A Ratio Analysis Report on Chevron Corporation

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A Ratio Analysis Report on Chevron Corporation
By Brandon Dickerson

Q1. When did the company begin operating and where are its major locations? Chevron Corporation is based in San Ramon, California, but has offices and does business in over a 100 countries. Their roots are traced back to an oil discovery at Pico Canyon, Ca in 1879 that led to the formation of Pacific Coast Oil Co. The company later became Standard Oil Co. of California and adopted the name Chevron in 1984 when it merged with Gulf Oil, the largest merge in U.S. history at the time. Since then Chevron has acquired Texaco, Unocal, and Philips on the chemical side of operations. Q2. What is the size of the company?

Chevron has 65,000 employees working worldwide. They are the “second-largest integrated energy company in the United States and among the largest corporations in the world, based on market capitalization as of December 31, 2007” (Company Fact Sheet). They are ranked 5th in the world with a market capitalization of 196.2 billion. In 2007 Chevron did $214.1 billion in sales revenue making $18.7 billion in net income or $8.77 earnings per share diluted. Their cash dividends equaled $2.26 per share making a total stockholder return of 30.5%. Q3. What are its major products or services?

Chevron’s petroleum operations include the exploration, development, and production of crude oil and natural gas. Their refineries turn crude oil into finished petroleum products. In 2007, Chevron produced 2.62 million barrels a day and had a refinery capacity equivalent to 2 million barrels of oil per day. Chevron transports the crude oil/ natural gas by pipeline, ship, truck and rail car. On the chemical side of operations they manufacture and market petro chemical industrial plastics, fuel, and lubricant oil additives. Q4. What is the company’s industry ranking?

According to the S&P 500, Chevron is ranked second in the energy industry. They are also the #3 company in Fortune 500’s top...
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