Analysis of ExxonMobil

Analysis of ExxonMobil

Introduction

ExxonMobil (Exxon Mobile Corporation) is an American based multinational corporation headquartered in Irving, Texas, United States. It was formed on 30th November 1990 after the merger of Mobil Oil Company and Exxon Corporation. Company operations are solely related to the detection, exploration, production and distribution of petroleum products, crude oil and natural gas. Company wants to involve in the business of electricity generation and petrochemicals. Performance of ExxonMobil is outstanding its revenue is increasing day by day. Forbes Global 2000 ranks ExxonMobil at number 5 in its 2000 list based on its revenues, market capitalization and performance (Global, 2000).

ExxonMobil is the largest company in the world by revenue. For the year 2011, 2012 and 2013 it is considered as the largest publicly traded organization. ExxonMobil consists of thirty seven refinery setups in twenty one countries. Superior oil, Imperial oil limited and Sea River maritime are some smaller subsidiaries of ExxonMobil apart from that it also posses several other subsidiaries across the globe. Operating and business structure of the company can easily be easily classified into three sectors, specifically, chemical, upstream and downstream. ExxonMobil is geographical scattered in various parts of globe, namely Europe, America, Australia, Australia and Asia-pacific. Currently company is selling its products and services under several brand names like Mobil, Exxon and Esso.

Financial Performance

To identify the financial health of ExxonMobil, data of four years from 2009 to 2012 is considered in order to understand how well company is generating its revenue after the deployment of heavy equipment and operating systems.A number of tools are present to measure the financial performance, but for this case I am taking main items from the income statement and balance sheet so that one can get a helicopter view of business in a snapshot.

Income Statement Performance Indicators

To evaluate or analyze the income and revenue generation ability of ExxonMobil, four main heads of the income statement are considered (ExxonMobil, Summary Annual Report, 2000).

2009

2010

2011

2012

REVENUE

275,564.00

343,997.00

437,637.00

428,376.00

COGS

183,816.00

231,513.00

304,035.00

301,120.00

GROSS PROFIT

91,748.00

112,484.00

133,602.00

127,256.00

NET INCOME

19,280.00

30,460.00

41,060.00

44,880.00

(Amount is in million $)

After analyzing the table we can say that the company is performing like an outlier, its net income is increasing on a yearly basis which is a very good sign for the investors.

The graph given above is showing a competitive view of all four heads of the income statement across the years. One can see that revenue is highest in the year 2011while net income is greatest in year 2012.

Graph given above is showing the same thing but in a different way to easily grasp the growing or declining performance of ExxonMobil. One can easily comment that everything is in inclination till year 2011, but after 2011 revenues and gross profit are in declining mode while the cost of goods sold becomes constant whereas net income is still in inclining mode.

Balance Sheet Performance Indicators

As far as balance sheet is concerned, data of four years regarding three key elements of the balance sheet is considered. This data is very helpful in assisting stakeholders while making investment decisions ...