ExxomMobil Corporation (XOM) Extended Graph Analysis

November 11th, 2020 Posted by Extended Analysis No Comment yet

Company Profile

XOM

Exxon Mobil Corporation is a public company registered under NYSE with a ticker symbol XOM.  Founded by John D. Rockefeller on November 30, 1999. The company was incorporated within the State of the latest Jersey in 1882. Divisions and affiliated companies of ExxonMobil operate or market products within the US and most other countries of the planet. Their principal business involves the exploration for, and production of, petroleum and gas and manufacture, trade, transport, and sale of petroleum, gas, petroleum products, petrochemicals, and a good sort of specialty products. Affiliates of ExxonMobil conduct extensive research programs in support of those businesses.

 

ExxonMobil Corporation (XOM) Extended Graph Analysis

1. XOM CASH FLOW

XOM CASH FLOW

2015 2016 2017 2018 2019 2020
Net cash flow provided by operating activitIes 30,340,000,000 22,080,000,000 30,070,000,000 36,010,000,000 29,720,000,000 21,710,000,000
Net cash used for investing activities -23,820,000,000 -12,400,000,000 -15,730,000,000 -16,450,000,000 -23,080,000,000 -21,860,000,000
Net cash provided by (used for) financing activities -7,040,000,000 -9,290,000,000 -15,130,000,000 -19,450,000,000 -6,620,000,000 -8,940,000,000
Capital expenditure -26,490,000,000 -16,163,000,000 -15,402,000,000 -19,574,000,000 -24,361,000,000 -23,351,000,000
Free cash flow 3,854,000,000 5,919,000,000 14,664,000,000 16,440,000,000 5,355,000,000 -1,646,000,000
Working Capital -11,353,000,000 -6,222,000,000 -10,637,000,000 -9,165,000,000 -13,937,000,000 -13,937,000,000

Facts:

  • Net cash provided by operating activities was $21.710 billion.
  • Cash from investing activities was -$21.860 billion.
  • Net cash provided financing activities was -$8.90 billion.
  • Capital expenditures were -$23.351 billion.
  • Free cash flow was -$1.646 billion.
  • Working capital was -$13.937 billion.

Explanation

  • Cash from operating activities was erratic in movement as net income was not stable in movement in the last five years.
  • The cash from the operation was down 27 percent from 2019 to the trailing twelve months.
  • Cash from investing activities was the purchase of property, plant, and equipment and purchase of investment and cash flow from continuing investing activities.
  • Net cash from financing activities are payments for common stock, cash dividend paid, and proceed from the issuance of long-term debt.
  • Capital expenditures are an investment in property, plant, and equipment and sale of business assets.
  • Free cash flow was trending up from 2015 to 2018, however in 2019 and the trailing twelve months it descended 67 percent and 131 percent, respectively, due to the drop in net income.
  • Working capital was negative in the last five years due to its current liabilities being higher than the current assets.

Interpretation

The company has managed to generate a positive cash flow from operations in the last five years, however not enough to sustain a positive working capital. Free cash flow suffered a downturn in 2019 and the trailing twelve months.

2. BALANCE SHEET

XOM BALANCE SHEET

2015 2016 2017 2018 2019
Total cash 3,710,000,000 3,660,000,000 3,180,000,000 3,040,000,000 3,090,000,000
Current Assets 42,620,000,000 41,420,000,000 47,130,000,000 47,970,000,000 50,050,000,000
Net property, plant and equipment 251,610,000,000 244,220,000,000 252,630,000,000 247,100,000,000 253,020,000,000
Total non-current assets 294,140,000,000 288,900,000,000 301,560,000,000 298,220,000,000 312,550,000,000
Total assets 336,760,000,000 330,310,000,000 348,690,000,000 348,200,000,000 362,600,000,000
Current liabilities 53,980,000,000 47,640,000,000 57,770,000,000 57,140,000,000 63,990,000,000
Non-current liabilities 105,970,000,000 108,850,000,000 96,420,000,000 90,530,000,000 99,670,000,000
Total liabilities 159,950,000,000 156,480,000,000 154,190,000,000 147,670,000,000 163,660,000,000
Retained earnings 412,440,000,000 407,830,000,000 414,540,000,000 421,650,000,000 421,340,000,000
Stockholders equity 176,810,000,000 173,830,000,000 194,500,000,000 198,530,000,000 198,940,000,000

