Exxon Financial Statements and Financial Ratios Analyzed from 2015 to 2019
Hey All,
Thanks for visiting my Exxon Financial Report page. On this page, you will be able to find preliminary information about Exxon's current financial performance as well as some historical track records and trends.
https://youtu.be/bTI_3YH-hnYFor a more detailed examination of Exxon's financial performance, please check out the "Financial Report". In this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:
- Summarized income statement for the last 5 years.
- Summarized balance sheet for the last 5 years.
- Summary analysis by myself of important income statement, balance sheet, and financial ratio trends and other happenings.
- Five year’s worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is were I use plain English to explain concepts.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Sincerely,
Paul Borosky, MBA.
PDF/Downloadable Version
- Free Bonus Downloads: Annual Statements for the Last Five Years (10k reports)!
Sample Financial Report
Exxon: Brief Summary
Exxon Mobil Corporation has its headquarters located at 5959 Las Colinas Boulevard in Irving, Texas. The company competes in the oil and gas integrated industry, specifically in the energy section. At present, the organization has approximately 75,000 employees. The current CEO is Darren Woods.
From a financial perspective, the organization's beta is 1.27. This indicates that the company is moderately riskier as compared to the overall market. Their market At present is approximately $192 billion. The stock price for the organization has fluctuated between $30.11 to $83.49 over the last 52 weeks.
Exxon Financial Report Sources
“Exxon 2019 Company Analysis: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA. and owner of Quality Business Plan. In this book, the author selected Exxon's 2019 10k, 2017 10k annual report, 2016 10k annual report, 2015 10k annual report, and Exxon's 2019 10k annual report as the basis for information gathering.
Section 1: Exxon Income Statement Analyzed 2015 to 2019
In this section, I walk through a broad definition as to what an income statement is and why it is important. From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail. After each line item is defined and discussed, I finally offer a summary analysis of EXXON’s important income statement line item trends from 2015 to 2019, in most cases.
Exxon Revenue Growth.
Exxon's revenues ended 2015 at approximately $268 billion. Over the next several years, the revenues would peak at $290 billion in 2018. As for 2019, revenues did fall to approximately $264 billion. Their average growth over the last five years with approximately 1.2%. Fortunately for Exxon, entering the energy sector does take significant capital. From this, new competition entering the marketplace is unlikely. However, with alternative sources of energy continually being invested, long-term revenue growth may be unlikely for the organization.
Exxon Research and development.
Exxon's research and development into 2015 at one $0.5 billion. As of 2019, the research and development budget fell to 1.2 billion. Without continually exploring new crude oil, the organization may face a significant shortage of supplies over the long-term. Especially when competitors, such as Saudi Arabia, have seemingly endless supplies with little need for exploration.
Exxon Income Statement 2019 |
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| Column1 | 2019 | 2018 | 2017 | 2016 | 2015 |
| Revenues | 264,938 | 290,212 | 244,363 | 208,114 | 268,882 |
| COGS | 180,627 | 192,854 | 160,907 | 134,619 | 165,590 |
| Gross Profit | 84,311 | 97,358 | 83,456 | 73,495 | 103,292 |
| SG&A | 11,398 | 11,480 | 10,649 | 10,443 | 11,501 |
| Depreciation | 18,998 | 18,745 | 19,893 | 22,308 | 18,048 |
| R & D | 1,269 | 1,466 | 1,790 | 1,467 | 1,523 |
| Other | 32,663 | 30,104 | 29,020 | 27,265 | |
| Operating Expenses | 244,882 | 259,259 | 225,689 | 200,145 | 246,916 |
| EBIT | 244,052 | 31,719 | 19,275 | 8,422 | 22,277 |
| Other Income | - | - | - | - | - |
| Interest Expense | 830 | 766 | 601 | 453 | 311 |
| EBT | 20,056 | 30,953 | 18,674 | 7,969 | 21,966 |
| Taxes | 5,282 | 9,532 | (1,174) | (406) | 5,415 |
| Net Income | 14,340 | 20,840 | 19,710 | 7,840 | 16,150 |
Section 2: Exxon Balance Sheet Analyzed from 2015 to 2019
For Exxon's balance sheet, I again go through each important line item from the balance sheet. In reviewing each line item, I will define Exxon’s balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2019. Next, I then offer an analysis of Exxon’s balance sheet important line items.
Exxon Cash Position.
Exxon ended 2015 with approximately $3.7 billion in the bank. Over the next several years, their cash position would fall to approximately $3.1 billion. From an investor's perspective, the reduction in the cash position itself is not a huge alarm. However, close attention should be paid to their current ratio. If the current ratio starts to fall well below one, then the cash position becomes significant.
Exxon Long-term Debt.
In 2015, Exxon ended with approximately $19 billion in debt. In the next five years, their debt position would increase substantially to $26.3 billion. For a mature company, increased debt is often a strategy embraced by executives who wish to drive up there return on equity. Unfortunately, this practice also leads to elevated risk for the entity.
