Financial Analysis Exxon Mobile

In: Business and Management

Submitted By jungamals
Words 3182
Pages 13
EXXON MOBIL

Financial Analysis

JUNE 2015

Prepared by:

Maria Karpowicz-Wójcik

Monika Tyburska

Executive Summary

This report was commissioned to analyze financial statements for years 2010- 2014 of Exxon Mobil. It presents overall review of this company’s history and business, as well as its strategies and mission. Additionally, this report presents an impact of Exxon Mobil on social and natural environment. Moreover it describes how the company communicates social and environmental issues.

In analytical part of the report, we examined income statement and balance sheet for the above mentioned years. We looked for trends and presented them in form of graphs. Furthermore, this report shows calculations of financial ratios such as:

• Profitability ratios

• Liquidity ratios

• Solvency ratios

It presents trends over time and our comments.

Exxon Mobil – the story of success

Exxon Mobil Corporation is a motor fuel brand. The history of the company begun in 1870, when John D. Rockefeller and his partners established Standard Oil Company. This company was very successful for thirty years and by the year 1878, it was controlling 95% of US the oil industry. Because of the public protest that took place in 1911, the Supreme Court of the United States decided to divide one big company into 34 small companies. Two of these companies finally became Exxon and Mobil. In 1998, these companies signed an agreement, which cost $73.7 billion, in order to merge and create a new company called Exxon Mobil Corporation. The merger was done on November 30, 1999. During these years it has evolved from a regional marketer to the largest petroleum and petrochemical enterprise and has become the largest company in the world[1].

Exxon is engaged…...

Similar Documents

Exxon/Mobile

...Exxon Mobil Corporation Exxon Mobil Corporation - Financial and Strategic Analysis Review Publication Date: 03-Aug-2012 Reference Code: GDGE1203FSA Company Snapshot Key Information Exxon Mobil Corporation, Key Information Web Address www.exxonmobil.com Financial year-end December Number of Employees 82,100 NYSE XOM Source : GlobalData Company Overview Exxon Mobil Corporation (ExxonMobil) is an integrated global oil and gas company. The company's operations include exploration and production of oil and gas; refining, transportation and marketing of oil and natural gas; and manufacture and sale of petroleum products. ExxonMobil also has interests in petrochemicals and electricity generation facilities. The company operates through three reportable business segments, namely, Upstream, Downstream and Chemical. It offers products and services under various brands such as Exxon, Esso and Mobil. ExxonMobil is headquartered in Texas, the US. ExxonMobil is expanding its operations and presence in unconventional gas resource assets. 9.75 4.37 26.59 11.03.00 15.06 0.02 Key Ratios Exxon Mobil Corporation, Key Ratios P/E EV/EBITDA Return on Equity (%) Debt/Equity Operating profit margin (%) Dividend Yield SWOT Analysis Exxon Mobil Corporation, SWOT Analysis Strengths Weaknesses Improvement in Financial Performance Extensive Research & Development Activities Geographical Diversification Pending Litigations Note: Above ratios are based on share price as of......

Words: 3690 - Pages: 15

Exxon-Mobil Merger Analysis

...Exxon Mobil Corporation Introduction Exxon Mobil Corporation is a multinational oil and gas company that is based inAmerica. It’s a descendant at of the Rockefellers standard oil company and it was formed in1999 from the merger of the Exxon and Mobil companies. It’s headquartered in Irving, Texas.The company is one of the world’s largest publicly traded companies and has been ranked thenumber one or number two for the last five years. By the end of the year 2007 the company’sreserves stood at 72 million oil equivalent barrels while its production rates were expected to lastfor more than 14 years (Hrebiniak & William, 1984). The company has 37 oil refineries in more than 21 countries constituting a combineddaily refinery of approximately 66.3 million barrels. Exxon Mobil is recognized as the world’slargest refineries and this title has been associated with the former standard oil since the incorporation in the 1870s. In addition to that the company is largest of the six recognized oil supermajors. Exxon Mobil owns hundreds of other similar subsidiaries including the imperial oillimited in Canada and the sea river maritime which is a petroleum shipping company.Functionally the company is organized into several global operating categories including the 2. 2upstream, down stream, chemical Exxon Mobil global services company, XTO and finally theimperial oil (Neil,1974). Many organizations experiences a lot of stresses as well as difficulty when it comes tocoping with change and......

