 in 2018.
- EVP Technology, Projects and Services compensation was $7,849,411 in 2018.
- The key executive total compensation represents 0.38 percent of net income in 2018.
- Chairman of the Board and CEO compensation represents 2 percent of the total key executive compensation.
- Vice President and CFO compensation represents 13 percent of the total key executive compensation in 2018.
- Vice Chairman of the Board and EVP Mainstream & Development compensation represents 37 percent of the total key executive compensation in 2018.
- EVP Upstream compensation represents 20 percent of the total key executive compensation in 2018.
- EVP Downstream and Chemicals compensation represents 14 percent of the total key executive compensation in 2018.
- EVP Technology, Projects and Services compensation represents 14 percent of the total key executive compensation in 2018.
The company is spending less than one percent of its net income in its key executive compensation.
6. CVX LOBBYING AND CONTRIBUTIONS
The company has been lobbying and contributions to politicians yearly since 1998. A note from Center for Responsive Politics were quoted below:
“NOTE: Figures on this page are calculations by the Center for Responsive Politics based on data from the Senate Office of Public Records. Data for the most recent year was downloaded on January 23, 2020 and includes spending from January 1 – December 31. Prior years include spending from January through December.”
The company’s total lobbying and contributions in 2019 represents 0.07 percent of net income in 2019.
7. CVX FINANCIAL STRENGTH
|Market value of equity||211,134,800,000|
|Book value of total liabilities||99,309,000,000|
|A – Working Capital / Total Assets||0.0270||1.20||0.03|
|B – Retained Earnings / Total Assets||0.71||1.40||1.00|
|C – EBIT / Total Assets||0.05||3.30||0.17|
|D – Market Value of Equity / Book Value of Total Liabilities||2.13||0.60||1.28|
|E – Sales / Total Assets||0.57||1.0||0.57|
Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.
Chevron Corporation. has a Z-Score of 3.05. Dr. Altman’s grading scale of 3.0 and above indicates that the company will not declare bankruptcy in near future. In other terms, the company is not close to insolvency. The main factors of this statistical measurement are profitability, liquidity, leverage and efficiency.
The company is capable of producing sufficient revenue for the operation of the business and able to produce free cash flow in the last three years.
Researched and written by Criselda