The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin improved from 5.41% in 2019 to 10.45% in 2023.
The average EBIT Margin for the period under analysis was 7.53%, with 2020 and 2022 performing the worst and best, respectively.
In the current year, Exxon Mobil was able to cover its interest liabilities 52.67 times in the current year- compared to 2019 when it was 24.64 times.
The Asset turnover stood at 0.92 times in 2023 from 0.74 in 2019, implying a low performance or Assets of the business in relation to revenue.
Profitability
The revenue of Exxon Mobil has fluctuated year on year. The revenue decreased by -31.49% between 2019 and 2020 and a further 44.83% increase was recorded between 2021 and 2022. There also occurred a decrease of –16.70% between 2022 and 2023 (the current period).
Exxon Mobil’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks strong, as current ratio decreased from 1.41:1 to 1.48:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Exxon Mobil is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 20% in the current year.
