Exxon Mobil Corp. (NYSE:XOM)

Current Income Tax Expense

The current income tax expense showed a significant upward trend from 2020 through 2022, increasing from $2,420 million in 2020 to a peak of $16,593 million in 2022. After this peak, the expense declined to $14,485 million in 2023 and then slightly increased to $14,640 million in 2024. This pattern suggests fluctuations possibly influenced by taxable income variations or tax policy changes during the period.

Deferred Income Tax Expense (Benefit)

The deferred tax expense exhibited considerable volatility over the examined years. In 2020, there was a substantial deferred tax benefit of $8,052 million, followed by a near-neutral position in 2021 with a minor expense of $44 million. The year 2022 experienced a reversal resulting in a deferred tax expense of $3,583 million, then a sharp drop to $944 million in 2023, and finally back to a deferred tax benefit of $830 million in 2024. This fluctuation may reflect changes in timing differences between accounting income and taxable income or adjustments to deferred tax assets and liabilities.

Total Income Tax Expense (Benefit)

The overall income tax expense combines current and deferred amounts, reflecting a negative value (a tax benefit) of $5,632 million in 2020, which shifted dramatically to a positive expense of $7,636 million in 2021. This upward trajectory continued, reaching $20,176 million in 2022, before decreasing to $15,429 million in 2023 and further to $13,810 million in 2024. These movements indicate a strong correlation with current tax expenses and suggest that 2020 was an outlier year with a net tax benefit, followed by a period where taxable profits and tax liabilities increased significantly.

The analysis of tax rate data over the five-year period reveals a consistent statutory U.S. tax rate, remaining stable at 21% throughout from 2020 to 2024. In contrast, the effective income tax rate exhibits a notable upward trend.

Theoretical U.S. tax rate

Steady at 21% for each year, indicating no changes in the statutory federal tax policy or company jurisdiction during the period.

Effective income tax rate

The effective income tax rate started at 17% in 2020, which was significantly lower than the theoretical rate, suggesting the utilization of tax credits, deductions, or other tax planning strategies reducing the actual tax burden.

In 2021, the effective rate jumped to 31%, which is substantially closer to the statutory level, implying a decrease in tax benefits or changes in income composition affecting taxable income.

From 2021 to 2024, the effective rate stabilizes at approximately 33%, slightly above the statutory rate. This indicates potential additional tax burdens such as state taxes, international taxes, or adjustments increasing the overall tax expense beyond the federal base rate.

Overall, the data demonstrates increasing alignment of the effective tax rate with the statutory tax rate over the years, moving from a considerable discount to a rate above the theoretical baseline. This suggests diminishing tax advantages or changes in the company's earnings mix impacting its overall tax expense.

The financial data reveals several notable trends in the company's asset and liability accounts over the five-year period.

Pension and other postretirement benefits

There is a clear decreasing trend, with the amount declining from 4,703 million USD in 2020 to 1,365 million USD in 2024. This indicates a steady reduction in these benefit obligations over time.

Asset retirement obligations

The obligations fluctuate moderately, starting at 3,150 million USD in 2020, dipping slightly in 2021, then rising to a peak of 3,532 million USD in 2023, before decreasing again to 3,156 million USD in 2024. This suggests periodic reassessments or variations in expected future costs.

Tax loss carryforwards

A consistent downward trend is observed from 8,982 million USD in 2020 to 4,317 million USD in 2023, with a slight increase to 4,575 million USD in 2024. This pattern may reflect usage of tax loss benefits or changes in tax strategy.

Other assets

These exhibit a somewhat volatile pattern, increasing from 7,095 million USD in 2020 to 7,694 million USD in 2021, then declining to 6,361 million USD in 2023, and rising again to 7,308 million USD in 2024. The fluctuations indicate varying levels of miscellaneous asset components.

Deferred tax assets, gross

A marked decline is visible from 23,930 million USD in 2020 to a low of 15,987 million USD in 2023, followed by a modest increase to 16,404 million USD in 2024. This decline suggests a reduction in the expected future tax benefits, possibly due to changing taxable income projections.

Asset valuation allowances

These remain relatively stable, fluctuating slightly around the -2,500 to -2,700 million USD range, indicating steady valuation adjustments against deferred tax assets.

Deferred tax assets, net

The net deferred tax assets decline over the period, falling from 21,199 million USD in 2020 to 13,346 million USD in 2023, with a slight rebound to 13,888 million USD in 2024. This trend mirrors the gross deferred tax asset pattern but takes into account valuation allowances.