Facts:

  • Total cash was $3.090 billion in 2019.
  • Current assets were $50.050 billion in 2019.
  • Net property, plant, and equipment were $253 billion in 2019.
  • Total non-current assets were $313 billion in 2019.
  • Total assets were $363 billion in 2019.
  • Current liabilities were $64 billion in 2019.
  • Non-current liabilities were $99.670 billion in 2019.
  • Total liabilities were $163.660 billion in 2019.
  • Retained earnings were $421.340 billion in 2019.
  • Stockholders’ equity was $198.940 billion in 2019.

Explanation:

  • Total cash represents 0.85 percent of the total assets and 6 percent of current liabilities.
  • Current assets represent 13.80 percent of total assets.
  • Net property, plant, and equipment represent 70 percent of total assets.
  • Total non-current assets represent 86 percent of total assets.
  • Total assets grew 8 percent in five years.
  • Current liabilities represent 39 percent of the total liabilities.
  • Non-current liabilities represent 61 percent of the total liabilities.
  • Total liabilities represent 45 percent of the total liabilities and stockholders’ equity.
  • Retained earnings represent 212 percent of the stockholder’s equity.
  • Stockholders’ equity represents 55 percent of the total liabilities and stockholders’ equity.

Interpretation

The balance sheet shows that the company is not liquid. Its current liabilities were higher than the current assets in the last five years. The company may have difficulty in meeting its obligations on due time. The stock investors have a little more stake than that of the creditors.

3. XOM INCOME AND MARKET

XOM INCOME AND MARKET

2015 2016 2017 2018 2019 2020
Revenue 259,490,000,000 218,610,000,000 237,160,000,000 279,330,000,000 255,580,000,000 213,860,000,000
EBIT 12,880,000,000 940,000,000 12,070,000,000 22,120,000,000 12,770,000,000 4,210,000,000
Net Income 16,150,000,000 7,840,000,000 19,710,000,000 20,840,000,000 14,340,000,000 7,170,000,000
EBITDA 40,330,000,000 30,730,000,000 39,170,000,000 50,460,000,000 39,880,000,000 30,770,000,000
Market Capitalization 324,501,000,000 374,281,000,000 354,392,000,000 288,703,000,000 205,247,000,000 145,155,000,000
Intrinsic Value 151,514,376,248 168,939,472,886 488,272,621,939 484,832,396,195 488,272,621,939 582,499,629,712

Facts:

  • Revenue was $213.860 in 2020 trailing twelve months.
  • EBIT was $4.210 billion in 2020 trailing twelve months.
  • Net income was $7.170 billion in 2020 trailing twelve months.
  • EBITDA was $30.770 billion in 2020 trailing twelve months.
  • Market capitalization was $145.155 billion in the trailing twelve months.
  • The intrinsic value was $582.5 billion in the trailing twelve months.

Explanation

  • Revenue has a negative growth of 18 percent in the last five years. And, revenue suffered a 16 percent downturn from 2019 to the trailing twelve months.
  • EBIT deteriorates 67 percent from 2019 to the trailing twelve months.
  • Net income dive 50 percent from 2019 to the trailing twelve months.
  • EBITDA was down 23 percent from 2019 to the trailing twelve months.
  • Market capitalization fell 29 percent from 2019 to the trailing twelve months.
  • The intrinsic value was up 19 percent from 2019 to the trailing twelve months.

Interpretation

The earnings of the company deteriorate from 2019 to the trailing twelve months. The earnings were greatly impacted by the Covid 19 pandemic as there were substantial reductions in consumer and business activity which reduced the demand for crude oil, natural gas, and petroleum products significantly. Market capitalization was affected by the global pandemic and was valued lower from 2019 to the trailing twelve months. 

