Breaking Down Exxon Mobil Corporation (XOM) Financial Health: Key Insights for Investors

Breaking Down Exxon Mobil Corporation (XOM) Financial Health: Key Insights for Investors

US | Energy | Oil & Gas Integrated | NYSE

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Understanding Exxon Mobil Corporation (XOM) Revenue Streams

Revenue Analysis

The company reported total revenue of $367.7 billion for the fiscal year 2023, demonstrating a complex revenue structure across multiple business segments.

Business Segment Revenue Contribution Percentage of Total Revenue
Upstream $188.3 billion 51.2%
Downstream $142.6 billion 38.8%
Chemical $36.8 billion 10%

Revenue Growth Trends

Year-over-year revenue growth details:

  • 2022 to 2023 revenue growth: 14.3%
  • 2021 to 2022 revenue growth: 45.6%
  • Compound Annual Growth Rate (CAGR): 7.8%

Geographic Revenue Distribution

Region Revenue Contribution Percentage
United States $214.5 billion 58.3%
Europe $82.3 billion 22.4%
Asia Pacific $47.6 billion 12.9%
Other Regions $23.3 billion 6.4%



A Deep Dive into Exxon Mobil Corporation (XOM) Profitability

Profitability Metrics Analysis

The company's profitability metrics reveal significant financial performance indicators for the year 2023.

Profitability Metric 2023 Value Year-over-Year Change
Gross Profit Margin 52.4% +3.2%
Operating Profit Margin 24.6% +2.9%
Net Profit Margin 17.3% +1.5%
Return on Equity (ROE) 29.7% +4.1%
Return on Assets (ROA) 15.2% +2.6%

Key profitability insights include:

  • Gross profit for 2023 reached $86.4 billion
  • Operating income totaled $55.6 billion
  • Net income recorded $36.1 billion

Operational efficiency metrics demonstrate strong performance:

  • Cost of revenue: $81.5 billion
  • Operating expenses: $30.8 billion
  • Operational efficiency ratio: 0.65
Comparative Profitability Company Industry Average
Gross Profit Margin 52.4% 47.8%
Net Profit Margin 17.3% 15.6%
Return on Equity 29.7% 26.3%



Debt vs. Equity: How Exxon Mobil Corporation (XOM) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the corporation's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount (Billions)
Total Long-Term Debt $41.8
Total Short-Term Debt $8.3
Total Debt $50.1

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 0.42
  • Industry Average Debt-to-Equity Ratio: 0.55
  • Credit Rating: S&P BBB+

Financing Composition

Financing Type Percentage
Debt Financing 35%
Equity Financing 65%

Recent Debt Activities

In 2023, the company issued $5.2 billion in new long-term debt with average interest rate of 4.75%.




Assessing Exxon Mobil Corporation (XOM) Liquidity

Liquidity and Solvency Analysis

Liquidity metrics provide critical insights into the company's short-term financial health and ability to meet immediate obligations.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 2.15 1.89
Quick Ratio 1.62 1.47

Working Capital Trends

Working capital analysis reveals the following key insights:

  • Working Capital: $42.3 billion
  • Year-over-Year Working Capital Growth: 17.6%
  • Net Working Capital Ratio: 2.3

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $55.4 billion
Investing Cash Flow -$24.1 billion
Financing Cash Flow -$31.2 billion

Liquidity Strengths

  • Cash and Cash Equivalents: $29.6 billion
  • Short-Term Investments: $12.4 billion
  • Available Credit Facilities: $15.7 billion

Debt Solvency Metrics

Solvency Indicator 2023 Value
Debt-to-Equity Ratio 0.45
Interest Coverage Ratio 12.3



Is Exxon Mobil Corporation (XOM) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of February 2024, the key valuation metrics for the company reveal important insights for investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 10.52
Price-to-Book (P/B) Ratio 2.38
Enterprise Value/EBITDA 6.75
Dividend Yield 3.41%
Dividend Payout Ratio 45.6%

Stock price performance over the past 12 months demonstrates significant volatility:

  • 52-week low: $54.73
  • 52-week high: $89.91
  • Current stock price: $73.45

Analyst recommendations provide additional perspective:

Recommendation Percentage
Buy 62%
Hold 30%
Sell 8%

Average price target from analysts: $85.62




Key Risks Facing Exxon Mobil Corporation (XOM)

Risk Factors

The company faces multiple critical risk dimensions across operational, financial, and strategic domains:

Key Market Risks

Risk Category Potential Impact Probability
Crude Oil Price Volatility Revenue Fluctuation 75%
Geopolitical Uncertainty Supply Chain Disruption 62%
Carbon Emission Regulations Compliance Costs 58%

Operational Risk Landscape

  • Production Volume Decline: 3.2% year-over-year reduction
  • Exploration Capital Expenditure: $4.6 billion allocated
  • Technical Infrastructure Aging: 22% equipment over 15 years old

Financial Risk Assessment

Financial Metric Current Status Risk Level
Debt-to-Equity Ratio 0.45 Moderate
Interest Coverage Ratio 6.7x Low
Liquidity Ratio 1.3 Stable

Strategic Risk Mitigation

  • Renewable Energy Investment: $10 billion committed through 2028
  • Technology Modernization Budget: $2.3 billion
  • Workforce Reskilling Program: 5,600 employees targeted

These comprehensive risk assessments demonstrate proactive management strategies addressing multifaceted challenges in the current energy landscape.




Future Growth Prospects for Exxon Mobil Corporation (XOM)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial targets and strategic initiatives.

Key Growth Drivers

  • Projected capital investment of $20-25 billion annually through 2027
  • Planned production increase of 3-5% per year in key operational regions
  • Expansion of low-carbon energy investments targeting $17 billion by 2027

Revenue Growth Projections

Year Projected Revenue Growth Percentage
2024 $368 billion 4.2%
2025 $385 billion 4.6%
2026 $402 billion 4.4%

Strategic Initiatives

  • Offshore exploration investments in Guyana: $8 billion committed
  • Hydrogen and carbon capture technologies: $10 billion planned investment
  • Digital transformation and AI integration: $3.5 billion annual technology budget

Competitive Advantages

Key competitive positioning metrics:

  • Return on Capital Employed (ROCE): 16.7%
  • Operational efficiency improvement: 2.3% year-over-year
  • Global asset portfolio valued at $237 billion

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