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8/7/2019 analysis inc

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Particulars2005 2006 2007 2008 2009

OPERATING INCOME

Sales & other operating revenue 358955 365467 390328 459579 301500

OPERATING EXPENSES

Crude oil & other product purchase 185219 182546 199498 249454 152806

Production & Other mfg expenses 26819 29528 31885 37905 33027

Selling & other administrativeexpenses

14402 14273 14890 15873 14735

Depreciation & depletion 10253 11416 12250 12379 11917

Exploration expense, including dryholes

964 1181 1469 1451 2021

Sales based taxes 30742 30381 31728 34508 25936

Other taxes & duties 41554 39203 40953 41719 34819

OPERATING INCOME (LOSS) 49002 56939 57655 66290 26239

Non-operating income

Income from equity affiliates 7583 6985 8901 11081 7143

Other income 4142 5183 5323 6699 1943

EARNING BEFORE INTEREST &TAXES

60727 69107 71879 84070 35325

Interest expenses 496 654 400 673 548

Income before income tax 60231 68453 71479 83397 34777

Income tax 23302 27902 29864 36530 15119Net income including non-controlling interest

36929 40551 41615 46867 19658

Minority or non-controlling interest 799 1051 1005 1647 378

Net income 36130 39500 40610 45220 19280


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0

10000

20000

30000

40000

50000

2005 2006 2007 2008 2009

Net Income

Net Income


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Statement of financial position, assets

Assets 2005 2006 2007 2008 2009

Cash 28671 28244 33981 31437 10693

Cash & cash equivalent restricted 4604 4604

Marketable securities 519 570 169

Trade receivable & account receivables 23858 25076 30775 18707 22186

Other notes & accounts receivables 3626 3866 5675 5995 5459

Inventories 9321 10714 11089 11646 11553

Other current assets 3262 3273 3924 3911 5175

Total current assets 73342 75777 85963 72266 55235

Companies at equity in underlyingassets

17696 20382 22053 22030 24411

Companies carried at cost & stockinvestment at fair value

1732 1678 1647 1636 1577

Long-term receivables 1164 1177 4494 4890 5677

Plant, property & equipment(net) 107010 113687 120869 121346 139116

Other assets including, intangibleassets(net)

7391 6314 7056 5884 7307

Total noncurrent assets 134993 143238 156119 155786 178088

Total assets 208335 219015 242082 228052 233323


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Statement of financial position ,liabilities & stockholders equity

Liabilities & stock holders equity 2005 2006 2007 2008 2009

Notes payable & loans payable 1771 1702 2383 2400 2476

Trade payables 22788 25084 29239 21190 24236

Payable to equity companies 2451 2597 3556 3552 4979

Accrued taxes & other income taxes 5607 6052 6485 5866 5921

Other account payable & accruedliabilities

5274 5349 5995 6035 6139

Income taxes payable 8416 8033 10654 10057 8310

Total current liabilities 46307 48817 58312 49100 52061

long-term debt 6220 6645 7183 7025 7129

Post retirement benefit reserve 10220 13931 13278 20729 17942

Accrued liabilities 6434 7116

Deferred income tax liabilities 20878 20851 22899 19726 23148

Other long term obligation 3563 4007 14366 13949 17651

Total noncurrent liabilities

47315 52550 57726 61429 65870


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Liabilities & stock holdersequity

2005 2006 2007 2008 2009

Common stock with out parvalue

4477 4786 4933 5314 5503

Earnings reinvested 163335 195207 228518 265680 276937

Cummalative foreign exchangetransaction

979 3733 7972 1146 4402

Post retirement benefitsreserves adjustment

(2258) (6495) (5983) (11077) (9863)

Common stock held in treasury (55347) (83387) (113678) (148098) (166410)

EXXON MOBIL SHARE OFEQUITY

111186 113844 121762 112965 110569

Non-controlling interests 3527 3804 4282 4558 4823

Total equity 114713 117648 126044 117523 115392

Total liabilities & equity 208335 219015 242082 228052 233323


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RatiosShort term solvency(operating)

y Inventory turnover ratio

Particulars 2005 2006 2007 2008 2009

Sales 358955 365467 390328 459579 301500

Inventory 9321 10714 11089 11646 11553

Inventory turnover off Exxon 38.51 34.11 35.20 39.46 26.10

Inventory turnover measures how quickly the company is moving merchandise through the

warehouse to customers. the smaller number of days, the more efficient a company - inventory is

held for less time and less money is tied up in inventory.

