A Financial Ratio Quarterly Trend Analysis of Exxon

2489 Words10 Pages
A Financial Ratio Quarterly Trend Analysis of: Exxon Mobil Corporation Stock Symbol: XOM Listed on New York Stock Exchange Prepared for: Dr. Edward Lawrence Department of Finance and Real Estate Florida International University In partial fulfillment of the requirements of Course: FIN 6406 By: Nicole Suarez Panther ID # 1101809 1.0 Introduction ExxonMobil Corporation and its affiliated companies operate in the United States and most other countries. Headquartered in Irvine, TX, ExxonMobil was formed following the merger of Mobil and Exxon. It is the world’s largest publicly traded international Oil and Gas Company. They hold an industry-leading inventory of global oil and gas resources. They are…show more content…
Return on equity is stable throughout the year as well. Both profit margin and basic earnings power are stable. Regarding earnings per share, there is a slight increase in Q2 and then a continual decrease in Q3 and Q4. This is a result of a decrease in the average number of common shares. The following table represents the debt ratios for ExxonMobil for FY 2011: Debt Ratios | Q1 | Q2 | Q3 | Q4 | Annual | Total Debt | .51 | .50 | .50 | .51 | .51 | Interest Coverage | 653.31 | 414.76 | 191.61 | 223.25 | 296.08 | Debt/Equity | 1.07 | 1.06 | 1.04 | 1.10 | 1.10 | Total debt ratio remained stable in all periods in 2011 and is below 1:1, which is a good indication of the company maintaining its leverage. Interest coverage ratio shows a downward trend in Q2 and Q3 with a slight increase in Q4. These results are derived from an increase in interest expense. These changes are not very significant to the success of the business as the company’s ratio is well above 1.5, which implies the company is not burdened by its debt expenses. Debt/Equity ratio remained stable in all periods with a slight increase in Q4 as a result of increased liabilities. The following table represents the market ratios for

More about A Financial Ratio Quarterly Trend Analysis of Exxon

Get Access