Analysis of Debt
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Total Debt (Carrying Amount)
Exxon Mobil Corp., balance sheet: debt
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Notes and loans payable | ||||||
| Long-term debt, excluding due within one year | ||||||
| Total debt (carrying amount) |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Notes and loans payable
- There was a significant decline from 20,458 million USD at the end of 2020 to 4,276 million USD by the end of 2021. This downward trend continued through 2022, reaching a low of 634 million USD. However, from 2023 onward, there was a notable reversal with increases to 4,090 million USD and further to 4,955 million USD by the end of 2024, indicating a resurgence in short-term debt obligations.
- Long-term debt, excluding amounts due within one year
- The long-term debt showed a steady and consistent decrease over the entire period, declining from 47,182 million USD at the end of 2020 to 36,755 million USD by the end of 2024. This suggests an ongoing effort to reduce long-term liabilities year-over-year, with the annual decreases ranging roughly between 4% and 7%.
- Total debt (carrying amount)
- Total debt exhibited a sharp decrease between 2020 and 2022, dropping from 67,640 million USD to 41,193 million USD. After this steep decline, total debt stabilized somewhat, with minor fluctuations around the low 41,000 million USD mark in 2023 and a slight increase to 41,710 million USD in 2024. This pattern reflects the combined effects of reduced short-term and long-term debt through 2022, followed by a slight rebound primarily driven by increased notes and loans payable.
- Overall analysis
- The data reveals a clear strategy or circumstance leading to a substantial deleveraging between 2020 and 2022, marked by strong reductions in both short-term and long-term debt components. Post-2022, while long-term debt reduction persisted, short-term debt levels rose, causing total debt to level off and slightly increase. This shift may indicate a change in financing approach or operational needs impacting short-term borrowing. The overall trend supports improved debt management with a focus on lowering long-term obligations, though recent increases in short-term debt warrant monitoring.
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Notes and loans payable | |
| Long-term debt, excluding finance lease obligations | |
| Long-term finance lease liability | |
| Total debt (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
Exxon Mobil Corp., interest costs incurred
US$ in millions
| 12 months ended: | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expense | |||||||||||
| Interest capitalized | |||||||||||
| Interest costs incurred |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Interest Expense
- The interest expense exhibited a consistent downward trend from 2020 to 2022, decreasing from 1158 million US dollars in 2020 to 798 million US dollars in 2022. However, this was followed by a reversal of the trend in the subsequent years, with interest expense increasing to 849 million in 2023 and further to 996 million in 2024.
- Interest Capitalized
- Interest capitalized remained relatively stable between 2020 and 2021, with a slight decrease from 665 million to 655 million US dollars. Beginning in 2022, this figure increased significantly, rising from 838 million to 1276 million US dollars in 2024, reflecting a more aggressive capitalization strategy or increased investment activities that qualify for capitalization.
- Interest Costs Incurred
- Overall interest costs incurred showed a decline from 1823 million US dollars in 2020 to 1602 million in 2021, followed by a slight increase to 1636 million in 2022. After 2022, the interest costs incurred rose sharply, reaching 2001 million in 2023 and further increasing to 2272 million in 2024. This overall upward trajectory in recent years aligns mostly with the rising interest capitalized and, to a lesser extent, the increasing interest expense.
- Summary
- The data indicates a shift in the composition of interest-related costs over the five-year period, with a notable reduction in interest expense early on, and a steady increase thereafter. Meanwhile, the capitalized interest has grown more substantially, contributing to the overall increase in total interest costs incurred in the latter years. This suggests potential changes in financing strategy or capital investment projects that impact how interest costs are recognized.
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= ÷ =
- Interest Coverage Ratio (without capitalized interest)
- The interest coverage ratio experienced a significant negative value of -23.94 in 2020, indicating difficulty in covering interest expenses during that period. There was a strong improvement in 2021, with the ratio rising sharply to 33.98. The upward trend continued into 2022, peaking at 98.43, which suggests a markedly enhanced ability to meet interest obligations. However, in the subsequent years, 2023 and 2024, the ratio declined to 63.17 and 50.07, respectively, indicating some reduction in coverage capability, although it remained substantially above the levels observed prior to 2021.
- Adjusted Interest Coverage Ratio (with capitalized interest)
- The adjusted interest coverage ratio, which accounts for capitalized interest, showed a similar trend to the unadjusted measure but at consistently lower levels. Starting from a negative value of -15.21 in 2020, it improved to 20.09 in 2021, reflecting better but still more constrained interest coverage compared to the unadjusted ratio. In 2022, the ratio increased substantially to 48.01, followed by declines in 2023 and 2024 to 26.8 and 21.95, respectively. This pattern indicates a strong recovery phase followed by a gradual tapering in interest payment capacity when capitalized interest is considered.