Words: 3070 - Pages: 13

Exxon Mobile Financial Analysis

...S&P 500 Exxon Mobil’s (XOM) stock prices seem to follow the same trend line as the market. When market prices are high, Exxon’s stock prices are equally high, and when the market declines, so do the prices of Exxon stock. For the most part, Exxon’s stock follows the market trend. The difference between the market and Exxon’s prices seems to be that Exxon’s prices typically fall below the market trend line. Although Exxon’s prices range lower than the S&P over the six months studied from May 5, 2010 to November 5, 2010, Exxon’s stock prices clearly show a correlation to the market prices. With this correlation, Exxon’s prices ebb and flow with the market, but Exxon’s prices in the short-run versus longer periods of time seem to move up and down more vigorously where as the market remains more consistent on a short-term basis. See attached chart. Exxon Mobil is one company who over the past few years despite the recession has been able to post record profits. But, increasing sales and profitability is not always that easy. Despite having gross profits no less than $124,000,000 in 2009, Exxon actually shrank in 2009 versus 2007 and 2008. Exxon’s gross profit went from $171,000,000 in 2007 and ballooned to $188,000,000 in 2008 showing a growth change of +9.8%. While from 2008 to 2009, Exxon’s gross profits went from $188,000,000 to $124,000,000 shrinking nearly -34% from the previous year. While both 2007 and 2008 Exxon had a net income over $40,000,000, in 2009......

Words: 747 - Pages: 3

Financial Analysis

...to invent and an unceasing commitment to advance the way the world connects. Our communication solutions allow people, businesses and governments to be more connected and more mobile. Motorola (NYSE: MOT) has been at the forefront of communication inventions and innovations for more than 80 years. We have achieved extraordinary accomplishments along the way – such as making the equipment that carried the first words from the moon and leading the cellular communication revolution with the development of the world’s first handheld cellular phone, the DynaTAC 8000x. More recently, Motorola has staked out a position at the forefront of 4G telecommunications. We hold a market-leading position in WiMAX deployments around the world. In 2008, we demonstrated the world’s first WiMAX 802.16e mobile handoff and the industry's first over-the-air data sessions in the 700 MHz spectrum using the Long Term Evolution standard, the next evolution of mobile broadband. With the rapid convergence of fixed and mobile broadband Internet and the growing demand for next-generation mobile communication solutions, our mission is to lead the next wave of innovative products that meet the expanding needs of our customers around the world. The trends toward media mobility, ubiquitous connectivity, and wireless flexibility coupled with mobile lifestyles and business continue to expand. Today, Motorola has a portfolio of technologies, solutions and services – including wireless handsets, wireless accessories,......

Words: 94655 - Pages: 379

Exxon Mobile Analysis

...ExxonMobil Analysis Indiana Wesleyan University ExxonMobil Analysis Rex W. Tillerson, Chairman and CEO of ExxonMobil stated in 2012s summary annual report “unrelenting focus on creating long-term value is the commitment we make to all who place their trust in ExxonMobil by investing in our stock… our unique competitive advantages and steadfast commitment to ethical behavior, safe operations, and good corporate citizenship enable us to deliver long-term value to our shareholders while helping to supply the world’s growing demand for energy” (pg. 5). Exxon continues to deliver “superior results” to its shareholders. As I looked over Exxon’s summary annual report for 2011 and 2012, it was clear that the majority of the oil company’s assets were tangible. According to Investopia.com (2014) tangible assets are “assets that have a physical form…they include both fixed assets, such as machinery, buildings and land, and current assets, such as inventory.” Both the 2011 and 2012 summary annual reports have the majority of its tangible assets in its property, plant and equipment portion of the balance sheet. Exxon Mobil Corp.'s current, quick, and cash ratios improved from 2011 to 2012. The company’s Net Income was $41,060, 000 (2011) to $44,880, 000 (2012), which is a positive move and an increase of $3,820,000 or a little of 9%. Cash flows for the same period moved negatively, about $11,305,000 or a little over 65%. The cash flow statement is broken down into three different......

