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8/7/2019 analysis inc
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Particulars2005 2006 2007 2008 2009
OPERATING INCOME
Sales & other operating revenue 358955 365467 390328 459579 301500
OPERATING EXPENSES
Crude oil & other product purchase 185219 182546 199498 249454 152806
Production & Other mfg expenses 26819 29528 31885 37905 33027
Selling & other administrativeexpenses
14402 14273 14890 15873 14735
Depreciation & depletion 10253 11416 12250 12379 11917
Exploration expense, including dryholes
964 1181 1469 1451 2021
Sales based taxes 30742 30381 31728 34508 25936
Other taxes & duties 41554 39203 40953 41719 34819
OPERATING INCOME (LOSS) 49002 56939 57655 66290 26239
Non-operating income
Income from equity affiliates 7583 6985 8901 11081 7143
Other income 4142 5183 5323 6699 1943
EARNING BEFORE INTEREST &TAXES
60727 69107 71879 84070 35325
Interest expenses 496 654 400 673 548
Income before income tax 60231 68453 71479 83397 34777
Income tax 23302 27902 29864 36530 15119Net income including non-controlling interest
36929 40551 41615 46867 19658
Minority or non-controlling interest 799 1051 1005 1647 378
Net income 36130 39500 40610 45220 19280
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0
10000
20000
30000
40000
50000
2005 2006 2007 2008 2009
Net Income
Net Income
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Statement of financial position, assets
Assets 2005 2006 2007 2008 2009
Cash 28671 28244 33981 31437 10693
Cash & cash equivalent restricted 4604 4604
Marketable securities 519 570 169
Trade receivable & account receivables 23858 25076 30775 18707 22186
Other notes & accounts receivables 3626 3866 5675 5995 5459
Inventories 9321 10714 11089 11646 11553
Other current assets 3262 3273 3924 3911 5175
Total current assets 73342 75777 85963 72266 55235
Companies at equity in underlyingassets
17696 20382 22053 22030 24411
Companies carried at cost & stockinvestment at fair value
1732 1678 1647 1636 1577
Long-term receivables 1164 1177 4494 4890 5677
Plant, property & equipment(net) 107010 113687 120869 121346 139116
Other assets including, intangibleassets(net)
7391 6314 7056 5884 7307
Total noncurrent assets 134993 143238 156119 155786 178088
Total assets 208335 219015 242082 228052 233323
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Statement of financial position ,liabilities & stockholders equity
Liabilities & stock holders equity 2005 2006 2007 2008 2009
Notes payable & loans payable 1771 1702 2383 2400 2476
Trade payables 22788 25084 29239 21190 24236
Payable to equity companies 2451 2597 3556 3552 4979
Accrued taxes & other income taxes 5607 6052 6485 5866 5921
Other account payable & accruedliabilities
5274 5349 5995 6035 6139
Income taxes payable 8416 8033 10654 10057 8310
Total current liabilities 46307 48817 58312 49100 52061
long-term debt 6220 6645 7183 7025 7129
Post retirement benefit reserve 10220 13931 13278 20729 17942
Accrued liabilities 6434 7116
Deferred income tax liabilities 20878 20851 22899 19726 23148
Other long term obligation 3563 4007 14366 13949 17651
Total noncurrent liabilities
47315 52550 57726 61429 65870
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Liabilities & stock holdersequity
2005 2006 2007 2008 2009
Common stock with out parvalue
4477 4786 4933 5314 5503
Earnings reinvested 163335 195207 228518 265680 276937
Cummalative foreign exchangetransaction
979 3733 7972 1146 4402
Post retirement benefitsreserves adjustment
(2258) (6495) (5983) (11077) (9863)
Common stock held in treasury (55347) (83387) (113678) (148098) (166410)
EXXON MOBIL SHARE OFEQUITY
111186 113844 121762 112965 110569
Non-controlling interests 3527 3804 4282 4558 4823
Total equity 114713 117648 126044 117523 115392
Total liabilities & equity 208335 219015 242082 228052 233323
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RatiosShort term solvency(operating)
y Inventory turnover ratio
Particulars 2005 2006 2007 2008 2009
Sales 358955 365467 390328 459579 301500
Inventory 9321 10714 11089 11646 11553
Inventory turnover off Exxon 38.51 34.11 35.20 39.46 26.10
Inventory turnover measures how quickly the company is moving merchandise through the
warehouse to customers. the smaller number of days, the more efficient a company - inventory is
held for less time and less money is tied up in inventory.
