A Financial Ratio Quarterly Trend Analysis of Exxon

A Financial Ratio Quarterly Trend Analysis of: Exxon Mobil Corporation Stock Symbol: XOM Listed on New York Stock Exchange Prepared for: Dr. Edward Lawrence Department of Finance and Real Estate Florida International University In partial fulfillment of the requirements of Course: FIN 6406 By: Nicole Suarez Panther ID # 1101809 1.0 Introduction ExxonMobil Corporation and its affiliated companies operate in the United States and most other countries. Headquartered in Irvine, TX, ExxonMobil was formed following the merger of Mobil and Exxon. It is the world’s largest publicly traded international Oil and Gas Company. They hold an industry-leading inventory of global oil and gas resources. They are†¦show more content†¦Return on equity is stable throughout the year as well. Both profit margin and basic earnings power are stable. Regarding earnings per share, there is a slight increase in Q2 and then a continual decrease in Q3 and Q4. This is a result of a decrease in the average number of common shares. The following table represents the debt ratios for ExxonMobil for FY 2011: Debt Ratios | Q1 | Q2 | Q3 | Q4 | Annual | Total Debt | .51 | .50 | .50 | .51 | .51 | Interest Coverage | 653.31 | 414.76 | 191.61 | 223.25 | 296.08 | Debt/Equity | 1.07 | 1.06 | 1.04 | 1.10 | 1.10 | Total debt ratio remained stable in all periods in 2011 and is below 1:1, which is a good indication of the company maintaining its leverage. Interest coverage ratio shows a downward trend in Q2 and Q3 with a slight increase in Q4. These results are derived from an increase in interest expense. These changes are not very significant to the success of the business as the company’s ratio is well above 1.5, which implies the company is not burdened by its debt expenses. Debt/Equity ratio remained stable in all periods with a slight increase in Q4 as a result of increased liabilities. The following table represents the market ratios forShow MoreRelatedChevron Analysis4464 Words   |  18 Pagesâ€Å"The Chevron Analysis† Instructor: Mr. James McCague Class: FIN 4461 By: Jairo Rivero Company Position Chevron is a world-renowned company that is a leader in the development of energy resources that help drive human progression. The ability to meet the needs of ever-expanding energy consumption is what makes Chevron an innovative and market leading company. When people think of Chevron many think of â€Å"Big Oil†, when in fact, its business strategy is very complex and entails: * ExplorationRead MoreFinancial Research Report Essay3621 Words   |  15 Pagesï » ¿Financial Research Report Marquita Jackson Dr. Glenn Stephens Financial Management – FIN 534 March 4, 2014 Abstract Imagine that you are a financial manager researching investments for your client that aligns with its investment goals. Use the Internet or the Strayer Library to research any U.S. publicly traded company that you may consider as an investment opportunity for your client. The assignment will cover the following topics: Rationale for choosing the company for which to invest Ratio AnalysisRead MoreExxon Mobil Financial Anaysis5230 Words   |  21 PagesDiscussion 5 a. Exxon Mobil Income Statement 5 b. Net Cash Flow 6 c. Net Operating Profit after Tax (NOPAT) 6 d. Operating Cash Flow (OCF) 7 2.1 Balance Sheet Measures and Discussion 8 a. Exxon Mobil Balance Sheet 8 b. Net Operating Working Capital (NOWC) 8 c. Total Operating Capital 10 d. Net Investment in OPC and Gross Investment in OPC 10 2.2 Free Cash Flow (FCF) 11 3. Financial Ratios 12 a. Quick ratio 12 b. Debt to total asset ratio 13 c. TIE ratio 13 d. P/ERead MoreValuation of Integrated Oil Gas Companies Msc Thesis33042 Words   |  133 PagesMSc Thesis: Valuation of Integrated Oil Gas Companies Irakli Menabde Valuation of Integrated Oil Gas Companies A comparative analysis of methodologies and empirical practices MSc Thesis MSc in International Business and Economics: Cand. Merc Finance and Strategic Management (FSM) Copenhagen Business School Date 09/10/2008 Author: Irakli Menabde MSc Thesis: Valuation of Integrated Oil Gas Companies Irakli Menabde Abstract The paper examines a number of empiricallyRead MoreThe New Audit Client Acceptance Decision 13981 Words   |  16 Pagesprovides a true and fair impression of the finances involved in the particular organization, ensuring that preparation of financial statements abide to the International Accounting Standards and other relevant accounting policies. The auditing is done by external auditors who are objective, independent and are knowledgeable to conduct an in-depth investigation to ensure that the financial statements are free from material forgeries and misstatements. External auditing is important as it ensures compliancesRead MoreCompany Valuation Report for Bp20320 Words   |  82 Pagesand Chevron are chosen due to their similarities to BP and they are ranked top two major oil companies among the oil industry. In our report, we have that the identified major issues affecting BP’s financial activities during the past five years are namely: †¢ †¢ †¢ Gulf of Mexico Oil Spill Global Financial Crisis Global Demand of Natural Gas Consumption A computation of DuPont ROE between BP, Chevron and ExxonMobil was analyzed and it was noted that BP’s ROE is generally lower than ExxonMobil andRead MoreExxon Mobile Capstone40455 Words   |  162 Pages....................................................2   Key  Analysis.........................................................................................................................................................................3   Final  Recommendation .......................................................................................................................................................4   2.   EXTERNAL  ANALYSIS...........................................................Read MoreCredit Appraisal20118 Words   |  81 Pagesconsideration while appraising a proposal/project. It includes the methods, process and rules/conditions of appraisal. The theory has been backed up by the case studies which give a proper idea as to what is actually done in the appraisal by looking at the ratios and various projections done by the bank to arrive at a decision. Bank’s work does not end here it keeps on monitoring the account even after providing the advance to look any sort of risk or difficulty that may come in the near future. This wholeRead MoreResources Capabilities20336 Words   |  82 Pagescompetitive power. In fact, these invisible assets are often the only real source of competitive edge that can be sustained over time. —HIROYUKI ITAMI, MOBILIZING INVISIBLE ASSETS You’ve gotta do what you do well. —LUCINO NOTO, FORMER VICE CHAIRMAN, EXXON MOBIL OUTLINE l Introduction and Objectives l The Role of Resources and l Organizational Capabilities Classifying Capabilities The Architecture of Capability l Appraising Resources and Capabilities Establishing Competitive Advantage SustainingRead MoreCapital Structure-Myers12949 Words   |  52 Pagesagainst the costs of possible financial distress. The tradeoff theory predicts moderate borrowing by tax-paying firms. The pecking order theory says that the firm will borrow, rather than issuing equity, when internal cash flow is not sufficient to fund capital expenditures. Thus the amount of debt will reflect the firm s cumulative need for external funds. The free cashpow theory says that dangerously high debt levels will increase value, despite the threat of financial distress, when a firm s