ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Chevron's annualizedNet Income for the quarter that ended in Jun. 2022 was $46,488 Mil.
Chevron's average Total Assets over the quarter that ended in Jun. 2022 was $253,492 Mil. Therefore, Chevron's annualized ROA % for the quarter that ended in Jun. 2022 was 18.34%.
The historical rank and industry rank for Chevron's ROA % or its related term are showing as below:
CVX'
s ROA % Range Over the Past 10 Years
Min: -2.32 Med: 4.71 Max: 11.83
Current: 11.81
During the past 13 years, Chevron's highest ROA % was 11.83%. The lowest was -2.32%. And the median was 4.71%.
CVX's ROA % is ranked better than 81% of 1105
companies
in the Oil & Gas industry
Industry Median: 2.37
vs CVX: 11.81
Chevron ROA % Historical Data
The historical data trend for Chevron's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Chevron Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
ROA %
3.58
5.84
1.19
-2.32
6.52
Chevron Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
ROA %
5.09
10.13
8.43
10.25
18.34
Competitive Comparison
For the Oil & Gas Integrated subindustry, Chevron's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Chevron ROA % Distribution
For the Oil & Gas industry and Energy sector, Chevron's ROA % distribution charts can be found below:
* The bar in red indicates where Chevron's ROA % falls into.
Chevron ROA % Calculation
Chevron's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2022) net income data.
ROA % is displayed in the 30-year financial page.
Chevron (NYSE:CVX) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Chevron ROA % Related Terms
Thank you for viewing the detailed overview of Chevron's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chevron is an integrated energy company with exploration, production, and refining operations worldwide. It is the second- largest oil company in the United States with production of 3.1 million of barrels of oil equivalent a day, including 7.7 million cubic feet a day of natural gas and 1.8 million of barrels of liquids a day. Production activities take place in North America, South America, Europe, Africa, Asia, and Australia. Its refineries are in the U.S. and Asia for total refining capacity of 1.8 million barrels of oil a day. Proven reserves at year-end 2021 stood at 11.3 billion barrels of oil equivalent, including 6.1 billion barrels of liquids and 30.9 trillion cubic feet of natural gas.
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