4. XOM FINANCIAL RATIOS

XOM FINANCIAL RATIOS

2015 2016 2017 2018 2019 2020
Asset turnover (average) 0.76 0.66 0.70 0.80 0.72 0.59
Return on assets % 4.71 2.35 5.81 6.00 4.05 1.99
Return on equity % 9.36 4.64 11.10 10.98 7.48 3.86
Return on invested capital % 7.93 3.87 9.12 9.28 6.36 3.26
Debt/Equity 0.12 0.17 0.13 0.11 0.14 0.26

Facts:

  • The asset turnover was 0.59 ratio.
  • The return on assets was 1.99 percent.
  • The return on equity was 3.86 percent.
  • The return on invested capital was 3.26 percent.
  • The debt/Equity ratio was 0.26.

Explanation

  • Asset turnover indicates that for every dollar invested in assets, the company generated 0.59 cents in sales.
  • Return on assets indicates that for every dollar invested in assets, the company generated 1.99 cents of net income.
  • Return on equity indicates that for every dollar invested in common stock equity it generated $3.86 of net income.
  • Return on invested capital indicates that the per dollar capital investment yielded 3.26 cents of net income.
  • The debt/Equity ratio indicates that for every dollar in assets, 26 percent was financed by creditors.

Interpretation

The financial ratios of the company show acceptable returns on investments.

5. XOM KEY EXECUTIVE COMPENSATION

XOM TOTAL KEY EXECUTIVE COMPENSATION

2014 2015 2016 2017 2018
Key Executive Compensation
Salary 1,142,500 1,965,417 2,287,500 36,750 5,664,917
Bonus 1,876,000 2,628,000 2,218,000 4,472,000 8,039,000
Annual Other Income
Restricted Stock Award 8,644,160 15,889,684 21,344,963 24,608,696 37,654,910
Securities Options
LTIP Payout
Non-Equity Compensation
Other Compensation 4,471,896 4,714,133 6,553,212 3,880,410 6,242,172
Total 16,134,566 25,197,234 32,403,675 36,561,856 57,600,999
Daren W. Woods, Chairman of the Board and CEO
Salary 736,667 1,000,000 1,200,000 1,400,000
Bonus 1,219,000,000 1,232,000,000 1,848,000 2,464,000
Annual Other Income
Restricted Stock Award 7,241,492 12,014,215 10,809,810 11,648,250
Securities Options
LTIP Payout
Non-Equity Compensation
Other Compensation 1,097,713 2,600,713 3,608,323 3,265,537
Total 10,294,872 16,846,928 17,466,133 18,777,787
Andrew Swiger, SVP and Principal Financial Officer
Salary 1,142,500 1,228,750 1,287,500 1,337,500 1,385,750
Bonus 1,876,000 1,409,000 986,000 1,603,000 1,848,000
Annual Other Income
Restricted Stock Award 8,644,160 8,648,192 9,330,748 8,123,736 8,666,298
Securities Options
LTIP Payout
Non-Equity Compensation
Other Compensation 4,471,896 3,616,420 3,952,499 151,738 158,830
Total 16,134,556 14,902,362 15,556,747 11,215,974 12,068,878
Neil A. Chapman, Senior Vice President
Salary 833,000
Bonus 1,276,000
Annual Other Income
Restricted Stock Award 5,979,435
Securities Options
LTIP Payout
Non-Equity Compensation
Other Compensation 1,514,571
Total 9,603,006
Jack Williams, Senior Vice President
Salary 929,167
Bonus 1,276,000
Annual Other Income
Restricted Stock Award 5,979,435
Securities Options 0
LTIP Payout 0
Non-Equity Compensation 0
Other Compensation 1,178,184
Total 9,362,786
Neil W. Duffin, President ExxonMobil Global Projects Company
Salary 1,063,250 1,107,000
Bonus 1,021,000 1,175,000
Annual Other Income
Restricted Stock Award 5,675,150 5,381,492
Securities Options
LTIP Payout
Non-Equity Compensation
Other Compensation 120,349 125,050
Total 7,879,749 7,788,542

Facts:

  • Total key executive compensation in 2014 was $16,134,566.
  • The total key executive compensation in 2015 was $25,197,234.
  • Key executive compensation in 2016 was $32,403,675.
  • The key executive compensation in 2017 was $36,561,856.
  • Total key executive compensation in 2018 was $57,600,999.