Inventory turnover ratio of Exxon Mobil. Improved in the year 2008 from 2007 as therewas increase in sales. but it has declined in the year in 2009 which is not good from thecompanies point of view

0

10

20

30

40

2005 2006 2007 2008 2009

Inventory turnover

Inventory turnover


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yReceivable turnover ratio

Particulars 2005 2006 2007 2008 2009

Sales 358955 365467 390328 459579 301500

Trade receivables 23858 25076 30775 18707 22186

Receivable turnover of Exxon 15.05 14.57 12.68 24.57 13.59

Accounts receivable is the money that is currently owed to a company by its customers.If a

company's collection period is growing longer, it could mean problems ahead. The quicker a

company gets its customers to make payments, the sooner it has cash to pay for salaries,

merchandise and equipment, loans and, best of all, dividends and growth opportunities .

0

5

10

15

20

25

2005 2006 2007 2008 2009

Receivable turnover ratio

Receivable turnover ratio


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yPayable turnover

Particulars 2005 2006 2007 2008 2009

Sales 358955 365467 390328 459579 301500

Trade payable 22788 25084 29239 21190 24236

payable turnover of Exxon 15.75 14.57 13.35 21.69 12.44

0

5

10

15

20

25

2005 2006 2007 2008 2009

Payable turnover ratio

Payable turnover ratio


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Working capital turnoverParticulars 2005 2006 2007 2008 2009

Sales 358955 365467 390328 459579 301500

Working capital 10391 10706 12625 9163 9503

Working capital turnover ratioOf ExxonMobil

34.54 34.14 30.92 50.16 31.73

0

10

20

30

40

50

60

2005 2006 2007 2008 2009

Working capital turnover ratio

Working capital turnover ratio


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Average inventory processingParticulars 2005 2006 2007 2008 2009

Inventory 38.51 34.11 35.20 39.46 26.10

Average inventory processingperiod

9 11 10 9 14

0

5

10

15

2005 2006 2007 2008 2009

Average inventory processing period

Average inventory processing

period


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Average receivables collection periodParticulars 2005 2006 2007 2008 2009

Receivable 15.05 14.57 12.68 24.57 13.59

Average receivable collectionperiod

24 25 29 15 27

0

5

10

15

20

25

30

2005 2006 2007 2008 2009

Average receivable collection period

Average receivable collection

period


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Operating cycleParticulars 2005 2006 2007 2008 2009


9 11 10 9 14

Average receivable collectionperiod

24 25 29 15 27

Operating cycle (no.of.days) 33 36 39 24 41

0

10

20

30

40

50

2005 2006 2007 2008 2009

Operating cycle

O

erati g cycle


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Average payables payment period

Particulars 2005 2006 2007 2008 2009

Payable turnover 15.75 14.57 13.35 21.69 12.44

Average payable 23 25 27 17 29

0

10

20

30

2005 2006 2007 2008 2009

Average payable payment period

Average payable payment

period


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Ratios short term (operating)

Ratio (summary)

Ratios 2005 2006 2007 2008 2009

Turnover

Inventory turnover 38.51 34.11 35.20 39.46 26.10

Receivables turnover 15.05 14.57 12.68 24.57 13.59

Payables turnover 15.75 14.57 13.35 21.69 12.44

Working capital turnover 34.54 34.14 30.92 50.61 31.73

0

10

20

30

40

50

60

2005 2006 2007 2008 2009

Inventory turnover

Receivable turnover

Payable turnover

Working capital turnover


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Cash conversion cycle

Particulars 2005 2006 2007 2008 2009


9 11 10 9 14

Add:-Average receivables 24 25 29 15 27

Operating cycle 34 36 39 24 41

Less:-Average payable 23 25 27 17 29

Cash conversion cycle 11 11 12 7 12

0

24

6

8

10

12

2005 2006 2007 2008 2009




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LONG TERM (INVESTMENT) ACTIVITY ANALYSIS Net fixed asset turnover

