Financial analysis

of ExxonMobil
2016-2018
Francisco Orta
Oksana Zakharova
Savvas Sapalidis
 List of contents
1. International activity and production
2. Balance Sheet
3. Income Statement
4. Cash Flow Statement
5. Liquidity ratios
6. Profitability ratios
7. Asset management ratios
8. Leverage ratios
9. Market ratios
10. Energy ratios
11. Sources
International activity and production
 Total assets -> positive
growth in 2017, slightly sank
in 2018
Current assets = high
liquidity assets
-> stable increase
Equity -> stable increase
Long-term debts ->
decrease in 2018
Income statement
Cash Flow Statement
 Current ratio = Current A /Current L
A good CR is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to
covers its debts, but it also may
indicate an inefficient use of cash and other short-term assets The Ratio of ExxonMobil is slightly below 1 (0,84).
We would expect to see a current ratio of at least 1 and that a current ratio of less than 1 would mean that net
working capital is negative.

Quick ratio = (Current A – Inventories) / Current L

The ideal quick ratio is considered to be 1:1, so that the firm is able to pay off all quick assets with no liquidity
problems, i.e. without selling fixed assets or investments. The ExxonMobil can pay off only half of the quick assets.
Relatively large inventories are often a sign of short-term trouble
The firm may have overestimated sales, and overbought or overproduced as a result
 Profitability
0.120

PM = Net income / Sales

0.100

0.080
ROA = Net income/Assets
0.060

0.040 ROE = Net income / Equity

0.020

0.000
BET = EBIT / Assets
2018 2017 2016

PM ROA ROE BEP

Year PM ROA ROE BEP

2018 0,075 0,060 0,105 0,092
2017 0,083 0,057 0,101 0,055
2016 0,039 0,024 0,045 0,025 ALL INITIAL FIGURES TAKEN IN MIL US$
ExxonMobil is liquid and profitable in 2018?
10% net profit margin is considered average. Our ratio is slightly beneath the average. A relatively high
profit margin is obviously desirable, because this situation corresponds to low expense ratios relative
to sales. However, other things are often not equal: For example, lowering sales price will usually
increase unit volume but will normally cause profit margins to shrink. Total profit (or, more importantly,
operating cash flow) may go up or down, so the fact that margins are smaller is not necessarily bad.
ROAs over 5% are generally considered good so that our ratio is even above the favorable average.is a
measure of how the shareholders fared during the year. Because benefiting shareholders is our goal,
ROE is, in an accounting sense, the true bottom-line measure of performance.
ROE is especially used for comparing the performance of companies in the same industry. As with
return on capital, a ROE is a measure of management's ability to generate income from the equity
available to it. ROEs of 15-20% are generally considered good. Our ratio is slightly below on the level of
10 %. Nevertheless, it was dramatically low in 2016 with just 4,5 %.
Our BEP ratio reflects that 9 % of the Earnings before income tax and interest are generated by total
assets possessed. Each dollar invested in assets generated 9% of the Earnings BIT.
Comparison and
benchmarking 2018
Leverage
ratios
Total Debt Ratio
  2014 2015 2016 2017 2018
349,4 336,75 330,31 348,69 346,19
[a] Total Assets 93 8 4 1 6

$
181,0 176,81 173,83 194,50 198,52
[b] Total Equity 64 0 0 0 8
0.43
Total Debt Ratio =
48% 47% 47% 44% 43%
([a]-[b])/[a]
Times Interest Earned
       
[c] Income before 51,63
21,966 7,969 18,674 30,953
tax 0
[d] Interest Expenses 286 311 453 601 766
51,91
[e] EBIT = [c]+[d] 6
22,277 8,422 19,275 31,719
242x
Interest Coverage 181.
71.6 18.6 32.1 41.4 182x
Ratio
Cash= Coverage
[e]/[d] 5 130x
65x
       
17,29 72x 68x 66x
[f] Depreciation 7 18,048
22,308 19,893 18,745 19X 32X 41X

69,21 2014 2015 2016 2017 2018

[g] EBITD = [e] + [f] 3 40,325
30,730 39,168 50,464
[h] Cash Coverage 242.
 Asset management ratios
87
Inventory Turnover 2014 2015 2016 2017 2018
[a] Costs of goods 74,96 75,78
sold 83,495 8 73,910 3 79,227
16,24 16,99
[b] Inventories
[c] Iventory Turnover
= [a]/[b]
Receivables Turnoever
16,678 5 15,080

5.0 4.6 4.9 4.5 4.2

2 18,958
75
[d] In days = 365/[c] 72.9 79.1 74.7 81.8 87.3

[e] Sales
367,64 239,8 200,62 237,1 279,33
7 54 8 62 2
27
3
[f] Trades 19,87 25,59
receivables 28,009 5 21,394 7 24,701
[g] Receivables
13.1 12.1 9.4 9.3 11.3

2
Turnover = [e]/[g]
Cash Coverage
$
[h] In days = 365/ [g] 27.8 30.2 39.0 39.4 32.3

[i] Total Assets 349,493 336,758 330,314 348,691 346,196

[j] Total Asset 1.1 0.7 0.6 0.7 0.8 0.8
Turnover = [e]/[i]
Market ratios
Market ratios (2)
 Energy ratios

P/R PLI PRR

9.00% 1817 17 200% 178%
7.69% 16
8.00% 16 150%
7.14% 101% 92%
14 100%
7.00% 6.25% 14 13 65%
5.88% 5.88% 50%
6.00% 12
5.00% 0%
10 2014 2015 2016 2017 2018
4.00% -50%
8
3.00% -100%
6
-150%
2.00% 4
-200% -215%
1.00% 2
-250%
0.00% 0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
 Sources
• ExxonMobil, 2018-Summary-Annual-Report
• ExxonMobil, 2018-Financial-and-Operating-Review
• https://corporate.exxonmobil.com/Investors/Annual-Report/Upstrea
m/Resources-and-proved-reserves#provedReserves
• https://corporate.exxonmobil.com/-/media/Global/Files/investor-rela
tions/annual-meeting-materials/financial-statements/2015-financial-s
tatements.pdf
• https://markets.businessinsider.com/stocks/xom/financials
• https://finance.yahoo.com/quote/XOM/balance-sheet/
• https://www.readyratios.com/sec/industry/13/