• Financial Highlights
• Management's Discussion and Analysis
  • Key Financial Results
  • Income by Major Operating Area
  • Business Environment and Outlook
  • Operating Developments
  • Results of Operations
  • Consolidated Statement of Income
  • Selected Operating Data
  • Liquidity and Capital Resources
  • Financial Ratios
  • Guarantees, Off-Balance-Sheet Arrangements and Contractual Obligations, and Other Contingencies
  • Financial and Derivative Instruments
  • Transactions with Related Parties
  • Litigation and Other Contingencies
  • Environmental Matters
  • Critical Accounting Estimates and Assumptions
  • New Accounting Standards
• Consolidated Financial Statements
• Notes to the Consolidated Financial Statements
• Five-Year Operating Summary
• Five-Year Financial Summary
• Supplemental Information on Oil and Gas Producing Activities

Financial Ratios

	At December 31
	2007	2006	2005
Current Ratio	1.2	1.3	1.4
Interest Coverage Ratio	69.2	53.5	47.5
Total Debt/Total Debt-Plus-Equity	8.6%	12.5%	17.0%

Current Ratio — current assets divided by current liabilities. The current ratio in all periods was adversely affected by the fact that Chevron's inventories are valued on a Last-In, First-Out basis. At year-end 2007, the book value of inventory was lower than replacement costs, based on average acquisition costs during the year, by approximately $7 billion.

Interest Coverage Ratio — income before income tax expense, plus interest and debt expense and amortization of capitalized interest, divided by before-tax interest costs. The company's interest coverage ratio was higher between 2007 and 2006 and between 2006 and 2005, primarily due to higher before-tax income and lower average debt balances in each of the subsequent years.

Debt Ratio — total debt as a percentage of total debt plus equity. The progressive decrease between 2005 and 2007, was due to lower average debt levels and higher stockholders' equity balances.