Profitability analysis
Chevron ‘s total revenues and other income were $201 billion, $246 billion and $162.5 billion in 2023, 2022 and 2021, respectively.
Total revenues and other income in 2023 were down 18.3% year-on-year.
Total revenues and other income in 2022 were up 51.4% year-on-year.
Oil price are greatly affected by supply and demand, which also leads to huge fluctuations in the company’s revenues.
Net income attributable to Chevron was $21.4 billion, $35.5 billion and $15.6 billion in 2023, 2022 and 2021, respectively.
The net profit margin was 10.6%, 14.4% and 9.6% in 2023, 2022 and 2021, respectively.
Cash flow analysis
Net cash provided by operating activities was $35.6 billion, $49.6 billion and $29.2 billion in 2023, 2022 and 2021, respectively.
Capital expenditures were $15.8 billion, $12 billion and $8 billion in 2023, 2022 and 2021, respectively.
Free cash flow was $19.8 billion, $37.6 billion and $21.2 billion in 2023, 2022 and 2021, respectively.
Cash dividends were $11.3 billion, $11 billion and $10.2 billion in 2023, 2022 and 2021, respectively.
Purchases of treasury shares were $14.7 billion, $5.4 billion in 2023 and 2022, respectively.
Balance sheet analysis
Chevron’s total assets were $261.6 billion and $257.7 billion in 2023 and 2022, respectively.
Properties, plant and equipment, net were $153.6 billion in 2023, accounting for 58.7% of total assets.
Cash and cash equivalents were $8.18 billion in 2023, consisting of 3% of total assets.
Total current assets were $41.1 billion as of December 31, 2023.
Total current liabilities were $32.3 billion as of December 31, 2023.
The current ratio was 1.27 times.
Total liabilities were $99.7 billion as of December 31, 2023.
The debt ratio was 38.1%.
Conclusion
We reckon that Chevron’s free cash flow was about $20 billion each year.
We think that $240 billion is reasonable valuation.
Chevron’s stock price is $158.96 per share , which is equivalent to $293.65 billion in market capitalization.
We predict that return on Chevron stock is not more than 10% each year.
You should see the amount of repurchasing stock and paying dividends to shareholders as actual return.
Introduction
Chevron Corporation,* a Delaware corporation, manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in integrated energy and chemicals operations. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by major international oil export pipelines; transporting, storage and marketing of natural gas; carbon capture and storage, and a gas-to-liquids plant. Downstream operations consist primarily of refining crude oil into petroleum products; marketing of crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses and fuel and lubricant additives.
