Chevron 2011 4Q financial analysis
|2012 March 13||Posted by admin under 2011 4Q, Chevron, Energy, USA|
Companies 4Q results are negative. Although revenue has increased by 12% if comparing with 2010 4Q from 51,9 bn.$ to 58,0 bn.$ but compared to peak 2Q 66,7 bn.$ revenue has decreased by -13%. Net Income before depreciation has decreased by -3% even when comparing with 2010 4Q. If compared with last quarter it decreased by almost -24% from 11 bn.$. Company explains that decrease is driven by decrease in industry refining margin. In general companies results are negative.
Equity level has increase a little bit from 57% to 58% due to part of generated Net income left in the company. ROE and ROA ratios has dropped a lot at Q4. ROE from almost 26% to 17% ROA from 15% to 10%. Hopefully it is not long term trend.
Inventory level 5,5 bn.$ turnover 9 days. Account payable 21,8$ turnover 34 days. Both in line.
Generated Net Income before Depreciation is mostly used for investments into long term asset. In total at Y2010 long term investments reach 32 bn.$ or 82% out of generated 39 bn.$ Net Income before Depreciation. Part of long term investments was financed by long term liability growth, a specially at Q4 +4 bn.$. Cange in Equity is quit balanced. At Y2011 -11 bn.$ or 28% of generated Net Income before Depreciation. In general companies balance structure is acceptable.
|Common Stocks||17,0 bn.$||1,981 bn.||8,6 $|
|+ Retained earnings||104,4 bn.$||+ 52,7 $||61,3 $
|+ 1 year Net income before Depreciation||39,8 bn.$||+ 20,1 $||81,4 $
Companies share basic value is ~61$. Current market price is 110$ which shows that market is paying 49$ more or 2,4 years of Net income before Depreciation earnings. Share profitability (share market price/Net income before Depreciation) is 18%.
Company at the moment pays 3,24$/share annual dividends (0,81$/quarter) before tax or 2,9% investment yield. Since profit shows decrease in past few quarters predicted future dividend level should stay the same or even decrease a bit if profit decrease will continue for longer time.
Analysis source: Chevron 2011 4Q 10-K financial statements
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