Inventory turnover ratio of Exxon Mobil. Improved in the year 2008 from 2007 as therewas increase in sales. but it has declined in the year in 2009 which is not good from thecompanies point of view
0
10
20
30
40
2005 2006 2007 2008 2009
Inventory turnover
Inventory turnover
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yReceivable turnover ratio
Particulars 2005 2006 2007 2008 2009
Sales 358955 365467 390328 459579 301500
Trade receivables 23858 25076 30775 18707 22186
Receivable turnover of Exxon 15.05 14.57 12.68 24.57 13.59
Accounts receivable is the money that is currently owed to a company by its customers.If a
company's collection period is growing longer, it could mean problems ahead. The quicker a
company gets its customers to make payments, the sooner it has cash to pay for salaries,
merchandise and equipment, loans and, best of all, dividends and growth opportunities .
0
5
10
15
20
25
2005 2006 2007 2008 2009
Receivable turnover ratio
Receivable turnover ratio
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yPayable turnover
Particulars 2005 2006 2007 2008 2009
Sales 358955 365467 390328 459579 301500
Trade payable 22788 25084 29239 21190 24236
payable turnover of Exxon 15.75 14.57 13.35 21.69 12.44
0
5
10
15
20
25
2005 2006 2007 2008 2009
Payable turnover ratio
Payable turnover ratio
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Working capital turnoverParticulars 2005 2006 2007 2008 2009
Sales 358955 365467 390328 459579 301500
Working capital 10391 10706 12625 9163 9503
Working capital turnover ratioOf ExxonMobil
34.54 34.14 30.92 50.16 31.73
0
10
20
30
40
50
60
2005 2006 2007 2008 2009
Working capital turnover ratio
Working capital turnover ratio
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Average inventory processingParticulars 2005 2006 2007 2008 2009
Inventory 38.51 34.11 35.20 39.46 26.10
Average inventory processingperiod
9 11 10 9 14
0
5
10
15
2005 2006 2007 2008 2009
Average inventory processing period
Average inventory processing
period
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Average receivables collection periodParticulars 2005 2006 2007 2008 2009
Receivable 15.05 14.57 12.68 24.57 13.59
Average receivable collectionperiod
24 25 29 15 27
0
5
10
15
20
25
30
2005 2006 2007 2008 2009
Average receivable collection period
Average receivable collection
period
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Operating cycleParticulars 2005 2006 2007 2008 2009
Average inventory processingperiod
9 11 10 9 14
Average receivable collectionperiod
24 25 29 15 27
Operating cycle (no.of.days) 33 36 39 24 41
0
10
20
30
40
50
2005 2006 2007 2008 2009
Operating cycle
O
erati g cycle
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Average payables payment period
Particulars 2005 2006 2007 2008 2009
Payable turnover 15.75 14.57 13.35 21.69 12.44
Average payable 23 25 27 17 29
0
10
20
30
2005 2006 2007 2008 2009
Average payable payment period
Average payable payment
period
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Ratios short term (operating)
Ratio (summary)
Ratios 2005 2006 2007 2008 2009
Turnover
Inventory turnover 38.51 34.11 35.20 39.46 26.10
Receivables turnover 15.05 14.57 12.68 24.57 13.59
Payables turnover 15.75 14.57 13.35 21.69 12.44
Working capital turnover 34.54 34.14 30.92 50.61 31.73
0
10
20
30
40
50
60
2005 2006 2007 2008 2009
Inventory turnover
Receivable turnover
Payable turnover
Working capital turnover
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Cash conversion cycle
Particulars 2005 2006 2007 2008 2009
Average inventory processingperiod
9 11 10 9 14
Add:-Average receivables 24 25 29 15 27
Operating cycle 34 36 39 24 41
Less:-Average payable 23 25 27 17 29
Cash conversion cycle 11 11 12 7 12
0
24
6
8
10
12
2005 2006 2007 2008 2009
Cash conversion cycle