Particulars 2005 2006 2007 2008 2009

Sales 358955 365467 390328 459579 301500

Plant ,property & equipment 107010 113687 120869 121346 139116

Net fixed asset turnover ratio 3.35 3.21 3.23 3.79 2.17

0

1

2

3

4

2005 2006 2007 2008 2009

Net fixed asset turnover ratio

Net fixed asset turnover ratio


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Total asset turnover ratio

Particulars 2005 2006 2007 2008 2009

Sales 358955 365467 390328 459579 301500

Total assets 208335 219015 242082 228052 233323

Total asset turnover ratio 1.72 1.67 1.61 2.02 1.29

0

0.5

1

1.5

2

2.5

2005 2006 2007 2008 2009




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Equity turnover ratio = sales share holder equity

Particulars 2005 2006 2007 2008 2009

Sales 358955 365467 390328 459579 301500

ExxonMobil shares of equity 111186 113844 121762 112965 110569

Equity turnover ratio 3.23 3.21 3.21 4.07 2.73

0

1

2

3

4

5

2005 2006 2007 2008 2009

Equity turnover ratio

Eq ity t r

ver rati


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Long term (investment) activity analysis

Ratios summary:Particulars 2005 2006 2007 2008 2009

Net fixed asset turnover 3.35 3.21 3.23 3.79 2.17

Total asset turnover 1.72 1.67 1.61 2.02 1.29

Equity turnover 3.23 3.21 3.21 4.07 2.73


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Liquidity ratios :

Current ratioParticulars 2005 2006 2007 2008 2009

Total current assets 73342 75777 85963 72266 55235


Current ratio of ExxonMobil 1.58 1.55 1.47 1.47 1.06

Current ratio is defined as the relationship between the current assets & current liabilities. Thusthe two basic concept of current ratio are

yCurrent assets

yCurrent liabilitiesCurrent assets include debtors, bill receivable, inventory pre-paid expenses etcCurrent liabilities include creditors, bills payable, bank overdraft etc

Ansignificant current ratio is 2:1 ratio. Thus this is also known as 2:1 ratio. The current ratio of

Exxon Mobil in the year 2005 was 1.58 which is less than the standard ratio.it has declined to1.06 in the year 2009 which is very less. It indicates danger signal to the management

0

1

2

2005 2006 2007 2008 2009

Current ratio

Current ratio


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Quick ratio = quick assets current liabilitiesParticulars 2005 2006 2007 2008 2009

Cash & cash equivalents 28671 28244 33981 31437 10693

Cash & cash equivalentsrestricted

4604 4604


Trade notes & accountsreceivables

23858 25076 30775 18707 22186

Other notes & accountsreceivable 3626 3866 5675 5995 5459

Total quick assets 60759 61790 70950 56709 38507


Quick ratio of ExxonMobil 1.31 1.27 1.22 1.15 0.74

0

0.5

1

1.5

2005 2006 2007 2008 2009

Quick ratio

Quick ratio


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Cash ratio: total cash assets current liabilities

Particulars 2005 2006 2007 2008 2009

Cash & cash equivalents 28671 28244 33981 31437 10693

Cash & cash equivalentsrestricted

4604 4604


Total cash assets 33275 32848 34500 32007 10862


Cash ratio of ExxonMobil corp. 0.72 0.67 0.59 0.65 0.21


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Long-term debt & solvency analysis

Debt to equity = debt equity

Particulars 2005 2006 2007 2008 2009

Notes & loans payable 1771 1702 2383 2400 2476

Long term debt 6220 6645 7183 7025 7139

Total debt 7991 8347 9566 9425 9605

ExxonMobil share of equity 111186 113844 121762 112965 110569

Debt to equity of ExxonMobil

corp.

