Financial Management

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Oral Roberts University

Financial Management
Ratio Trend Analysis Project
Exxon & Chevron

Seanyquah Denson
Fin 338, Spring Semester, Class: 9:50
Professor Jonathan Wiley
February 8, 2013

TABLE OF CONTENTS
I. Executive Summery………………………………………………………………3 II. Liquidity Ratios
A. Current Ratios…………………………………………………………5- 6 B. Quick Ratios……………………………………………………………..7-8 III. Debt Management Ratios
C. Debt Ratios………………………………………………………………8-10 D. Time Interest Earned Ratios………………………………………………11 IV. Asset Management Ratios
E. Inventory Turnover (SALES) Ratio…………………………………………12 F. Days Sales Outstanding Ratio (365) ……………………………………….13 G. Fixed Asset Turnover Ratio …………………………………………………14 H. Total Asset Turnover Ratio …………………………………………………15 V. Profitability Ratios

I. Profit Margin on Sales……………………………………………………….17 J. Return on Total Assets……………………………………………………..18 K. Return on Equity………………………………………………………….. 19 VI. Du Pont Analysis for ROA………………………………………………………23 VII. DuPont Analysis for ROE……………………………………………………………24 VIII. Excel Spreadsheet for Exxon……………………………………………………………25 IX. Excel Spreadsheet for Chevron…………………………………………………………26 X. SEC-Financial Statements for Exxon…………………………………………………27 L. For Year 2006………………………………………………………………28 M. For Year 2007………………………………………………………………29 N. For Year 2008………………………………………………………………30 O. For Year 2009………………………………………………………………31 P. For Year 2010………………………………………………………………32 Q. For Year 2011………………………………………………………………33 XI. SEC- Financial Statements for Chevron………………………………………………34 R. For Year 2006………………………………………………………………35 S. For Year 2007………………………………………………………………36 T. For Year 2008………………………………………………………………37 U. For Year 2009………………………………………………………………38 V. For Year 2010………………………………………………………………39 W. For Year 2011………………………………………………………………40 XII. Appendices

X. Ratio Checker……………………………………………………………41 Y. Industry Ratios……………………………………………………………42 a. The Almanac of Business and industry Financial Ratios b. Mergent Online

Exxon & Chevron Financial Condition
Executive Summary
Exxon and Mobil Fuels have a solid reputation for excellence in the industry of trusted fuels that not only meet the standard, but goes a little beyond the call of duty. There is a heartbeat that thrives behind each Exxon and Mobil Fuels that desires for the product to work best for the customer. For the following analysis, Chevron will be the competitor and the industry will be involved to use as a tool so that the company, the competitor and the industry can be compared. The analysis consists of four main sets of ratios. They are liquidity ratios, debt management ratios, asset management ratios, and the profitability ratio. This analysis will start in the year 2006 and ends 2011.

During the six years, the liquidity ratios show how well Exxon and Chevron executed the current ratio and the quick ratio. For Exxon, the current ratio for Exxon ranged from 1.5- .94 and Chevron ranged from 1.27- 1.4. The Current ratio showed that the Exxon started out great with the current ratio, but because of the constant growing liability the current ratio dropped below the industry. In this case, that is very detrimental. Chevron wasn’t consistent either but it increased in ratio by slightly increasing in current assets and by lowering some of its liabilities. Chevron separated the industry from Exxon. It...
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