Company Profile
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
| 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
| 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
| 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
| 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
| 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
| 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
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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