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Chevron (NYSE:CVX) ROC (Joel Greenblatt) %

: 9.20% (As of Dec. 2023)
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Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Chevron's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 9.20%.

The historical rank and industry rank for Chevron's ROC (Joel Greenblatt) % or its related term are showing as below:

CVX' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -4.4   Med: 8.71   Max: 34.34
Current: 20.35

During the past 13 years, Chevron's highest ROC (Joel Greenblatt) % was 34.34%. The lowest was -4.40%. And the median was 8.71%.

CVX's ROC (Joel Greenblatt) % is ranked better than
68.87% of 1057 companies
in the Oil & Gas industry
Industry Median: 10.56 vs CVX: 20.35

Chevron's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Chevron ROC (Joel Greenblatt) % Historical Data

The historical data trend for Chevron's ROC (Joel Greenblatt) % 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 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.93 -4.40 14.65 34.34 20.90

Chevron Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.46 26.72 21.79 23.27 9.20

Competitive Comparison

For the Oil & Gas Integrated subindustry, Chevron's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Distribution

For the Oil & Gas industry and Energy sector, Chevron's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Chevron's ROC (Joel Greenblatt) % falls into.



Chevron ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(21993 + 9428 + 4373) - (32823 + 0 + 0)
=2971

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (0 + 0 + 0)
=0

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Chevron for the quarter that ended in Dec. 2023 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=14440/( ( (153972 + max(2971, 0)) + (0 + max(0, 0)) )/ 1 )
=14440/( ( 156943 + 0 )/ 1 )
=14440/156943
=9.20 %

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT 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.


Chevron  (NYSE:CVX) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Chevron ROC (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Chevron's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Chevron (NYSE:CVX) Business Description

Industry
Address
6001 Bollinger Canyon Road, San Ramon, CA, USA, 94583-2324
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 3.0 million of barrels of oil equivalent a day, including 7.7 million cubic feet a day of natural gas and 1.7 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 2022 stood at 11.2 billion barrels of oil equivalent, including 6.1 billion barrels of liquids and 30.9 trillion cubic feet of natural gas.
Executives
Pierre R Breber officer: Vice President and President 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Jeff B Gustavson officer: Vice President 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Alana K Knowles officer: VP and Controller 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Rhonda J Morris officer: Vice President 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
James William Johnson officer: Senior Vice President 5125 DOLIVER DRIVE, HOUSTON TX 77056
Alice P Gast director LEHIGH UNIVERSITY, 27 MEMORIAL DRIVE WEST, BETHLEHEM PA 18015
Michael K Wirth officer: Executive Vice President 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
R. Hewitt Pate officer: VP and General Counsel 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Andrew Nigel Hearne officer: Executive Vice President 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Wanda M Austin director 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Cynthia J Warner director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Joseph C Geagea officer: Senior Vice President 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Enrique Jr Hernandez director INTER-CON SECURITY SYSTEMS, INC., 210 SOUTH DELACEY AVENUE, PASADENA CA 91105
David A Inchausti officer: Vice Pres. and Comptroller 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Mark A Nelson officer: Vice President 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583