Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Exxon Mobil Corp. (NYSE:XOM)

Analysis of Income Taxes

Advanced level

Income Tax Expense (Benefit)

Exxon Mobil Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Federal (121) 459  577  (214) — 
Non-U.S. 6,171  9,001  6,633  4,056  7,126 
U.S. tax on non-U.S. operations 89  42  17  41  38 
State (182) 126  (80) (66) (12)
Current 5,957  9,628  7,147  3,817  7,152 
Federal (255) 518  (9,075) (2,801) (1,166)
Non-U.S. (420) (614) 754  (1,422) (571)
Deferred, net (675) (96) (8,321) (4,223) (1,737)
Income tax expense 5,282  9,532  (1,174) (406) 5,415 

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Exxon Mobil Corp.’s current increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Deferred, net Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Exxon Mobil Corp.’s deferred, net increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Exxon Mobil Corp.’s income tax expense increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Effective Income Tax Rate (EITR)

Exxon Mobil Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Theoretical U.S. tax rate 21.00% 21.00% 35.00% 35.00% 35.00%
Effective income tax rate, before enactment-date effects of U.S. tax reform 34.00% 38.00% 33.00% 13.00% 34.00%
Effective income tax rate 34.00% 37.00% 5.00% 13.00% 34.00%

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

Item Description The company
Effective income tax rate, before enactment-date effects of U.S. tax reform Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Exxon Mobil Corp.’s effective income tax rate, before enactment-date effects of U.S. tax reform increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Components of Deferred Tax Assets and Liabilities

Exxon Mobil Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Pension and other postretirement benefits 4,712  4,115  4,338  6,053  6,286 
Asset retirement obligations 3,403  4,118  4,237  5,454  6,277 
Tax loss carryforwards 7,404  6,321  6,767  5,472  4,983 
Other assets 7,735  5,498  5,832  5,615  5,592 
Deferred tax assets, gross 23,254  20,052  21,174  22,594  23,138 
Asset valuation allowances (1,924) (1,826) (2,565) (1,509) (1,730)
Deferred tax assets, net 21,330  18,226  18,609  21,085  21,408 
Property, plant and equipment (36,029) (35,745) (36,559) (46,744) (49,409)
Other liabilities (7,653) (6,516) (5,625) (4,262) (4,613)
Deferred tax liabilities (43,682) (42,261) (42,184) (51,006) (54,022)
Net deferred tax assets (liabilities) (22,352) (24,035) (23,575) (29,921) (32,614)

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Exxon Mobil Corp.’s deferred tax assets, gross decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Deferred tax assets, net Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Exxon Mobil Corp.’s deferred tax assets, net decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Exxon Mobil Corp.’s net deferred tax assets (liabilities) decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Deferred Tax Assets and Liabilities, Classification

Exxon Mobil Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current deferred tax assets (included in Other current assets) —  —  —  —  1,329 
Noncurrent deferred tax assets (included in Other assets, including intangibles, net) 3,268  3,209  3,318  4,120  3,421 
Current deferred tax liabilities (included in Accounts payable and accrued liabilities) —  —  —  —  546 
Noncurrent deferred income tax liabilities 25,620  27,244  26,893  34,041  36,818 

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

Item Description The company
Noncurrent deferred tax assets (included in Other assets, including intangibles, net) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Exxon Mobil Corp.’s noncurrent deferred tax assets (included in Other assets, including intangibles, net) decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
Noncurrent deferred income tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Exxon Mobil Corp.’s noncurrent deferred income tax liabilities increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Adjustments to Financial Statements: Removal of Deferred Taxes

