Financial statement analysis and common stock valuation

Analysis of Geographic Areas

Exxon Mobil Corp. operates in 2 regions: United States and Non-U.S..

• Area Asset Turnover
• Sales and other operating revenue
• Long-lived assets

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the Exxon Mobil Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Cash Flow Statement

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.

Income Statement
Quarterly Data

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

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a Exxon Mobil Corp. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

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

Balance Sheet: Assets
Quarterly Data

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

Capital Asset Pricing Model (CAPM)

CAPM is a theory concentrated with deriving the expected rates of return on risky assets based on the assets’ systematic risk levels. Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. It cannot be eliminated by diversification.

• Rates of Return
• Variance and Covariance
• Systematic Risk (β) Estimation
• Expected Rate of Return

Analysis of Reportable Segments

Exxon Mobil Corp. operates in 4 segments: Upstream; Energy Products; Chemical Products; and Specialty Products.

• Segment Profit Margin
• Segment Return on Assets (Segment ROA)
• Segment Asset Turnover
• Segment Capital Expenditures to Depreciation
• Sales and other operating revenue
• Segment net income (loss)
• Depreciation and depletion, includes impairments
• Additions to property, plant and equipment
• Total assets

Common Stock Valuation Ratios
Quarterly Data

Relative valuation technique determine the value of Exxon Mobil Corp. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Analysis of Debt

• Total Debt (Carrying Amount)
• Total Debt (Fair Value)
• Weighted-average Interest Rate on Debt
• Interest Costs Incurred
• Adjusted Interest Coverage Ratio