Exxon Summary Balance Sheet 2019 |
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| Column1 | 2019 | 2018 | 2017 | 2016 | 2015 |
| Cash | 3,089 | 3,042 | 3,177 | 3,657 | 3,705 |
| Short Term Investment | - | - | - | - | |
| Account Receivable | 26,966 | 65,491 | 64,757 | 56,496 | 54,120 |
| Inventory | 18,528 | 18,958 | 16,992 | 15,080 | 16,245 |
| Other | |||||
| Current Assets | 50,052 | 47,973 | 47,134 | 41,416 | 42,623 |
| Net PPE | 253,018 | 247,101 | 252,630 | 244,224 | 251,605 |
| Goodwill | - | - | - | - | - |
| Other | - | - | - | - | - |
| Total Assets | 362,597 | 346,196 | 348,691 | 330,314 | 336,758 |
| Accounts Payable | 20,578 | 37,268 | 36,796 | 31,193 | 32,412 |
| Accrued Expense | - | - | - | - | - |
| Accrued Taxes | 1,580 | 2,612 | 3,045 | 2,615 | 2,802 |
| Notes Payable | 20,578 | 17,258 | 17,930 | 13,830 | 18,762 |
| LT Debt - Current | - | - | - | - | - |
| Other | - | - | - | - | - |
| Total Current Liabilities | 63,989 | 57,138 | 57,771 | 47,638 | 53,976 |
| LT Debt | 26,342 | 20,538 | 24,406 | 28,932 | 19,925 |
| Other | |||||
| Total Liabilities | 163,659 | 147,668 | 154,191 | 156,484 | 159,948 |
| Common Stock | 15,637 | 15,258 | 14,656 | 12,157 | 11,612 |
| Treasury | 225,835 | 225,553 | 225,246 | 22,239 | 23,511 |
| Retained Earnings | 421,341 | 421,653 | 414,540 | 407,831 | 412,444 |
| Other | - | - | - | - | - |
| Total Equity | 198,938 | 198,528 | 194,500 | 173,830 | 176,810 |
| Total Equity & Liability | 362,597 | 346,196 | 348,691 | 330,314 | 336,758 |
Section 3: Exxon Financial Ratios Analyzed from 2015 to 2019
For this final section, I have chosen about 16 different financial ratios to calculate for Exxon from 2015 to 2019. I also review some important Exxon's financial ratios. I first start with defining the financial ratio. Next, I supply the financial formulas for calculating the specific ratio. Finally, I offer a brief analysis of important financial ratios.
Exxon Current Ratio.
Exxon's current ratio for 2019 was .78. In 2015, their current ratio was .79. This indicates that the company has optimized and is currently exploiting specific cash and other capital budgeting strategies that are allowing the firm to operate with minimal or at least below-average current asset position.
Exxon Total Asset Turnover.
Exxon’s total asset turnover ended in 2015 at .8. Over the next several years, ending in 2018, their total at asset turnover increased to .84. This shows that management was increasingly improving their usage of assets. Unfortunately, in 2019, the total asset turnover fell to 2.73. Not only does this show inconsistencies with asset usage, but it also indicates that the organization has yet to find a working business model to exploit assets for the organization optimally.
Exxon Return on Equity.
Exxon’s return on equity ended in 2015 at 9.1%. In the next few years, the company would grow its return on equity to 10.5% in 2018. As for 2019, the return on equity would fall back to approximately 7.2%. In this same timeframe, the company has taken a significant amount of debt. When this happens, the return on equity for an organization often increases substantially. With additional debt and lower return on equity, investors should be cautious about the overall expected growth opportunities for the organization.
Exxon Debt ratio.
Exxon ended 2015 with a debt ratio of 5.9%. Over the next several years, their debt ratio would climb to 7.2%. This elevated debt taken on as compared to equity increases the likelihood of insolvency over the long-term. Further, the company is not even enjoying the benefits of additional debt, which are elevated return on equity ratios. This indicates that the company may not be managing their assets optimally. Further exploration of the company’s financials should be done to determine why the unusual relationship is present between lower return on equity and higher debt accumulation.
Exxon Liquidity Ratios 2019 |
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| Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
| Current Ratio | 0.78 | 0.84 | |||
| Cash Ratio | 0.05 | 0.05 | |||
| Quick Ratio | 0.49 | 0.51 | |||
| Net Working Capital | 26,425 | 47,611 | |||
Exxon Asset Utilization 2019 |
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| Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
| Total Asset Turnover | 0.73 | 0.84 | |||
| Fixed Asset Turnover | 1.05 | 1.17 | |||
| Days Sales Outstanding | 37.15 | 82.37 | |||
| Inventory Turnover | 14.30 | 15.31 | |||
| Accounts Receivable Turnover | 9.82 | 4.43 | |||
| Working Capital Turnover | 10.03 | 6.10 | |||
| AP Turnover | 12.87 | 7.79 | |||
| Average Days Inventory | 0.04 | 0.04 | |||
| Average Days Payable | 0.04 | 0.02 | |||
Exxon Profitability Ratios 2019 |
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| Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
| Return on Assets | 3.95% | 6.02% | |||
| Return on Equity | 7.21% | 10.50% | |||
| Net Profit Margin | 5.41% | 7.18% | |||
| Gross Profit Margin | 31.82% | 33.55% | |||
| Operating Profit Margin | 92.12% | 10.93% | |||
| Basic Earning Power | 67.31% | 9.16% | |||
| ROCE | 81.73% | 10.97% | |||
| Capital Employed | 298,608 | 289,058 | |||
| ROIC | 64.33% | 7.45% | |||
Exxon Long-term Debt Ratios 2019 |
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| Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
| Debt Ratio | 7.26% | 5.93% | |||
| Debt/Equity | 13.24% | 10.35% | |||
| Times Interest Earned | 294.04 | 41.41 | |||