Balance sheet of ExxonMobil

Résumé du document

I preferred to analyze the company ExxonMobil as it is one of the biggest petroleum companies in the world. With a net income of 45.22 billon dollars in 2008, ExxonMobil realized the biggest net income in the World. The company represents 2% of NYSE capitalization.
ExxonMobil is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company. The company has 38 oil refineries in 21 countries constituting a capacity of 6.3 million barrels per day, and 42,000 service stations in 100 countries under the brands Exxon, Esso, and Mobil. The company has the major petroleum reserve for a private company with 22.4 billion barrels.
We can say that ExxonMobil is an extraordinary company with many aspects to consider. To obtain the best approach, we will analyze the concepts that are important to the company. In the second part, we will study the balance sheet of the company and in the third part, we will analyze its income statement. Finally, in the fourth part, we will study its cash flow balance.

Extraits

[...] Conclusion The income statement analysis shows an ideal situation for ExxonMobil. We can see that the turnover has increased by in two years; the collection period has decreased, and the company has improved its inventory management. However, despite a net extraordinary net profit about it has decreased by 1 point between 2006 and 2008. This decrease is due to an increase of the cost of goods sold. In consequence, the income statement of ExxonMobil is very good, but shows an increase in the cost of goods sold. [...]

[...] Thus, despite an increase of its cost of goods sold, the company is the only one oil company which generated 10% in profit margin. From balance sheet perspective, ExxonMobil has an excellent position as its competitors. There are not insolvency risks. Moreover, the company has succeeded in improving its collection period. As a result, we can affirm that ExxonMobil is an excellent company with strong financial position. However, the company should invest more to anticipate the future oil shortage, and improve its brand image. [...]

[...] To compare, Saudi Aramco is four times larger than ExxonMobil in terms of turnover. In the gas industry, the company competes with the Russian State. Moreover, the company has some private competitors like Total, Shell and BP. One of the biggest private company in petroleum and gas sectors[3] ExxonMobil is directly in competition with Shell, Total, and BP. With a turnover of 443 billion dollars, the company has the second largest turnover after Shell (458B$). However, the company has positioned above BP Chevron (263B$) and Total (234B£). [...]

[...] Moreover, it should check the cost of goods sold to keep its excellent profit margin. Bibliography wikipedia. (2009). ExxonMobil. Récupéré sur www.wikipedia.org: http://en.wikipedia.org/wiki/ExxonMobil wikipedia. (2009). ExxonMobil. Récupéré sur www.wikipedia.org: http://fr.wikipedia.org/wiki/ExxonMobil Wikipedia.org. (2009). Futur Global 500 (2008). Récupéré sur wikipedia.org: http://fr.wikipedia.org/wiki/Fortune_Global_500_(2008) Yahoo. (2009). Exxon Mobil Corp - Balance Sheet . [...]

[...] Income Statement Analysis Income Statement Analysis Thanks to this analysis, we can see that the turnover of the company has increased by since 2006. In the same period, the profit has increased by Thus, the profit has increased slower than the net sales. This difference is due to the cost of goods sold that has increased by in two years. In consequence, ExxonMobil has a great growth with a turnover in increase. However, the profit does increase slower because the cost of goods sold has increased. ExxonMobil must be careful to its cost of goods sold that decreases its net profit margin. [...]