Explanation

  • The total key executive salary of Daren W. Woods, Chairman of the Board and CEO represents 32.60 percent.
  • The key executive salary of Andrew Swiger, SVP and Principal Financial Officer represents 20.95 percent.
  • The key executive salary of Neil A. Chapman, Senior Vice President represents 16.67 percent of the total key executive compensation.
  • Key executive compensation of Jack Williams, Senior Vice President represents 16.25 percent.
  • The key executive compensation of Neil W. Duffin, President ExxonMobil Global Projects Company represents 13.52 percent.

Interpretation

The key executive salary includes basic salary, annual other income, restricted stock award, securities options, LTIP payout, non-equity compensation, and other compensation.

6. XOM LOBBYING AND CONTRIBUTIONS

XOM LOBBYING AND CONTRIBUTIONS

PERIOD AMOUNT
1998 $11,060,000
1999 $11,969,801
2000 $7,077,963
2001 $6,012,249
2002 $8,377,729
2003 $7,660,000
2004 $7,860,000
2005 $7,300,000
2006 $14,540,000
2007 $16,940,000
2008 $29,000,000
2009 $27,610,000
2010 $12,570,000
2011 $12,730,000
2012 $12,970,000
2013 $13,420,000
2014 $12,650,000
2015 $11,980,000
2016 $11,840,000
2017 $11,390,000
2018 $11,150,000
2019 $9,750,000
2020 $6,550,000

Facts

Exxon Mobil Inc was incurring lobbying and contributions expenditures to the politicians from 1998 to the current date 2020.

Explanation

A note from OpenSecret.org Center for Responsive Politics quoted below:

NOTE: Figures on this page are calculations by the Center for Responsive Politics based on data from the Senate Office of Public Records. Data for the most recent year was downloaded on October 23, 2020 and includes spending from January 1 – September 30. Prior years include spending from January through December.

Interpretation

Lobbying and contributions to politicians vary every cycle; it may increase or decrease in amount depending on the attention given by the federal government on the issues of the company.

7. XOM FINANCIAL STRENGTH

XOM FINANCIAL STRENGTH

DATA

Working Capital -$13,937,000,000
Total Assets $362,600,000,000
Sales $213,860,000,000
EBIT $4,210,000,000
Market value of equity $202,207,500,000
Book value of total liabilities $163,660,000,000
Retained earnings $421,340,000,000

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets -0.04 1.20 -0.05
B – Retained Earnings / Total Assets 1.16 1.40 1.63
C – EBIT / Total Assets 0.01 3.30 0.04
D – Market Value of Equity / Book Value of Total Liabilities 1.24 0.60 0.74
E – Sales / Total Assets 0.59 1.00 0.59
Z-Score 2.95

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

Explanation:

Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

The Z-score of ExxonMobile was calculated at 2.95 scores. According to Dr. Altman’s grading scale, a score of 1.8 to 3.0 indicates that the company is a little short of financial stability. The main factors of this statistical measurement are profitability, liquidity, leverage, and efficiency. 

Overview

ExxonMobil is a stable and solid company. The demand for chemical products continues to grow in 2019 however due to the global pandemic its earnings were affected and market value declined.

CITATION

https://www.opensecrets.org/federal-lobbying/clients/lobbyists?cycle=2020&id=d000000129

https://corporate.exxonmobil.com/Company/Who-we-are

Researched and written by Criselda

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