Words: 654 - Pages: 3

Exxon Mobile

...* Intro * A strategic planning initiative for the organization selected for the Week 2 assignment ExxonMobil, an American multinational oil and gas corporation; whose headquarters is in Irving, Texas which is North of Dallas in the United States of America. It is the descendant of John D. Rockefeller’s Standard Oil Company, and was established on November 30, 1999, when Exxon and Mobil merged together. As one of the largest oil and gas corporations to date, with a daily production of $3.921 million BOE, in 2008 ExxonMobil was 3% of world production, which serves as less than their competition. The company’s strategic thinking is simple. Keeping the promise of being the premier petroleum and petrochemical company in the world, they must commit to providing superior financial and operating results while standing by the company’s ethical standards of business conduct. By doing so, the organization shall create the foundation in those commitments to serve those they interact with. The strategic planning, which should align with the company’s overall vision which is to become the center of excellence for all key water related technologies, especially to those closest to the petroleum and municipal sectors. Next step, deliver the business strategy which shows how the organization proves their superior excellence within daily operations, cash flow, and creating long-term shareholder value. By continuously applying this business strategy, ExxonMobil centers the......

Words: 252 - Pages: 2

Exxon Mobile

...In depth look into Exxon Mobil Chris Maag Abstract The basis of this paper is to examine the past and most recent development of Exxon Mobil. This research will highlight key study points including history, supply and demand, price elasticity, cost of production, competitive advantages, entry barrier, product substitution, market share and structure. Various information used for this study are company history statements, SWOT analysis, and financial reports. The story of this giant oil company has become more intriguing with the every increasing demand for oil, oil-powered products, driving global production nearly to 5.3 million barrels a day. This paper will investigate alternate energy and how the world is slowly gravitating towards that shift. Company Introduction In our economic day and age, there is a high reliance of oil and gas in everything used in daily task. From cooking, to driving cars and keeping warm during the winter season, it is one of the essential necessities in current modern time that keeps the human race thriving. It is used in the production of certain home and household materials. Gas is used in producing fertilizers and a wide range of industrial products, including plastics and polymers, textiles, paints and dyes. In this study there will be a focus on one-of-world’s largest oil companies – Exxon Mobil and examine the corporations’ economic value. What is Exxon Mobil? Exxon Mobil, as we have stated previously is one of the largest......

Words: 3117 - Pages: 13

Resumen Ejecutivo Exxon Mobile

...Resumen Ejecutivo Principios de Contabilidad ACC/208 16 de junio de 2012 Oscar Rosario Figueroa * Resumen Ejecutivo * EXXON MOBILE * ExxonMobil Corporation es una empresa petrolera estadounidense. Sus actividades se extienden por más de 40 países de todo el mundo e incluyen, entre otras, la explotación, elaboración y comercialización de productos petroleros y gas natural, así como la fabricación de productos químicos, plásticos y fertilizantes. * Historia: Exxon Mobil surgió de la fusión de las herederas de la Standard Oil perteneciente a John D. Rockefeller, creada en 1870. Para 1939 esta empresa es la más grande el mundo, y solamente tiene como rival a la SHELL que extrae petróleo de México. Exxon Mobil Corporation se formó en 1999 gracias a la fusión de dos grandes compañías petroleras, Exxon y Mobil. En 1998, Exxon y Mobil firmaron en EE.UU. un acuerdo por U$73,7 billones para fusionarse y formar una nueva empresa llamada Exxon Mobil Corporation, la empresa más grande del planeta. Tras las correspondientes aprobaciones accionarias, la fusión se completó el 30 de noviembre de 1999. La fusión de Exxon y Mobil fue única en la historia de Estados Unidos, ya que reunió las dos mayores empresas del conglomerado Standard Oil de John D. Rockefeller; la Standard Oil Company de Nueva Jersey (Exxon) y la Standard Oil Company de Nueva York ( Mobil), que habían sido separadas forzosamente por orden del Gobierno norteamericano casi 100 años antes. Como...