Cash conversion cycle
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LONG TERM (INVESTMENT) ACTIVITY ANALYSIS Net fixed asset turnover
Particulars 2005 2006 2007 2008 2009
Sales 358955 365467 390328 459579 301500
Plant ,property & equipment 107010 113687 120869 121346 139116
Net fixed asset turnover ratio 3.35 3.21 3.23 3.79 2.17
0
1
2
3
4
2005 2006 2007 2008 2009
Net fixed asset turnover ratio
Net fixed asset turnover ratio
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Total asset turnover ratio
Particulars 2005 2006 2007 2008 2009
Sales 358955 365467 390328 459579 301500
Total assets 208335 219015 242082 228052 233323
Total asset turnover ratio 1.72 1.67 1.61 2.02 1.29
0
0.5
1
1.5
2
2.5
2005 2006 2007 2008 2009
Total asset turnover ratio
Total asset turnover ratio
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Equity turnover ratio = sales share holder equity
Particulars 2005 2006 2007 2008 2009
Sales 358955 365467 390328 459579 301500
ExxonMobil shares of equity 111186 113844 121762 112965 110569
Equity turnover ratio 3.23 3.21 3.21 4.07 2.73
0
1
2
3
4
5
2005 2006 2007 2008 2009
Equity turnover ratio
Eq ity t r
ver rati
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Long term (investment) activity analysis
Ratios summary:Particulars 2005 2006 2007 2008 2009
Net fixed asset turnover 3.35 3.21 3.23 3.79 2.17
Total asset turnover 1.72 1.67 1.61 2.02 1.29
Equity turnover 3.23 3.21 3.21 4.07 2.73
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Liquidity ratios :
Current ratioParticulars 2005 2006 2007 2008 2009
Total current assets 73342 75777 85963 72266 55235
Total current liabilities 46307 48817 58312 49100 52061
Current ratio of ExxonMobil 1.58 1.55 1.47 1.47 1.06
Current ratio is defined as the relationship between the current assets & current liabilities. Thusthe two basic concept of current ratio are
yCurrent assets
yCurrent liabilitiesCurrent assets include debtors, bill receivable, inventory pre-paid expenses etcCurrent liabilities include creditors, bills payable, bank overdraft etc
Ansignificant current ratio is 2:1 ratio. Thus this is also known as 2:1 ratio. The current ratio of
Exxon Mobil in the year 2005 was 1.58 which is less than the standard ratio.it has declined to1.06 in the year 2009 which is very less. It indicates danger signal to the management
0
1
2
2005 2006 2007 2008 2009
Current ratio
Current ratio
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Quick ratio = quick assets current liabilitiesParticulars 2005 2006 2007 2008 2009
Cash & cash equivalents 28671 28244 33981 31437 10693
Cash & cash equivalentsrestricted
4604 4604
Marketable securities 519 570 169
Trade notes & accountsreceivables
23858 25076 30775 18707 22186
Other notes & accountsreceivable 3626 3866 5675 5995 5459
Total quick assets 60759 61790 70950 56709 38507
Total current liabilities 46307 48817 58312 49100 52061
Quick ratio of ExxonMobil 1.31 1.27 1.22 1.15 0.74
0
0.5
1
1.5
2005 2006 2007 2008 2009
Quick ratio
Quick ratio
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Cash ratio: total cash assets current liabilities
Particulars 2005 2006 2007 2008 2009
Cash & cash equivalents 28671 28244 33981 31437 10693
Cash & cash equivalentsrestricted
4604 4604
Marketable securities 519 570 169
Total cash assets 33275 32848 34500 32007 10862
Total current liabilities 46307 48817 58312 49100 52061
Cash ratio of ExxonMobil corp. 0.72 0.67 0.59 0.65 0.21
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Long-term debt & solvency analysis
Debt to equity = debt equity
Particulars 2005 2006 2007 2008 2009
Notes & loans payable 1771 1702 2383 2400 2476
Long term debt 6220 6645 7183 7025 7139
Total debt 7991 8347 9566 9425 9605
ExxonMobil share of equity 111186 113844 121762 112965 110569
Debt to equity of ExxonMobil
corp.
