Company Analysis: Exxon
When analyzing Exxon's financial statements, it is important to look for large movements in specific accounts from one year to the next. In the fiscal year 2020, Exxon experienced a significant decrease in revenue, reflecting the impact of the COVID-19 pandemic on the oil and gas industry. Exxon's revenue in 2020 was $181.5 billion, compared to $264.9 billion in 2019. Additionally, Exxon's net income in 2020 was a loss of $22.4 billion, compared to a profit of $14.3 billion in 2019.
Exxon's notes to the financial statements provide additional information about the company's accounting methods and significant transactions. For example, the company notes that it recognized asset impairments of $19.3 billion in 2020 due to lower expected commodity prices and changes in the company's long-term business plans.
To evaluate Exxon's balance sheet, it is important to look for large changes in the company's assets, liabilities, or equity accounts. In 2020, Exxon's total assets decreased from $346.2 billion to $283.7 billion. This decrease was primarily due to a decrease in property, plant, and equipment, as well as a decrease in investments and advances. Additionally, Exxon's total liabilities decreased from $235.9 billion to $205.4 billion, primarily due to a decrease in long-term debt.
When analyzing Exxon's income statement and statement of cash flows, it is important to look for trends in revenue, expenses, and cash flows. In 2020, Exxon's revenue decreased significantly due to the COVID-19 pandemic, while its operating expenses decreased as well. However, Exxon also recognized significant impairment charges and restructuring costs, which contributed to the company's net loss for the year. In terms of cash flows, Exxon's net cash provided by operating activities decreased from $40.1 billion in 2019 to $23.1 billion in 2020.
To calculate ratios for Exxon, we can use financial data from the company's balance sheet and income statement for 2020 and 2019. The debt-to-equity ratio for Exxon in 2020 was 0.67, compared to 0.55 in 2019. This indicates that Exxon has increased its leverage over the past year. The current ratio for Exxon in 2020 was 0.90, compared to 1.08 in 2019. This indicates that Exxon's current assets are not sufficient to...
…+ $178,295) / 2) = 13.2%The ROE for 2022 is significantly higher than in 2021, indicating that the company has generated more profit per unit of shareholder equity. Exxon's ROE has improved from a negative 25.11% in 2021 to a positive 9.50% in 2022. This indicates that the company has become more efficient in generating profits from the equity invested in the business. However, the ROE is still relatively low, suggesting that there is room for improvement.
Net profit margin: 2022: Net income / Total revenue = $55,740 / $329,777 = 16.9% 2021: Net income / Total revenue = $23,040 / $246,204 = 9.4%
The net profit margin for 2022 is higher than in 2021, indicating that the company has generated more profit per dollar of revenue. Exxon's net profit margin has improved from a negative 3.82% in 2021 to a positive 20.36% in 2022, indicating that the company has become more efficient in generating profit from its operations. This increase in the ratio is a positive sign, indicating that Exxon has improved its profitability.
Overall, based on the ratios calculated and the y-o-y reporting,…
References
Exxon Financial Reporting 2020. Retrieved from https://corporate.exxonmobil.com/-/media/Global/Files/investor-relations/quarterly-earnings/earnings-announcements/2020-earnings-announcements/4q-earnings-release.pdf
Exxon Financial Reporting 2022. Retrieved from https://corporate.exxonmobil.com/news/newsroom/news-releases/2023/0131_exxonmobil-announces-full-year-2022-results
Like most litigations on such complicated issues the company had little to do but show reasonable accommodation, adopt better surface practices and wait out a lengthy period before their liability was reduced substantially by the courts. Ethical analysis: The key ethical issues of the case are pretty clear, did the captain knowingly endanger the environment by continuing to retain his position and navigate tankers through the area and did the company
Cousins issued right rudder commands to result in the desired course change and took the ship off autopilot. While such efforts did not result in turning swiftly Cousins ordered further right rudder with increasing urgency. The bumpy ride and six very sharp jolts occurred at 12:04 AM. The vessel grounded towards southwest balanced across its middle on a pinnacle of Bligh Reef. Eight of the eleven oil tanks punctured flooding
Additionally the company is increasingly concerned with meeting the energy needs of people and organizations throughout the world ("Company Profile"). To this end Exxon Mobil is committed to "exploration and production of crude oil and natural gas; the manufacture of petroleum products; and the transportation and sale of crude oil, natural gas, and petroleum products ("Company Profile")." In addition Exxon Mobile is a primary producer and marketer of both commodity
Exxon Mobil The majority of Exxon Mobil's assets are tangible assets. The company held nearly $200 billion in property, plant and equipment as of December 31, 2010 and this represents two-thirds of the company's assets. Most of the other assets that Exxon Mobil has are investments, receivables, inventory and cash. Goodwill and other intangible assets do not even register on the company's balance sheet. The net income from 2010 was $30.46 billion
Rawl confessed that it was "bad judgement involved in even putting a person with a critical skill back in that kind of work...It is pretty clear we have to tighten those things up" (Loeb pp). When asked what advice he had for other CEOs, Rawl stated that they had better prethink which way they are going to jump from a public affairs standpoint before they have any kind of a
Exxon Mobil has the United States as its home country, although the company operates globally. The U.S. remains an important source of fuel, and perhaps the company's biggest retail market. The legal and political environment is very favorable in the United States for Exxon Mobil. In general, oil companies receive a tremendous array of subsidies, often granted by politicians who have received large contributions from fossil fuel companies (Carrington &
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