uploads/2015/01/cvx-bal-sheet.jpg

Chevron’s balance sheet suggests good financial health

By

Updated

Balance sheet

In this part of the series, we’ll take a deeper look at Chevron’s (CVX) balance sheet for the past couple of quarters.

Article continues below advertisement

Chevron’s assets

The company’s assets have grown from ~$248 billion in 3Q 2013 to ~$265 billion in 3Q 2014. Assets increased by ~$17 year-over-year (or YoY). Sequentially, Chevron’s assets grew by approximately $2 billion.

Cash and cash equivalents were ~$14 billion at the end of the quarter, approximately $3 billion lower than in 3Q 2013.

Chevron’s liabilities

Chevron’s total current liabilities in 3Q 2014 were ~$37 billion. Its total current assets were ~$47 billion. If we calculate the quick ratio, or current assets excluding inventory and current liabilities, we arrive at 1.07x. This represents good financial health, since ratios over 1 indicate that the company has sufficient cash to cover its short-term debts.

The company’s long-term liabilities have risen ~$3 billion since 3Q2013.

Chevron’s total equity has grown from ~$146 billion to ~$157 billion. In comparison, ExxonMobil’s (XOM) equity grew from ~$175 billion to ~$187 billion. BP PLC’s (BP) equity declined from ~$131 billion to ~$127 billion. Finally, Royal Dutch Shell’s (RDS.A) equity remained more or less the same at ~$180 billion during the same period. Both Exxon and Chevron are components of the Energy Select Sector SPDR ETF (XLE).

Advertisement

More From Market Realist