Financial statement analysis and common stock valuation

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Income Statement

The income statement (statement of earnings) reports on the performance of Exxon Mobil Corp., the result of its operating activities.

Analysis of Revenues

• Revenues as Reported

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about Exxon Mobil Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Exxon Mobil Corp. balance sheet.

Present Value of Free Cash Flow to Equity (FCFE)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• FCFE Growth Rate (g)

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently Exxon Mobil Corp. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Price to FCFE (P/FCFE)

Free cash flow to equity is the cash flow available to Exxon Mobil Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to Equity (FCFE)
• P to FCFE Ratio, Current
• P to FCFE Ratio, Historical

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Exxon Mobil Corp..

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Evaluates revenues and output generated by the Exxon Mobil Corp. assets. Operating performance ratios describe the relationship between the Exxon Mobil Corp. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Working Capital Turnover
• Average Inventory Processing Period