0.07 0.07 0.08 0.08 0.09
Debt to equity ratio measures ultimate solvency of a concern. It provides a margin of safety tothe creditors. Thus the smaller the ratio the more secure is the creditors. an appropriate debt-
equity ratio is 0.33 . A ratio higher than this is an indication of risky financial policies.
In the year 2005 the Debt equity ratio was 0.07 & In the year 2009 it was 0.09.which is smallerthan the standard. It shows the positive signs for the company
Debt to capital ratio = debt capital
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Particulars 2005 2006 2007 2008 2009
Notes & loans payable 1771 1702 2383 2400 2476
Long term debt 6220 6645 7183 7025 7139
Total debt 7991 8347 9566 9425 9605
ExxonMobil share of equity 111186 113844 121762 112965 110569
Total capital 119177 122191 131328 122390 120714
Debt to capital ratio ofExxonMobil corp.
0.07 0.07 0.07 0.08 0.08
Interest coverage ratio = EBIT interest expenses
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Particulars 2005 2006 2007 2008 2009
EBIT 60727 69107 71879 84070 35325
Interest expenses 496 654 400 673 548
Interest coverage of ExxonMobil 122.43 105.67 179.70 124.92 64.46
Interest coverage ratio measures the number of times interest is covered by the profits availableto pay the charges. This ratio is used to test the debt servicing capacity of a concern. Generally
higher the ratio, the more safe are the long term creditors.
Interest coverage ratio of Exxon Mobil was 122.43 in the year 2005 & in the year 2007 itreached to its maximum level at 179.70 as there was increase in profits & decline in interest
expenses. But it was detroted in the year 2009 declined up to 64.46.This is not sufficient for thefirm. It has to increase its Interest coverage ratio to be strong financial frim
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Ratios (Summary)Long-term debt & solvency analysisParticulars 2005 2006 2007 2008 2009
Debt to equity 0.07 0.07 0.08 0.08 0.09
Debt to capital 0.07 0.07 0.07 0.08 0.08
Interest coverage 122.43 105.67 179.70 124.92 64.46
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Profitability ratiosProfitability is an indication of the efficiency with which the operations of the concern areCarried on. Profit is what is left for shareholders after all the charges have been paid.
Operating profit margin
Particulars 2005 2006 2007 2008 2009
Operating income 49002 56939 57655 66290 26239
Sales 358955 365467 390328 459579 301500
Operating profit margin (%) 13.65 15.58 14.77 14.42 8.70
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Net profit margin = net income salesParticulars 2005 2006 2007 2008 2009
Net income 36130 39500 40610 45220 19280
Sales 358955 365467 390328 459579 301500
Net profit margin (%) 10.07 10.81 10.40 9.84 6.39
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Return on equity = net income shareholders equity
Particulars 2005 2006 2007 2008 2009
Net income 36130 39500 40610 45220 19280
ExxonMobil share of equity 208335 219015 242082 228052 233323
Return on equity (%) 17.34 18.04 16.78 19.83 8.26
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Ratios (summary)Profitability ratios
Particulars 2005 2006 2007 2008 2009
Return on sales (%)
Operating profit margin 13.65 15.58 14.77 14.42 8.70
Net profit margin 10.07 10.81 10.40 9.84 6.39
Return on investment (%)
Return on equity 32.50 34.70 33.35 40.03 17.44
Return on assets 17.34 18.04 16.78 19.83 8.26
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Analysis
Plant, property& equipment :
Depreciation, depletion and amortization, based on cost less estimated salvage value of the asset,
are primarily determined under either the unit-of-production method or the straight-line method,
which is based on estimated asset service life taking obsolescence into consideration.
Maintenance and repairs, including planned major maintenance, are expensed as incurred. Major
renewals and improvements are capitalized and the assets replaced are retired.
