Trend Analysis Of The Balance Sheet Of Chevron Corporation

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Table of Contents

Summary of Chevron Corporation 2
Trend Analysis of Income Statement 2 Trend Analysis of the Balance Sheet…………………………………………………………………………………………………….4
Discussion of Ratios and comparison 6
Appendix 8
Calculation of Ratios…………………………………………………………………………………………………………… 9
Annual Income Statement of Chevron Corporation of last five years 13
Annual Balance Sheet of Chevron Corporation of last five years ...16

Financial Analysis Project
Chevron Corporation (NYS: CVX)
Business Summary
Chevron is engaged in petroleum operations, chemicals operations, mining activities, power generation and energy services. Co.'s upstream operations include exploring, developing and producing crude oil and natural gas, and processing, liquefaction, transportation and regasification associated with liquefied natural gas. Co.'s downstream operations include refining crude oil into petroleum products, and manufactures and markets commodity petrochemicals, plastics for industrial uses and fuel and lubricant additives. At Dec 31 2012, Co. had net proved reserves of 6.48 billion barrels of crude oil, condensate, natural gas liquids and synthetic oil, and 29.20 trillion cubic feet of natural gas. Chevron is engaged in petroleum operations, chemicals operations, mining activities, power generation and energy services. Chevron Energy Solutions (CES) - CES is a wholly owned subsidiary that develops and builds sustainable energy projects.
Trend Analysis of Income statement over a five year period
Chevron Corporation (NYS: CVX)
Here the Base year is 2008
So trend percentage is calculated as = current year/ base year

2012 ($ mn)
2011
($ mn)
2010
($ mn)
2009
($ mn)
2008
($ mn)
Net Sales
241,909
253,706
204,928
171,636
273,005
Trend percentage(%)
88.60973

92.9309

75.06383

62.86918

100

COGS
140,766

149,923

116,467

99,653

171,397

Trend percentage(%)
82.12863

87.47119

67.9516

58.14162

100
Gross Profit
101,143
103,783

88,461

71,983

101,608
Trend percentage(%)
99.54236

102.1406

87.06106

70.84383

100
Operating Income
65,160
69,223
56,210
42,016
71,285
Trend percentage(%)
91.40773

97.10739

78.85249

58.94087

100

Low figures for Sales and COGS for 2012 indicates that Chevron net income is less which is evident in the Income statement ($26,336 for 2012 versus $ 27,008 for 2011). That may be great for paying less tax, but it means the Chevron doesn't make as much money, so sales costs should be kept down, to increase profits.
Chevron’s gross margin for 2012 decreased, thus Chevron may be using more expensive, materials to make the goods. Lower prices attract new customers, which may eventually raise profit margins.
The declining Operating income of Chevron for 2012 shows that there will be less money for owners, expansion, debt reduction, or anything else management hopes to achieve. This is one of the reasons that it is so closely watched by lenders and shareholders.

Trend Analysis of the Balance Sheet over a Five Year period
Base Year is 2008

2012
2011
2010
2009
2008
Cash
20,939
15,864
14,060
8,716
9,347
Trend percentage (%)
224.0184

169.7229

150.4226

93.24917

100

Accounts receivables
20,997
21,793
20,759
17,703
15,856
Trend percentage (%)
132.4231

137.4432

130.922

111.6486

100

Inventories
6,144
5,543
5,493
5,529
6,854
Trend percentage (%)
89.64109

80.87248

80.14298

80.66822

100

Working capital
21,508

19,634

19,829

11,005

4,447

Trend percentage (%)
483.6519

441.5111

445.8961

247.4702

100

Total current assets
55,720
53,234
48,841
37,216
36,470
Trend percentage (%)
153

146

134

102

100
Total assets
232,982
209,474
184,769
164,621
161,165
Trend percentage (%)
144.5612

129.9749

114.6459

102.1444

100

Total current liabilities
34,212
33,600
29,012
26,211
32,023
Trend percentage (%)
107

105

91

82

100
Total long term liabilities
11,966
9,684
11,003
9,829
5,742
Trend percentage (%)
208.3943

168.652

191.6231

171.1773

100

Current liabilities combined
6,086
4,101
5,636
5,705
1,221
Show More

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