Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Exxon Mobil Corp., ROIC calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 37,855) | 62,749) | 32,736) | (34,098) | 16,404) | |
| Invested capital2 | 307,196) | 297,049) | 272,673) | 273,920) | 303,501) | |
| Performance Ratio | ||||||
| ROIC3 | 12.32% | 21.12% | 12.01% | -12.45% | 5.40% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Chevron Corp. | 9.17% | 19.68% | 10.04% | -5.22% | 0.44% | |
| ConocoPhillips | 15.20% | 28.02% | 13.45% | -5.92% | 12.76% | |
| Marathon Petroleum Corp. | 16.88% | 25.81% | 9.73% | -15.64% | 7.54% | |
| Occidental Petroleum Corp. | 9.72% | 22.25% | 7.26% | -23.53% | -0.80% | |
| Pioneer Natural Resources Co. | 16.60% | 30.31% | 8.67% | -0.88% | 6.44% | |
| Valero Energy Corp. | 15.39% | 27.16% | 12.49% | -4.03% | 10.87% | |
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 NOPAT. See details »
2 Invested capital. See details »
3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 37,855 ÷ 307,196 = 12.32%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Exxon Mobil Corp. ROIC improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Decomposition of ROIC
Exxon Mobil Corp., decomposition of ROIC
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 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2023 year is the decrease in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Exxon Mobil Corp., OPM calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 37,855) | 62,749) | 32,736) | (34,098) | 16,404) | |
| Add: Cash operating taxes2 | 14,713) | 16,789) | 7,904) | 2,695) | 6,170) | |
| Net operating profit before taxes (NOPBT) | 52,567) | 79,538) | 40,640) | (31,403) | 22,573) | |
| Sales and other operating revenue | 334,697) | 398,675) | 276,692) | 178,574) | 255,583) | |
| Profitability Ratio | ||||||
| OPM3 | 15.71% | 19.95% | 14.69% | -17.59% | 8.83% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Chevron Corp. | 13.94% | 22.85% | 15.98% | -8.90% | 4.08% | |
| ConocoPhillips | 29.62% | 36.63% | 29.99% | -13.37% | 31.34% | |
| Marathon Petroleum Corp. | 9.30% | 12.61% | 5.74% | -18.45% | 5.25% | |
| Occidental Petroleum Corp. | 26.23% | 41.51% | 20.91% | -79.93% | 6.27% | |
| Pioneer Natural Resources Co. | 33.11% | 41.37% | 16.29% | -1.85% | 11.34% | |
| Valero Energy Corp. | 7.27% | 9.65% | 5.33% | -3.98% | 4.62% | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
OPM = 100 × NOPBT ÷ Sales and other operating revenue
= 100 × 52,567 ÷ 334,697 = 15.71%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Exxon Mobil Corp. OPM improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Turnover of Capital (TO)
Exxon Mobil Corp., TO calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenue | 334,697) | 398,675) | 276,692) | 178,574) | 255,583) | |
| Invested capital1 | 307,196) | 297,049) | 272,673) | 273,920) | 303,501) | |
| Efficiency Ratio | ||||||
| TO2 | 1.09 | 1.34 | 1.01 | 0.65 | 0.84 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Chevron Corp. | 0.93 | 1.11 | 0.80 | 0.48 | 0.71 | |
| ConocoPhillips | 0.69 | 1.04 | 0.60 | 0.37 | 0.56 | |
| Marathon Petroleum Corp. | 2.32 | 2.55 | 1.89 | 0.99 | 1.51 | |
| Occidental Petroleum Corp. | 0.50 | 0.65 | 0.45 | 0.28 | 0.24 | |
| Pioneer Natural Resources Co. | 0.58 | 0.76 | 0.55 | 0.41 | 0.58 | |
| Valero Energy Corp. | 2.83 | 3.54 | 2.56 | 1.58 | 2.66 | |
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 Invested capital. See details »
2 2023 Calculation
TO = Sales and other operating revenue ÷ Invested capital
= 334,697 ÷ 307,196 = 1.09
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Exxon Mobil Corp. TO improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Effective Cash Tax Rate (CTR)
Exxon Mobil Corp., CTR calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 37,855) | 62,749) | 32,736) | (34,098) | 16,404) | |
| Add: Cash operating taxes2 | 14,713) | 16,789) | 7,904) | 2,695) | 6,170) | |
| Net operating profit before taxes (NOPBT) | 52,567) | 79,538) | 40,640) | (31,403) | 22,573) | |
| Tax Rate | ||||||
| CTR3 | 27.99% | 21.11% | 19.45% | — | 27.33% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Chevron Corp. | 29.08% | 22.40% | 21.79% | — | 85.07% | |
| ConocoPhillips | 25.68% | 26.41% | 25.25% | — | 27.88% | |
| Marathon Petroleum Corp. | 21.82% | 19.76% | 10.23% | — | 4.97% | |
| Occidental Petroleum Corp. | 25.46% | 17.63% | 22.36% | — | 152.57% | |
| Pioneer Natural Resources Co. | 13.75% | 3.25% | 2.75% | — | 2.05% | |
| Valero Energy Corp. | 25.22% | 20.60% | 8.53% | — | 11.52% | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 14,713 ÷ 52,567 = 27.99%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Exxon Mobil Corp. CTR increased from 2021 to 2022 and from 2022 to 2023. |