Exxon Mobil Corporation (XOM) Bundle
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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