Company Overview: Chevron

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Introduction Chevron is a multinational company whose primary business involves the exploration for, extraction of and retail of hydrocarbon products. The company trades on the New York Stock Exchange under the ticker symbol CVX. Its market cap of $226 billion makes it one of the largest companies in the world by that measure. Chevron has sales of $241.9 billion, net income of $26.18 billion and with a beta of 0.80 is a fairly low-risk investment (MSN Moneycentral, 2013). This paper focuses on a financial analysis of Chevron from the perspective of a potential creditor. The issue surrounds primarily the creditworthiness of Chevron rather than the type of credit that would be issued. Specifically, the issue is whether "we" would lend Chevron 10% of its net assets. The net assets for Chevron are $209.474 billion, so the amount in question is $20.9 billion in new debt. The report will first analyze the financial statements of Chevron in general terms, focusing on trends and ratios, and drawing conclusions about the overall financial health of the company based on that analysis. The second part of the paper will outline some of the criteria that a lending institution would have for lending to a company, and then that criteria will be applied to Chevron specifically. The general conditions in the global hydrocarbon business are positive, reflecting a combination of factors. There are more people in this world than ever before, more people have achieved at least a middle class
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