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Exxon Financial Ratios

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2011 Financial Ratios Current Ratio = 0.8 = 59,308/71,724 Quick Ratio = 0.6 = (59,308-26,073)/71,724 Long Term Debt to Equity = 1.0 = 9,322/9,547 Inventory Turnover = 33.7 = 467,029/13,852 Total Assets Turnover = 1.5 = 467,029/321,650 Accounts Receivable Turnover = 13.4 = 467,029/34,861 Average Collection Period = 27.2 = 34,861/(467,029/365) Gross Profit Margin = 1.0 = (467,029 – 10,572)/467,029 Net Profit Margin = 0.1 = 41,060/467,029 Return on Total Assets = 0.1 = 41,060/321,650 Return on Equity = 4.3 = 41,060/9,547 2012 Financial Ratios Current Ratio = 1.0 = 64,460/64,139 Quick Ratio = 0.8 = (64,460-14,542)/64,139 …show more content…

Its two largest divisions are Upstream and Downstream, which produce the majority of its revenue (“Summary annual report,” 2013). Its chemical division holds 12% of the relative market share and is primarily invested in research and development (R&D) (“Summary annual report,” 2013). Surging oil prices over the past several years has contributed to large profits for industry giants with refinery capabilities. ExxonMobil has recently seen a decline in revenue in its upstream division (“Summary annual report,” 2013). Currently, the chemical division is a “star,” while the upstream division is a question mark with the declines due to lower reserves and alternative fuels. The chemical division is still well behind the upstream division in revenues, but is the clear leader in industry growth rate and is continuing at a healthy pace. The corporate and financing sector is the clear dog, as it drains revenues and profits from the other

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The company’s Debt to Equity was 11.80 in 2006, even though it is projected to be 8.7. This means that the company is forecasted to have less debt in the future than it had in previous years. As well, the Net Worth to Total Assets was 8% in 2006, and is estimated to increase by 2%. This would result in a total of 10%, which is much lower compared to the industry average of 48%. The Times Interest Earned Ratio, is estimated to be 3, since it is projected to increase by 0.3.

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As a major oil & gas company, ExxonMobil operates in three market segments: upstream, downstream and chemicals. ExxonMobil 's mission is to be the premier petroleum and petrochemical company in the world. To deliver on that mission requires each of the three market segments, upstream, downstream and chemical, to be premier among their competition. Overall Corporate Strategy With relentless attention to the operational excellence, safe, reliable, efficient operations and reducing the risk by applying the highest operational standards is embedded in ExxonMobil 's culture.

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On the other hand, demand for oil is expected to grow at a robust pace next year as buyers such as China take advantage of weak pricing to increase their reserves. Hence, the probability that Exxon will benefit from a gradual uptick in oil prices is also present. Conclusion Exxon Mobil is being cautious and opportunistic at the same time. On one hand, the company is reducing costs across the board, while on the other it is also focusing on areas that could deliver growth.

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