Exxon Mobil Financial Anaysis

Topics: Balance sheet, ExxonMobil, Asset Pages: 17 (5237 words) Published: October 14, 2011
Table of Contents
1.2Corporate Background1
c.Target market3
d.Competitive environment3
2.Income Statement Measures and Discussion5
a.Exxon Mobil Income Statement5
b.Net Cash Flow6
c.Net Operating Profit after Tax (NOPAT)6
d.Operating Cash Flow (OCF)7
2.1Balance Sheet Measures and Discussion8
a.Exxon Mobil Balance Sheet8
b.Net Operating Working Capital (NOWC)8
c.Total Operating Capital10
d.Net Investment in OPC and Gross Investment in OPC10
2.2Free Cash Flow (FCF)11
3.Financial Ratios12
a.Quick ratio12
b.Debt to total asset ratio13
c.TIE ratio13
d.P/E ratio14
e.Market/Book Ratio14
4.Stock Analysis14
a.XOM- Exxon Mobil14
b.Exxon Mobil versus S&P 50017
c.Managerial Performance18

Exxon Mobil

1. Introduction
A Financial Analysis is defined in the business dictionary as “an Assessment of the (1) effectiveness with which funds (investment and debt) are employed in a firm, (2) efficiency and profitability of its operations, and (3) value and safety of debtors' claims against the firm's assets.” This writing assignment will consist of a financial analysis of Exxon Mobil. The goal of this assignment will be met through research and examination of the financial information delivered from either Finance.yahoo.com or Exxon Mobil.com. In the course of this assignment there will be many formulas implemented to ensure that the effectiveness with which funds are employed in Exxon Mobil, the efficiency and profitability of its operations, and the value and safety of debtors’ claims against Exxon Mobil. 1.2 Corporate Background

It was not until 1998, when Exxon Mobil became the power house they are today. Exxon Mobil Corporation is located in Irving, Texas. The CEO, Rex W. Tillerson and other management work day by day with this mission statement in mind, Exxon Mobil Corporation is committed to being the world's premier petroleum and petrochemical company. To that end, we must continuously achieve superior financial and operating results while simultaneously adhering to high ethical standards. Throughout the past Exxon Mobil has slightly changed their mission statement, but it has always been their mission to be a premier company. The reign of Exxon Mobil began with Standard Oil, who eventually got broken up into 34 different companies caused by the US Supreme Court. Two of the spin-off companies were Jersey Standard and Socony, the chief predecessor companies of Exxon and Mobil respectively. In 1931 Socony purchased assets of Vacuum Oil and changed its name to Socony-Vacuum which eventually became Mobil Oil Co. In 1972 Jersey Standard changed its name to Exxon Corporation and established Exxon as a trademark throughout the United States. In 1998, Exxon and Mobil merged to form what we know now as Exxon Mobil Corporation. Lou Noto and Lee Raymond, chairmen and CEO’s of Exxon and Mobil respectively at the time commented that, “This merger will enhance our ability to be an effective global competitor in a volatile world economy and in an industry that is more and more competitive.” They are now the largest publicly traded international oil and gas company. a. Industry

Exxon Mobil competes in the Major Integrated Oil and Gas industry. The Major Integrated Oil and Gas industry has companies that are engaged in the exploration, production, refinement and distribution of oil and gas. These companies usually have global operations and are involved in both exploration/ production and refining/marketing. The Major Integrated Oil and Gas industry is highly competitive and is an industry with high costs. It is very difficult to enter this industry. b. Products

Exxon Mobil is the industry leader in the inventory of global oil and gas resources. They are the world’s biggest refiner and marketer of petroleum products, and...
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