0.07 0.07 0.08 0.08 0.09

Debt to equity ratio measures ultimate solvency of a concern. It provides a margin of safety tothe creditors. Thus the smaller the ratio the more secure is the creditors. an appropriate debt-

equity ratio is 0.33 . A ratio higher than this is an indication of risky financial policies.

In the year 2005 the Debt equity ratio was 0.07 & In the year 2009 it was 0.09.which is smallerthan the standard. It shows the positive signs for the company

Debt to capital ratio = debt capital


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Particulars 2005 2006 2007 2008 2009

Notes & loans payable 1771 1702 2383 2400 2476

Long term debt 6220 6645 7183 7025 7139

Total debt 7991 8347 9566 9425 9605


Total capital 119177 122191 131328 122390 120714

Debt to capital ratio ofExxonMobil corp.

0.07 0.07 0.07 0.08 0.08

Interest coverage ratio = EBIT interest expenses


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Particulars 2005 2006 2007 2008 2009

EBIT 60727 69107 71879 84070 35325

Interest expenses 496 654 400 673 548

Interest coverage of ExxonMobil 122.43 105.67 179.70 124.92 64.46

Interest coverage ratio measures the number of times interest is covered by the profits availableto pay the charges. This ratio is used to test the debt servicing capacity of a concern. Generally

higher the ratio, the more safe are the long term creditors.

Interest coverage ratio of Exxon Mobil was 122.43 in the year 2005 & in the year 2007 itreached to its maximum level at 179.70 as there was increase in profits & decline in interest

expenses. But it was detroted in the year 2009 declined up to 64.46.This is not sufficient for thefirm. It has to increase its Interest coverage ratio to be strong financial frim


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Ratios (Summary)Long-term debt & solvency analysisParticulars 2005 2006 2007 2008 2009

Debt to equity 0.07 0.07 0.08 0.08 0.09

Debt to capital 0.07 0.07 0.07 0.08 0.08

Interest coverage 122.43 105.67 179.70 124.92 64.46


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Profitability ratiosProfitability is an indication of the efficiency with which the operations of the concern areCarried on. Profit is what is left for shareholders after all the charges have been paid.

Operating profit margin

Particulars 2005 2006 2007 2008 2009

Operating income 49002 56939 57655 66290 26239

Sales 358955 365467 390328 459579 301500

Operating profit margin (%) 13.65 15.58 14.77 14.42 8.70


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Net profit margin = net income salesParticulars 2005 2006 2007 2008 2009

Net income 36130 39500 40610 45220 19280

Sales 358955 365467 390328 459579 301500

Net profit margin (%) 10.07 10.81 10.40 9.84 6.39


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Return on equity = net income shareholders equity

Particulars 2005 2006 2007 2008 2009

Net income 36130 39500 40610 45220 19280


Return on equity (%) 17.34 18.04 16.78 19.83 8.26


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Ratios (summary)Profitability ratios

Particulars 2005 2006 2007 2008 2009

Return on sales (%)

Operating profit margin 13.65 15.58 14.77 14.42 8.70

Net profit margin 10.07 10.81 10.40 9.84 6.39

Return on investment (%)

Return on equity 32.50 34.70 33.35 40.03 17.44

Return on assets 17.34 18.04 16.78 19.83 8.26


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Analysis

Plant, property& equipment :

Depreciation, depletion and amortization, based on cost less estimated salvage value of the asset,

are primarily determined under either the unit-of-production method or the straight-line method,

which is based on estimated asset service life taking obsolescence into consideration.

Maintenance and repairs, including planned major maintenance, are expensed as incurred. Major

renewals and improvements are capitalized and the assets replaced are retired.

Exxon Mobil Corp. uses the successful efforts method to account for its exploration and

production activities. Under this method, costs are accumulated on a field-by-field basis with

certain exploratory expenditures and exploratory dry holes being expensed as incurred. Costs of

productive wells and development dry holes are capitalized and amortized on the unit-of-

production method.

