Stock Analysis on Net

Exxon Mobil Corp. (NYSE:XOM)

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Exxon Mobil Corp., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Operating Assets
Total assets 376,317 369,067 338,923 332,750 362,597
Less: Cash and cash equivalents 31,539 29,640 6,802 4,364 3,089
Operating assets 344,778 339,427 332,121 328,386 359,508
Operating Liabilities
Total liabilities 163,779 166,594 163,240 168,620 163,659
Less: Notes and loans payable 4,090 634 4,276 20,458 20,578
Less: Long-term debt, excluding due within one year 37,483 40,559 43,428 47,182 26,342
Operating liabilities 122,206 125,401 115,536 100,980 116,739
 
Net operating assets1 222,572 214,026 216,585 227,406 242,769
Balance-sheet-based aggregate accruals2 8,546 (2,559) (10,821) (15,363)
Financial Ratio
Balance-sheet-based accruals ratio3 3.91% -1.19% -4.87% -6.54%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Chevron Corp. 5.21% 0.03% -3.43% 2.95%
ConocoPhillips 10.61% -5.86% 44.50% -6.11%
Marathon Petroleum Corp. -3.17% 3.53% -23.90% -13.70%
Occidental Petroleum Corp. -0.56% 3.65% -11.15% -27.81%
Pioneer Natural Resources Co. 4.98% 2.00% 62.10% -2.06%
Valero Energy Corp. 7.13% 8.66% -4.76% 4.56%
Balance-Sheet-Based Accruals Ratio, Sector
Oil, Gas & Consumable Fuels 4.21% 0.14% -0.49% -6.14%
Balance-Sheet-Based Accruals Ratio, Industry
Energy 4.34% 0.29% -0.47% -7.53%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net operating assets = Operating assets – Operating liabilities
= 344,778122,206 = 222,572

2 2023 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2023 – Net operating assets2022
= 222,572214,026 = 8,546

3 2023 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 8,546 ÷ [(222,572 + 214,026) ÷ 2] = 3.91%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Exxon Mobil Corp. deteriorated earnings quality from 2022 to 2023.

Cash-Flow-Statement-Based Accruals Ratio

Exxon Mobil Corp., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income (loss) attributable to ExxonMobil 36,010 55,740 23,040 (22,440) 14,340
Less: Net cash provided by operating activities 55,369 76,797 48,129 14,668 29,716
Less: Net cash used in investing activities (19,274) (14,742) (10,235) (18,459) (23,084)
Cash-flow-statement-based aggregate accruals (85) (6,315) (14,854) (18,649) 7,708
Financial Ratio
Cash-flow-statement-based accruals ratio1 -0.04% -2.93% -6.69% -7.93%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Chevron Corp. 0.58% -1.22% -4.57% -5.42%
ConocoPhillips 5.11% -1.56% -0.78% -8.78%
Marathon Petroleum Corp. -2.72% -4.94% 14.35% -11.70%
Occidental Petroleum Corp. -1.30% 2.84% -13.52% -29.21%
Pioneer Natural Resources Co. 4.22% 0.31% -15.35% -4.41%
Valero Energy Corp. 4.40% 5.69% -9.15% 0.18%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Oil, Gas & Consumable Fuels 0.75% -1.43% -4.66% -9.34%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Energy 0.77% -1.19% -4.76% -10.60%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -85 ÷ [(222,572 + 214,026) ÷ 2] = -0.04%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Exxon Mobil Corp. improved earnings quality from 2022 to 2023.