Exxon versus Chevron Essay

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Exxon versus Chevron Leanna Rigney ACC 303 Benson Kariuki-Mwangi Strayer University 02-28-2015 Exxon versus Chevron Compare and contrast the limitations and usefulness of the single-step income statement and the multi-step income statement. The single-step income statement shows a company’s net profit or net loss in a single mathematical equation. This statement does not separate income and expenses. This is useful when showing financial information to individuals who only need or want to see the end result. The single-step income statement is short and to the point. It is also less time consuming to prepare and more easily understood. The major drawback of the single-step income statement is the lack of information…show more content…
9.58% 11.01% 11.58% Royal Dutch Shell PLC 5.73% 7.84% 8.91% Operating Profit Margin, Sector Integrated Oil & Gas 7.82% 8.88% 10.03% Operating Profit Margin, Industry Oil & Gas 8.37% 9.20% 10.08% 2013 Calculations Operating profit margin = 100 × Operating income ÷ Sales and other operating revenues = 100 × 27,213 ÷ 220,156 = 12.36% Chevron Corp., Gross Profit Margin Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Selected Financial Data (USD $ in millions) Gross profit 52,341 59,244 64,714 Sales and other operating revenues 220,156 230,590 244,371 Gross profit margin 23.77% 25.69% 26.48% 2013 Calculations Gross profit margin = 100 × Gross profit ÷ Sales and other operating revenues = 100 × 52,341 ÷ 220,156 = 23.77% Between the Exxon and Chevron companies, Chevron proves to be more profitable than Exxon since Chevron shrunk less in
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