Words: 1220 - Pages: 5

Exxon Mobile Market Analysis

...Exxon Mobil is an oil and gas company that was founded in 1999; a merger of Exxon and Mobil. It is a Descendant of John D Rockefeller’s Standard Oil Company (Exxon Mobil). Exxon is a US based company with its head quarters located in Irving Texas, even though it is considered an international corporation. Exxon Mobil is considered the world’s largest publicly traded international oil and gas company, and has even been ranked as the number one traded company in the world. Currently Exxon is traded on the New York Stock Exchange, is a Dow Jones Industrial Average Component as well as a S&P 500 Component (Exxon Mobil). When it comes to oil, Exxon Mobil does it all. With 102,700 employees, Exxon has broken its operations into two main categories Upstream and Downstream (Yahoo Finance). Exxon does partake in other types of operations such as it operates coal mines and has its own IT, real estate, help center, as well as an engineering and chemical research and development department which fall under the umbrella of Exxon Mobil Corp (Exxon Mobil). Exxon’s two main divisions are incredibly important in keeping its industry advantage, where the Upstream sector is responsible for the exploration of new resources in an efficient and economical manner. The Upstream sector also extracts resources and then deals with the wholesale and distribution of the minerals. The Down Stream operations include refining the mineral and managing retail operations and marketing. Due to Exxon’s vast...

Words: 958 - Pages: 4

A Look at Cost of Capital Decisions at Exxon Mobile

...A Look at Cost of Capital Decisions at Exxon Mobile American Military University Abstract This paper discusses and analyses the cost of capital decisions Exxon Mobile faces after its acquisition of XTO Energy. The advantages and disadvantages of both single company – wide cost of capital and divisional costs of capital are detailed. Finally, the method of estimating the costs of capital and determining how Exxon Mobile could best evaluate the weights to use for various sources of capital is discussed. A Look at Cost of Capital Decisions at Exxon Mobile Due to its recent acquisition of XTO Energy, Exxon Mobile must reevaluate how it determines the proper cost of capital for use in making corporate investments across the company’s many business units. Essentially, Exxon Mobile has two choices, it can either use a single company – wide cost of capital for analyzing capital expenditures or it can evaluate the divisional costs of capital. Both of these two methods offer their own advantages and disadvantages in analyzing capital expenditures, however the divisional weighted average cost of capital is the best choice for Exxon Mobile due to its recent acquisition of XTO energy. The consequences of Exxon Mobile using a company - wide cost of capital are that is could lead to the overinvestment or underinvestment into divisions where the beta varies widely from the company beta (Hung Il, 2008). Companies such as Exxon Mobile have many different divisions that are separated......

Words: 880 - Pages: 4

Chevron Financial Analysis

...Analysis of Chevron Introduction Chevron Corporation is a multinational energy company that is based in the United States. It is the second largest U.S oil company after Exxon Mobil Corporation, and is also the fourth largest oil company in the world. Chevrons mission statement is “At the heart of The Chevron Way is our vision… to be the global energy company most admired for its people, partnership and performance.” Chevron was first founded in 1876 as Pacific Coast Oil Company in California. At that time oil started to gain a market and have a higher value. Pacific expanded dramatically after the discovery of oil in Saudi Arabia. Twenty years later, the company merged with Iowa Standard, forming Standard Oil California (Socal) as the new company. Socal successfully gained a market in the United States and Asia. In the 1970’s, the rise of the Organization of Petroleum Exporting Countries (OPEC) cast Socal out of the Middle East region, which caused a great loss to the company. In 1984 Socal purchased Gulf Corporation for $13.2 million, which, at the time, was the largest oil producer and distributer in the Middle East. Acquiring Gulf Corporation doubled Socal’s oil and gas reserves. As a result it generated great profit to the company by the late 1990’s because of the increase of gasoline prices. Socal also changed its name to Chevron during that period of time. Chevron grew and expanded because of the amount of subsidies and mergers that it gained from every region they......

Words: 1964 - Pages: 8

Stock Analysis of Exxon Mobil

...STOCK ANALYSIS REPORT - Exxon Mobil Corporation (XOM) –August 15th , 2011 [pic] Industry: Oil and Gas Operations Sector: Energy Recommendation: SELL Price: $74.29 (as of  August 15th 2011, 4:00pm ET) Intrinsic Value: $52.10 or 42.6% overvalued Fundamentals Grade: A Investment Style: Large Cap Blend CORPORATE INFORMATION [pic] Location: 5959 Las Colinas Boulevard Irving, TX 75039 Phone: 972-4441000 Fax: 972-4441348 Web Site: http://www.exxonmobil.com/ Employees: 83,000 Exchange: NYSE BUSINESS SUMMARY Exxon Mobil Corporation (Exxon Mobil) through its divisions and affiliates is engaged in exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. • ExxonMobil is the largest integrated oil company, with operations in over 200 countries. This globally diversified enterprise produces superior returns in its business segments when compared to other major oil and gas companies. • Exxon has a strong balance sheet with a cash position of approximately $13B and 0.07 Debt-to equity. Exxon has the liquidity and credit to invest in high return projects around the world. • Prices for oil and gas are expected to rise in the foreseeable future. Emerging market growth and increasing need for energy will place upward pressure on prices. Exxon will benefit as the world’s largest oil and gas company (by reserves, excluding national oil......