Exxon Mobil Corp., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Current Assets
Current assets (as reported) 50,052  47,973  47,134  41,416  42,623 
Less: Current deferred tax assets, net —  —  —  —  1,329 
Current assets (adjusted) 50,052  47,973  47,134  41,416  41,294 
Adjustment to Total Assets
Total assets (as reported) 362,597  346,196  348,691  330,314  336,758 
Less: Current deferred tax assets, net —  —  —  —  1,329 
Less: Noncurrent deferred tax assets, net 3,268  3,209  3,318  4,120  3,421 
Total assets (adjusted) 359,329  342,987  345,373  326,194  332,008 
Adjustment to Current Liabilities
Current liabilities (as reported) 63,989  57,138  57,771  47,638  53,976 
Less: Current deferred tax liabilities, net —  —  —  —  546 
Current liabilities (adjusted) 63,989  57,138  57,771  47,638  53,430 
Adjustment to Total Liabilities
Total liabilities (as reported) 163,659  147,668  154,191  156,484  159,948 
Less: Current deferred tax liabilities, net —  —  —  —  546 
Less: Noncurrent deferred tax liabilities, net 25,620  27,244  26,893  34,041  36,818 
Total liabilities (adjusted) 138,039  120,424  127,298  122,443  122,584 
Adjustment to Total ExxonMobil Share Of Equity
Total ExxonMobil share of equity (as reported) 191,650  191,794  187,688  167,325  170,811 
Less: Net deferred tax assets (liabilities) (22,352) (24,035) (23,575) (29,921) (32,614)
Total ExxonMobil share of equity (adjusted) 214,002  215,829  211,263  197,246  203,425 
Adjustment to Net Income Attributable To ExxonMobil
Net income attributable to ExxonMobil (as reported) 14,340  20,840  19,710  7,840  16,150 
Add: Deferred income tax expense (benefit) (675) (96) (8,321) (4,223) (1,737)
Net income attributable to ExxonMobil (adjusted) 13,665  20,744  11,389  3,617  14,413 

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

Exxon Mobil Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Exxon Mobil Corp., adjusted financial ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current Ratio
Reported current ratio 0.78 0.84 0.82 0.87 0.79
Adjusted current ratio 0.78 0.84 0.82 0.87 0.77
Net Profit Margin
Reported net profit margin 5.61% 7.46% 8.31% 3.59% 6.22%
Adjusted net profit margin 5.35% 7.43% 4.80% 1.65% 5.55%
Total Asset Turnover
Reported total asset turnover 0.70 0.81 0.68 0.66 0.77
Adjusted total asset turnover 0.71 0.81 0.69 0.67 0.78
Financial Leverage
Reported financial leverage 1.89 1.81 1.86 1.97 1.97
Adjusted financial leverage 1.68 1.59 1.63 1.65 1.63
Return on Equity (ROE)
Reported ROE 7.48% 10.87% 10.50% 4.69% 9.45%
Adjusted ROE 6.39% 9.61% 5.39% 1.83% 7.09%
Return on Assets (ROA)
Reported ROA 3.95% 6.02% 5.65% 2.37% 4.80%
Adjusted ROA 3.80% 6.05% 3.30% 1.11% 4.34%

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Exxon Mobil Corp.’s adjusted current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Exxon Mobil Corp.’s adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Exxon Mobil Corp.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Exxon Mobil Corp.’s adjusted financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Exxon Mobil Corp.’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Exxon Mobil Corp.’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Exxon Mobil Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Current assets 50,052  47,973  47,134  41,416  42,623 
Current liabilities 63,989  57,138  57,771  47,638  53,976 
Liquidity Ratio
Current ratio1 0.78 0.84 0.82 0.87 0.79
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 50,052  47,973  47,134  41,416  41,294 
Adjusted current liabilities 63,989  57,138  57,771  47,638  53,430 
Liquidity Ratio
Adjusted current ratio2 0.78 0.84 0.82 0.87 0.77

