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Chevron Altman Z-Score

: 4.12 (As of Today)
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Good Sign:

Altman Z-score of 4.12 is strong.

Chevron has a Altman Z-Score of 4.12, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Chevron's Altman Z-Score or its related term are showing as below:

CVX' s Altman Z-Score Range Over the Past 10 Years
Min: 2.17   Med: 3.64   Max: 6.27
Current: 4.12

During the past 13 years, Chevron's highest Altman Z-Score was 6.27. The lowest was 2.17. And the median was 3.64.


Chevron Altman Z-Score Historical Data

The historical data trend for Chevron's Altman Z-Score 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.99 3.20 3.19 2.17 3.32

Chevron Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score 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 2.62 2.88 3.32 3.99 3.99

Competitive Comparison

For the Oil & Gas Integrated subindustry, Chevron's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Oil & Gas industry and Energy sector, Chevron's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Chevron's Altman Z-Score falls into.



Chevron Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Chevron's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0468+1.4*0.6897+3.3*0.1578+0.6*2.9693+1.0*0.799
=4.12

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $257,936 Mil.
Total Current Assets was $51,188 Mil.
Total Current Liabilities was $39,121 Mil.
Retained Earnings was $177,909 Mil.
Pre-Tax Income was 16003 + 9054 + 6985 + 8055 = $40,097 Mil.
Interest Expense was -129 + -136 + -155 + -174 = $-594 Mil.
Revenue was 65372 + 52314 + 45861 + 42552 = $206,099 Mil.
Market Cap (Today) was $306,945 Mil.
Total Liabilities was $103,374 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(51188 - 39121)/257936
=0.0468

X2=Retained Earnings/Total Assets
=177909/257936
=0.6897

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(40097 - -594)/257936
=0.1578

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=306945.353/103374
=2.9693

X5=Revenue/Total Assets
=206099/257936
=0.799

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Chevron has a Altman Z-Score of 4.12 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Chevron  (NYSE:CVX) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Chevron Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Chevron's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Chevron Business Description

Chevron logo
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 3.1 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.
Executives
Bonner Eimear P officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Hewson Marillyn A director C/O CARPENTER TECHNOLOGY CORPORATION PO BOX 14662 READING PA 19612-4662
Inchausti David A officer: Vice Pres. and Comptroller 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Parfitt Colin E officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Morris Rhonda J officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Reed Debra L director 488 8TH AVENUE SAN DIEGO CA 92101
Umpleby Iii Donald J director 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Nelson Mark A officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Frank John director C/O OAKTREE CAPITAL MANAGEMENT 333 SOUTH GRAND 28TH FLOOR LOS ANGELES CA 90071
Austin Wanda M director 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Moyo Dambisa F director 10200 S. DEANZA BOULEVARD CUPERTINO CA 95014
Ourada Jeanette L officer: Vice Pres. and Comptroller 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Thulin Inge G director 1250 5TH AVENUE SOUTH NAPLES FL 34102
Cummings Alexander B Jr director
Huntsman Jon M Jr director 500 HUNTSMAN WAY SALT LAKE CITY UT 84108

Chevron Headlines

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