Financial analysis of ExxonMobil

Résumé du document

The Financial analysis of ExxonMobil: ExxonMobil is one of the rare modern companies which were already involved in activities related to the oil industry in the nineteenth century. Besides the Benelux countries, the roots of the current organization are in Antwerp and Rotterdam. In the United States, John D. Rockefeller had created the Standard Oil Company in 1882, which was the legal predecessor of current ExxonMobil. Three commercial firms, Horstmann & Co. in Rotterdam, Frederic Speth & Co., and Graf & Maquinay in Antwerp, imported paraffin oil from the Standard Oil via the firm Stursberg, an intermediary of businesses at the time. In March 11th, 1891, these five companies created a new association, American Petroleum Company (APC), which had one office in Antwerp and the other in Rotterdam. The three firms of importation shared their tankers, their installations of storage and their offices.

Extraits

[...] The shareholder's interest and Dividend per share ratio One can see that these figures are in constant increases. That is due to the increase in the benefit after taxes. The company with benefit in rise and already making profitable these investments thus the company can be allowed to redistribute this benefit. One can see that these figures are in constant increases. That is due to the increase in the benefit after taxes. The benefit of the company increase. The investments are rentable. The company can distribute the result between the shareholders. [...]

[...] During this year Exxon made investments in Angola. When we can see it the profit margin is in constant increasing. This increase is the consequence of the climb of prices of the barrel of petrol. Concerning the return on Capital Employed (ROCE), I used the following formula: ROCE= operating profit / Capital employed The capital employed = Fixed assets + current assets current liabilities As we will see it Exxon is a company which goes well and that on multiple points. [...]

[...] However, it appears essential to note that these data take into account the found oil figures. Found oil is not proven oil. I.e. the figures given previously come only from the Exxon Company and do not have been checked by an other authorities. It happened in the past that certain oil companies voluntarily increased their reserves found with an aim of keeping the shareholders' confidence. Management Financial structure of the company The capital of the company is USD divided in shares. It is the oil company with the most capitalized to the world. [...]

[...] The main problem is to know if the investors will continue to invest in this type of company, of the companies which are likely to become less and less profitable because of the exhaustion of the resources. To better be able to understand the investors, it is important to see the financial health of the company, but also to see the strategy of the group. Executive summary The Exxon group is a group which is very well. The results are very good. And the results are better each year. The group is very active. [...]

[...] There are also photographs of landscape of oil reservoirs. With these landscapes, one can think that Exxon is respectful environment. This annual report is very important means of communication. With regard to the presentation, one can see that the report includes images colours. There are also explanations on the strategy of the group, all the strategy of the group is explained by the director of Exxon Mobil. The strategy of the group takes a very important place. In this strategy Exxon explains the importance of sustainable development, and the implication of Exxon in the respect of sustainable development This annual report is very complete and is very coloured. [...]