Exxon Mobil Corp. uses the successful efforts method to account for its exploration and
production activities. Under this method, costs are accumulated on a field-by-field basis with
certain exploratory expenditures and exploratory dry holes being expensed as incurred. Costs of
productive wells and development dry holes are capitalized and amortized on the unit-of-
production method.
Exxon Mobil Corp. carries as asset exploratory well costs when the well has found a sufficient
quantity of reserves to justify its completion as a producing well and where Exxon Mobil Corp.
is making sufficient progress assessing the reserves and the economic and operating viability of
the project. Exploratory well costs not meeting these criteria are charged to expense.
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Statement of financial position, property, plant and equipment
Particulars 2005 2006 2007 2008 2009
Upstream 148844 163087 178712 168977 198036
Downstream 59338 62392 65841 64618 68092
Midstream 21055 22197 24081 25463 28464
Other 11057 11608 11706 11787 11314
Total P.P.E 240294 259284 280340 270845 305906
Accumulateddepreciation
(133284) (145597) (159471) (149499) (166790)
Plant, property &equipment (net)
107010 113687 120869 121346 139116
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Average age (%) of PPE = depreciation PPE
Particulars 2005 2006 2007 2008 2009
Accumulateddepreciation & depletion
133284 145597 159471 149499 166790
Total P.P.E 240294 259284 280340 270845 305906
Average age (%) 55.47 56.15 56.88 55.20 54.52
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Analysis of debt
-Short term debt
Particulars 2005 2006 2007 2008 2009
Bank loans 790 753 1238 1139 1043
Commercial paper 291 274 205 172 201
Long term debt duewithin one year
515 459 318 368 348
Other notes & loanspayable
175 216 622 721 884
Total notes & loanspayable or short termdebt
1771 1702 2383 2400 2476
long term debt
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Particulars 2009 2008 2007 2006 2005
Total long term debt 7129 7025 7183 6645 6220
-total debt (summary)
Particulars 2009 2008 2007 2006 2005
Short term debt 2476 2400 2383 1702 1771
Total long term debt 7129 7025 7183 6645 6220
Total debt of ExxonMobilcorp.
9605 9425 9566 8347 7991
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valuation ratios
Price to earnings ratio = market price per share E.P.S
Particulars 2009 2008 2007 2006 2005
Share price 65 67.90 89.38 71.68 59.37
E.P.S 4.08 9.15 7.59 6.94 5.92
Price to earnings ratio 15.92 7.42 11.78 10.33 10.03
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Price to operating profit = market price per share operating income
Particulars 2009 2008 2007 2006 2005
No. ofcommonshare stockoutstanding
4721273113 4941630490 5350027205 5693398774 6106332510
Operatingincome
26239 66290 57655 56939 49002
Operatingprofit pershare
5.56 13.41 10.78 10.00 8.02
Share price 65 67.90 89.38 71.68 59.37
Price to
operatingprofit ratio
11.70 5.06 8.29 7.17 7.40
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Price to sales = market price per share sales per share
Particulars 2009 2008 2007 2006 2005
No. Ofcommonshare stockoutstanding
4721273113 4941630490 5350027205 5693398774 6106332510
Sales 301500 459579 390328 365467 358955
Sales pershare
63.86 93 72.96 64.19 58.78
Share price 65 67.90 89.38 71.68 59.37
Price to
sales
1.02 0.73 1.23 1.12 1.01
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Price to book value = market price per share book value
Particulars 2009 2008 2007 2006 2005
No. Ofcommonshare stockoutstanding
4721273113 4941630490 5350027205 5693398774 6106332510
EXXONMOBILSHARE OFEQUITY
110569 112965 121762 113844 111186
Book value 23.42 22.86 22.76 20.00 18.21
Share price 65 67.90 89.38 71.68 59.37
Price to
book value
2.78 2.97 3.93 3.58 3.26
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Valuation ratios summary :
Particulars 2009 2008 2007 2006 2005
Price toearningsratio
15.92 7.42 11.78 10.33 10.03
Price tooperatingprofit ratio
11.70 5.06 8.29 7.17 7.40
Price tosales
1.02 0.73 1.23 1.12 1.01
Price tobook value
2.78 2.97 3.93 3.58 3.26