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Brief Summary of a Company: Exxon Mobil Corporation
The company selected for conducting financial analysis is Exxon Mobil, a multinational gas and oil company. The firm is based in the United States and has its headquarters in Irving, Texas. The method used to analyze Exxon Mobils financial health is financial ratios while considering the companys operating efficiency, profitability, solvency, and liquidity (Reuben, 2018). These aspects provided a clear picture of its financial status, thereby what its financial future looks like. The results were obtained as follows. The company has, over the years, landed massive figures that have beat projections by financial analysts. As of 2021, Exxon Mobil had an operating cash flow of about 9.3 billion US dollars and reduced its debt by about four billion US dollars. The company has also kept its 2021 spending within the projected values, between 16 billion and 19 billion US dollars. The firm has also solidified its balance sheet by lowering debt. The company is also committed to making investments that will further sustain its financial health and help it achieve its goals. This will be done by taking advantage of opportunities and projects to promote its growth.
From the financial analysis done on the...…to promote its growth plan. Coupling this with a favorable business environment should help to increase the companys cash flow and support its earnings.
Moreover, its net cash flow is still projected to increase as the company grows its net sales annually. Looking at the billions of dollars required for the companys operations, the company is not expected to have any challenges with obtaining financing for the same. The recommendations made for the company included implementing strategies that would help to reduce the debt and also make investments in promising projects that would help to increase its profitability and prevent bankruptcy in…
Reference
Reuben, A. (2018). The Wall Street MBA: Your Personal Crash Course in Corporate Finance.
Exxon Mobil The majority of Exxon Mobil's assets are tangible assets. The company held nearly $200 billion in property, plant and equipment as of December 31, 2010 and this represents two-thirds of the company's assets. Most of the other assets that Exxon Mobil has are investments, receivables, inventory and cash. Goodwill and other intangible assets do not even register on the company's balance sheet. The net income from 2010 was $30.46 billion
Additionally the company is increasingly concerned with meeting the energy needs of people and organizations throughout the world ("Company Profile"). To this end Exxon Mobil is committed to "exploration and production of crude oil and natural gas; the manufacture of petroleum products; and the transportation and sale of crude oil, natural gas, and petroleum products ("Company Profile")." In addition Exxon Mobile is a primary producer and marketer of both commodity
Exxon Mobil has the United States as its home country, although the company operates globally. The U.S. remains an important source of fuel, and perhaps the company's biggest retail market. The legal and political environment is very favorable in the United States for Exxon Mobil. In general, oil companies receive a tremendous array of subsidies, often granted by politicians who have received large contributions from fossil fuel companies (Carrington &
Exxon Mobil The seven staircases are maximizing existing customers, attracting new customers, innovation of product and services, innovation of value delivery system, improving industry revenue, geographic expansion and stepping out into new business areas (Mckinsey, no date). Exxon Mobil has seen steep declines in its revenues in the past few years, falling from $438 billion in 2013 to $268 billion in 2015 (2015 Exxon Mobil Annual Report). This does not mean
Community and society are a couple of stakes in the above array of stakeholders that a business is obligated towards directly. Charity schools and hospitals would be a part of direct responsibility to these two stakes but only partly and not completely. Exxon has failed to realize its obligations to the society in which it exists and so issues became so intense that Exxon Mobil had to suspend its
These unwavering expectations provide the foundation for our commitments to those with whom we interact: " (JLP, 2005). Financial Goals ExxonMobil does not explicitly state its financial goals. This is proprietary information that is not published. However, ExxonMobil does suggest that it intends to keep up with global demand. ExxonMobil is focused on long-term growth, rather than short-term gains. One could expect the financial goals of the company to include a