Financial Analysis of ExxonMobil

Paper Info
Page count 2
Word count 638
Read time 3 min
Subject Economics
Type Essay
Language 🇺🇸 US

Assets

The total assets of the company increased from $331,052 million in 2011 to $333,795 million in 2012. The increase in total assets amounted to $2,743 million. This is equivalent to a 0.8286% increase. The table presented below shows the composition of the assets.

2011
$ million
2012
$ million
Change Percentage change
Current assets 72,963 64,460 -8,503 -11.65%
Investments, advances, and long-term receivables 34,333 34,718 385 1.12%
Net property, plant, and equipment 214,664 226,949 12,285 5.72%
Total tangible assets 321,960 326,127 4,167 1.29%
Other assets (intangibles) 9,092 7,668 -1,424 -15.66%

The tangible assets are made up of current assets, investments, and property plants and equipment. The tangible assets increased by $4,167 million (1.29%). The intangible assets decreased by $1,424 million (15.66%). Over 97% of the total assets are made of tangible assets.

Net income

The net income attributable to ExxonMobil was $41,060 million in 2011 and $44,880 million in 2012. This shows that the earnings of the company increased by $3,820 million. The increase is equivalent to 9.3%. The change is positive.

Cash flow

The net change in cash and cash equivalent was $4,839 million in 2011. In 2012, the value was ($3,082 million). This implies that in 2011, the company generated a positive net cash flow from its activities while in 2012 the business used a significant amount of cash flow in its activities. The change between 2011 and 2012 is a decrease (negative) of $7,921 million. The change is equivalent to 163.69% decrease.

Stock price

The table presented below shows the market prices for the shares of the company.

2011 2012 Change Percentage change
High 88.23 93.67 5.44 6.17%
Low 67.03 77.13 10.1 15.07%
Average daily close 79.71 86.53 6.82 8.56%
Year-end close 84.76 86.55 1.79 2.11%

All the four quotations of the share price of the company show that there was an increase in values between the two years. The year-end close value was $84.76 in 2011. In 2012, the value was $86.55. This shows that the stock price rose by $1.79. The increase is equivalent to 2.11%.

Differences between net income and cash flow

The net income is the difference between the revenues earned and the total expenses. On the other hand, a cash flow statement gives information on cash flow used in or generated from the activities carried out by a business. If a company is using a cash basis, then the difference between net income and cash flow are the items that do not involve the movement of cash. However, when using an accrual basis, other items such as inventory, and accounts receivables have to be taken into account. From the financial statements, the items that make the net income and cash flow differ are depreciation and depletion, deferred income tax, postretirement benefits, long-term provisions for obligations, dividends received, noted accounts receivables, inventories, other current assets, and accounts, and other payables.

Cash flow statement

The cash flow statement is divided into three sections so that it can give comprehensive information on the cash flow generated from or used in the three key activities of a business these are, operating, investing, and financing activities. The table presented below gives the balances from the three activities.

2011
$ millions
2012
$ millions
Change Percentage change
Operating 55,345 56,170 825 1.49%
Investing -22,165 -25,601 -3,436 15.50%
Financing -28,256 -33,868 -5,612 19.86%

The cash generated by the company from the core activities increased by $825 million. The increase is equivalent to 1.49%. This can be explained by the increase in revenue. Further, the cash flow used in investing activities increased by $3,436 or 15.50%. The increase was a result of the addition of plant, property, and equipment. Finally, the cash flow used in financing activities increased by $5,612 or 19.86%. The increase was a result of the repayment of the debt, payment of dividends, and purchase of common stock.

Cite this paper

Reference

EduRaven. (2022, April 5). Financial Analysis of ExxonMobil. https://eduraven.com/financial-analysis-of-exxonmobil/

Work Cited

"Financial Analysis of ExxonMobil." EduRaven, 5 Apr. 2022, eduraven.com/financial-analysis-of-exxonmobil/.

References

EduRaven. (2022) 'Financial Analysis of ExxonMobil'. 5 April.

References

EduRaven. 2022. "Financial Analysis of ExxonMobil." April 5, 2022. https://eduraven.com/financial-analysis-of-exxonmobil/.

1. EduRaven. "Financial Analysis of ExxonMobil." April 5, 2022. https://eduraven.com/financial-analysis-of-exxonmobil/.


Bibliography


EduRaven. "Financial Analysis of ExxonMobil." April 5, 2022. https://eduraven.com/financial-analysis-of-exxonmobil/.

References

EduRaven. 2022. "Financial Analysis of ExxonMobil." April 5, 2022. https://eduraven.com/financial-analysis-of-exxonmobil/.

1. EduRaven. "Financial Analysis of ExxonMobil." April 5, 2022. https://eduraven.com/financial-analysis-of-exxonmobil/.


Bibliography


EduRaven. "Financial Analysis of ExxonMobil." April 5, 2022. https://eduraven.com/financial-analysis-of-exxonmobil/.