Exxon Mobil Corp. carries as asset exploratory well costs when the well has found a sufficient

quantity of reserves to justify its completion as a producing well and where Exxon Mobil Corp.

is making sufficient progress assessing the reserves and the economic and operating viability of

the project. Exploratory well costs not meeting these criteria are charged to expense.


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Statement of financial position, property, plant and equipment

Particulars 2005 2006 2007 2008 2009

Upstream 148844 163087 178712 168977 198036

Downstream 59338 62392 65841 64618 68092

Midstream 21055 22197 24081 25463 28464

Other 11057 11608 11706 11787 11314

Total P.P.E 240294 259284 280340 270845 305906

Accumulateddepreciation

(133284) (145597) (159471) (149499) (166790)

Plant, property &equipment (net)

107010 113687 120869 121346 139116


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Average age (%) of PPE = depreciation PPE

Particulars 2005 2006 2007 2008 2009

Accumulateddepreciation & depletion

133284 145597 159471 149499 166790

Total P.P.E 240294 259284 280340 270845 305906

Average age (%) 55.47 56.15 56.88 55.20 54.52


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Analysis of debt

-Short term debt

Particulars 2005 2006 2007 2008 2009

Bank loans 790 753 1238 1139 1043

Commercial paper 291 274 205 172 201

Long term debt duewithin one year

515 459 318 368 348

Other notes & loanspayable

175 216 622 721 884

Total notes & loanspayable or short termdebt

1771 1702 2383 2400 2476

long term debt


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Particulars 2009 2008 2007 2006 2005

Total long term debt 7129 7025 7183 6645 6220

-total debt (summary)

Particulars 2009 2008 2007 2006 2005

Short term debt 2476 2400 2383 1702 1771

Total long term debt 7129 7025 7183 6645 6220

Total debt of ExxonMobilcorp.

9605 9425 9566 8347 7991


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valuation ratios

Price to earnings ratio = market price per share E.P.S

Particulars 2009 2008 2007 2006 2005

Share price 65 67.90 89.38 71.68 59.37

E.P.S 4.08 9.15 7.59 6.94 5.92

Price to earnings ratio 15.92 7.42 11.78 10.33 10.03


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Price to operating profit = market price per share operating income

Particulars 2009 2008 2007 2006 2005

No. ofcommonshare stockoutstanding

4721273113 4941630490 5350027205 5693398774 6106332510

Operatingincome

26239 66290 57655 56939 49002

Operatingprofit pershare

5.56 13.41 10.78 10.00 8.02

Share price 65 67.90 89.38 71.68 59.37

Price to

operatingprofit ratio

11.70 5.06 8.29 7.17 7.40


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Price to sales = market price per share sales per share

Particulars 2009 2008 2007 2006 2005

No. Ofcommonshare stockoutstanding

4721273113 4941630490 5350027205 5693398774 6106332510

Sales 301500 459579 390328 365467 358955

Sales pershare

63.86 93 72.96 64.19 58.78

Share price 65 67.90 89.38 71.68 59.37

Price to

sales

1.02 0.73 1.23 1.12 1.01


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Price to book value = market price per share book value

Particulars 2009 2008 2007 2006 2005

No. Ofcommonshare stockoutstanding

4721273113 4941630490 5350027205 5693398774 6106332510

EXXONMOBILSHARE OFEQUITY

110569 112965 121762 113844 111186

Book value 23.42 22.86 22.76 20.00 18.21

Share price 65 67.90 89.38 71.68 59.37

Price to

book value

2.78 2.97 3.93 3.58 3.26


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Valuation ratios summary :

Particulars 2009 2008 2007 2006 2005

Price toearningsratio

15.92 7.42 11.78 10.33 10.03

Price tooperatingprofit ratio

11.70 5.06 8.29 7.17 7.40

Price tosales

1.02 0.73 1.23 1.12 1.01

Price tobook value

2.78 2.97 3.93 3.58 3.26

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