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 50,052 ÷ 63,989 = 0.78

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 50,052 ÷ 63,989 = 0.78

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Exxon Mobil Corp.’s adjusted current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to ExxonMobil 14,340  20,840  19,710  7,840  16,150 
Sales and other operating revenue 255,583  279,332  237,162  218,608  259,488 
Profitability Ratio
Net profit margin1 5.61% 7.46% 8.31% 3.59% 6.22%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to ExxonMobil 13,665  20,744  11,389  3,617  14,413 
Sales and other operating revenue 255,583  279,332  237,162  218,608  259,488 
Profitability Ratio
Adjusted net profit margin2 5.35% 7.43% 4.80% 1.65% 5.55%

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Net profit margin = 100 × Net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 14,340 ÷ 255,583 = 5.61%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 13,665 ÷ 255,583 = 5.35%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Exxon Mobil Corp.’s adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenue 255,583  279,332  237,162  218,608  259,488 
Total assets 362,597  346,196  348,691  330,314  336,758 
Activity Ratio
Total asset turnover1 0.70 0.81 0.68 0.66 0.77
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenue 255,583  279,332  237,162  218,608  259,488 
Adjusted total assets 359,329  342,987  345,373  326,194  332,008 
Activity Ratio
Adjusted total asset turnover2 0.71 0.81 0.69 0.67 0.78

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Total asset turnover = Sales and other operating revenue ÷ Total assets
= 255,583 ÷ 362,597 = 0.70

2 Adjusted total asset turnover = Sales and other operating revenue ÷ Adjusted total assets
= 255,583 ÷ 359,329 = 0.71

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Exxon Mobil Corp.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 362,597  346,196  348,691  330,314  336,758 
Total ExxonMobil share of equity 191,650  191,794  187,688  167,325  170,811 
Solvency Ratio
Financial leverage1 1.89 1.81 1.86 1.97 1.97
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 359,329  342,987  345,373  326,194  332,008 
Adjusted total ExxonMobil share of equity 214,002  215,829  211,263  197,246  203,425 
Solvency Ratio
Adjusted financial leverage2 1.68 1.59 1.63 1.65 1.63

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Financial leverage = Total assets ÷ Total ExxonMobil share of equity
= 362,597 ÷ 191,650 = 1.89

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total ExxonMobil share of equity
= 359,329 ÷ 214,002 = 1.68

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Exxon Mobil Corp.’s adjusted financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to ExxonMobil 14,340  20,840  19,710  7,840  16,150 
Total ExxonMobil share of equity 191,650  191,794  187,688  167,325  170,811 
Profitability Ratio
ROE1 7.48% 10.87% 10.50% 4.69% 9.45%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to ExxonMobil 13,665  20,744  11,389  3,617  14,413 
Adjusted total ExxonMobil share of equity 214,002  215,829  211,263  197,246  203,425 
Profitability Ratio
Adjusted ROE2 6.39% 9.61% 5.39% 1.83% 7.09%

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 ROE = 100 × Net income attributable to ExxonMobil ÷ Total ExxonMobil share of equity
= 100 × 14,340 ÷ 191,650 = 7.48%

2 Adjusted ROE = 100 × Adjusted net income attributable to ExxonMobil ÷ Adjusted total ExxonMobil share of equity
= 100 × 13,665 ÷ 214,002 = 6.39%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Exxon Mobil Corp.’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to ExxonMobil 14,340  20,840  19,710  7,840  16,150 
Total assets 362,597  346,196  348,691  330,314  336,758 
Profitability Ratio
ROA1 3.95% 6.02% 5.65% 2.37% 4.80%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to ExxonMobil 13,665  20,744  11,389  3,617  14,413 
Adjusted total assets 359,329  342,987  345,373  326,194  332,008 
Profitability Ratio
Adjusted ROA2 3.80% 6.05% 3.30% 1.11% 4.34%

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

2019 Calculations

1 ROA = 100 × Net income attributable to ExxonMobil ÷ Total assets
= 100 × 14,340 ÷ 362,597 = 3.95%

2 Adjusted ROA = 100 × Adjusted net income attributable to ExxonMobil ÷ Adjusted total assets
= 100 × 13,665 ÷ 359,329 = 3.80%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Exxon Mobil Corp.’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.