Words: 1803 - Pages: 8

Critical Analysis of Csr at Exxon-Mobil

...is favorable to their financial success. Hence, although they behave more responsible to some extent, it would be wrong to claim that they are more ethical and moral. This is evident from often present manipulation of CSR actions and the fact that a lot of CSR rhetoric is geared towards advertisement purposes. As some companies devote more resources to the external communication of CSR practices, this creates an image that they are more responsible. In order to get the insight into the real role of CSR in the industry, a critical analysis of the CSR strategy of Exxon is presented below. Exxon is a major global oil multinationals that have significant influence on the oil industry and is a trend and standard setter. The concept of CSR itself is divided into two main spheres – macro and micro. Former deals with more global topics, mainly the company’s stance over the issue of climate change. Later is focused more on social aspects of the CSR, such as community development, relations with the governments etc. Exxon-Mobil Company Overview Exxon-Mobil is one of the world's largest companies and is currently ranked no.2 in the Fortune 500 global companies. The sheer size of the company is indicated by its financial flows. Despite the recession and drop in oil prices -- ranging from more than $146 a barrel to around $45 a barrel -- Exxon pulled in $443 billion in revenues and $45 billion in earnings in 2009. With more than 100,000 employees, Exxon-Mobil conducts......

Words: 1634 - Pages: 7

Exxon Mobile Case

...Exxon Mobil is the largest U.S. Company in the world and it participates in three very profitable industries: Mining/Crude-Oil industry, Petroleum Refining, and Chemicals. Exxon Mobil is a multinational oil and gas corporation. They have evolved over the past 125 years as a regional marketer of kerosene in the U.S. to the largest publicly traded petroleum and petrochemical enterprise in the world. Today Exxon Mobil operates in most of the world's countries and is best known by their familiar brand names: Exxon, Esso and Mobil. They make the products that drive modern transportation, power cities, lubricate industry and provide petrochemical building blocks that lead to thousands of consumer goods. Exxon Mobil was founded by John Rockefeller and his associates in 1870 originally named standard oil company. By 1882 Standard Oil Company was renamed Standard Oil Company of New Jersey (Jersey Standard) and the Standard Oil Company of New York (Socony). Standard Oil broke up into 34 unrelated companies after a U.S. Supreme Court ruling, including Jersey Standard, Socony, and Vacuum Oil. After 100 years in business the company went through yet another name change to Mobil Oil Corporation. In 1972 Jersey Standard becomes Exxon Corporation. In November 30, 1999, Exxon and Mobil join together to become Exxon Mobil Corporation. The merger increased their ability to be a more effective global competitor in the volatile economy and in an industry that is very competitive. In 2005 both......

Words: 1562 - Pages: 7

Exxon Mobil Analysis

...The weights of debt was used was 51% whereas the weights of equity used was 49%. Comparing this to the market value the weight of debt being nearly 3% while equity overshadows at the 97%. Although the book and market weights differ substantially their WACC doesn’t vary much; the book value cost of capital being 3.8% and the market value being 4%.Should Exxon take on project A, with a NPV of over 182 million and an IRR of about 26%, we would agree to definitely accept. But , you really cant say that without doing sensitivity analysis. We choose to do the analysis on the cost of capital because that’s what I feel could fluctuate the most. Even at rates of 3% to 6%. The NPV didn’t move much which allows me to assume this is a pretty safe project for the company to take on. Rf page http://finance.yahoo.com/bonds/composite_bond_rates http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/ http://www.dividendgrowthinvestor.com/2011/06/exxon-mobil-xom-dividend-stock-analysis.html http://finance.yahoo.com/bonds/composite_bond_rates , AAA corporate yeild , 10 year Treasury Yeild and Treasury Yeild , Exxon Beta http://finance.yahoo.com/q?s=%5EGSPC S & P 500 Yeild http://quicktake.morningstar.com/StockNet/bonds.aspx?Symbol=XOM&Country=USA bond shares outstanding and price !!!...

Words: 319 - Pages: 2