Analyze the financial performance of the Exxon Mobil UK

Analyze the financial performance of the Exxon Mobil UK

Abstract

This project investigates economic performance and place by evaluating respective profit, decrease and consolidation balance sheet of three worldwide oil businesses Exxon Mobil company, regal Dutch /Shell Group and BP Global. The authors use three years' (2002-2004) consolidated financing data of these companies as backup in models to perform the relative exercise and get access to relative performance of economic accounting happenings. Vertical and level analysis were utilized to assess businesses' financial presentation and place, application of ratios investigation technique to economic declarations boasts promise in expanding insight into specific strengths and flaws of the businesses' economic situation. This article aims to accurately understand meaning and functions of financial accounting analysis methods, and to comprehend role of financial accounting in business decision-making accordingly.

Chapter 1: Introduction

Background

ExxonMobil Company, previously entitled Exxon Company, was incorporated in State of New Jersey in 1882. On November 30, 1999, Mobil Corporation became the wholly-owned subsidiary of Exxon Corporation, and Exxon changed its name to ExxonMobil Corporation. ExxonMobil Corporation has several divisions and hundreds of affiliates, many with names that include ExxonMobil, Exxon, Esso or Mobil. ExxonMobil is one of world's biggest integrated oil company. Exxon Mobil engages in oil and gas exploration, output, supply, transport, and trading round world. It has proved reserves of 21.2 billion barrels of oil equivalent. ExxonMobil's 45 refineries in 25 nations have the capacity of making 6.3 million barrels per day. The business provision perfected products to 42,000 service positions in more than 100 nations that function under Exxon, Esso, and Mobil emblems (including more than 16,000 in US). Exxon Mobil is furthermore the foremost petrochemical producer.

Purpose of Study

The main purpose of this study is to analyze financial performance of Exxon Mobil, world's largest publicly traded energy company.

Chapter 2: Literature Review

The profits and expenses analysis of ExxonMobil Corporation (Income statement review)

ExxonMobil's total revenue increased 20.7% in 20x3 and 20.8% in 20x4. For other income in 2003 was highest point contrast to other two years, it has made corporation's profit looks pretty good. Net profits from original activity before taxation were up 82.6% in 20x3 and grown 29% in 20x4.

Moreover, ExxonMobil's net income has significant jumped up 87.7% in year 20x3, and raised 17.8% in 20x4 compared to previous year. Because total cost in 20x3 grew slower then 20x2, management economized variety expenses carefully, and thus, total cost has no greater changes in year. Also, there was no merger related expense, and interest expense decreased $191 million or 92.2%, furthermore, cumulative effect of accounting changes in net income tax has positive $500 million due to "SARS" impact in 20x3, all these activities has made ExxonMobil fairly profitable while other industry in gloomy economic period. In 20x4, cost increases associated with higher energy prices, adverse foreign exchange impacts, and new operations were partly offset by efficiency initiatives captured in all business lines, forasmuch, percent of total cost in 20x4 was increase 19.6%.

Elucidation of Assets structure (Balance sheet review)

In ...