Property, plant and equipment

There is a substantial decrease over the period, beginning at -28,778 million USD in 2020 and ending at -40,881 million USD in 2024. The increasing negative value suggests higher accumulated depreciation, impairment, or disposals exceeding acquisitions.

Other liabilities

There is a gradual increase in other liabilities from -6,427 million USD in 2020 to -8,113 million USD in 2024, indicating a build-up of miscellaneous obligations.

Deferred tax liabilities

This account shows a generally increasing liability, from -35,205 million USD in 2020 to a significant rise to -48,994 million USD in 2024, reflecting growing future tax obligations or timing differences.

Net deferred tax assets (liabilities)

There is a pronounced decline in net deferred tax position, moving from a net liability of -14,006 million USD in 2020 to a more substantial net liability of -35,106 million USD in 2024. This suggests increasing deferred tax liabilities relative to assets over the years.

Overall, the data indicates a trend of decreasing certain long-term assets such as pension obligations and tax loss carryforwards, alongside increasing liabilities, particularly deferred tax liabilities and property, plant, and equipment valuations. The net deferred tax position increasingly moves into greater liability, which may have future cash flow implications. The variations in other assets and liabilities point to management adjustments and operational fluctuations within the reporting periods.

Deferred Income Tax Assets

The deferred income tax assets showed fluctuations over the analyzed period. Initially, there was an increase from 4,159 million US dollars in 2020 to 4,450 million in 2021. Following this growth, the value decreased to 3,825 million in 2022 and further declined to 3,637 million in 2023. However, in 2024, the assets experienced a slight recovery, rising to 3,936 million. Overall, despite some volatility, the deferred income tax assets saw a marginal downward trend after the peak in 2021.

Deferred Income Tax Liabilities

The deferred income tax liabilities exhibited a consistent upward trajectory throughout the period. Starting at 18,165 million US dollars in 2020, there was a steady increase each year, reaching 20,165 million in 2021, 22,874 million in 2022, and 24,452 million in 2023. A significant increase was noted in 2024, where the liabilities rose sharply to 39,042 million. This marked escalation towards the end of the period suggests a substantial increase in obligations related to deferred taxes.

Total Assets

The reported total assets show a consistent upward trend from 332,750 million USD in 2020 to 453,475 million USD in 2024, reflecting an overall increase of approximately 36%. The adjusted total assets follow a similar pattern, increasing from 328,591 million USD in 2020 to 449,539 million USD in 2024. The adjustment consistently reduces total assets slightly compared to reported values, but the growth trajectory remains steady across the five-year period.

Total Liabilities

Reported total liabilities exhibit relative stability with minor fluctuations, starting at 168,620 million USD in 2020, dipping to 163,240 million USD in 2021, rising slightly to 166,594 million USD in 2022, then decreasing to 163,779 million USD in 2023, and finally increasing to 182,869 million USD in 2024. Adjusted total liabilities display a decreasing trend from 150,455 million USD in 2020 down to 139,327 million USD in 2023, before a modest increase to 143,827 million USD in 2024. The adjusted liabilities are consistently lower than reported liabilities, indicating significant downward adjustments over the period.

Shareholders' Equity

Reported ExxonMobil share of equity steadily increases over the period, rising from 157,150 million USD in 2020 to 263,705 million USD in 2024, representing a substantial growth of nearly 68%. The adjusted equity figures are consistently higher than the reported ones, starting at 171,156 million USD in 2020 and reaching 298,811 million USD in 2024. This upward trend in equity suggests strengthening financial stability and potential value creation for shareholders, with adjustments further enhancing equity values.

Net Income

Reported net income attributable to ExxonMobil demonstrates significant volatility. The company recorded a loss of 22,440 million USD in 2020, followed by a recovery to positive earnings of 23,040 million USD in 2021. This recovery gains strength in 2022 with 55,740 million USD, but then declines in 2023 to 36,010 million USD, and slightly decreases again to 33,680 million USD in 2024. Adjusted net income follows a similar trend but generally reflects larger negative and positive swings, with a more pronounced loss in 2020 of 30,492 million USD and a peak adjusted income of 59,323 million USD in 2022. The adjusted figures suggest that tax-related or other adjustments have a material impact on reported profitability, particularly in the initial loss year and peak earnings year.

Overall Analysis

Over the five-year horizon, both reported and adjusted assets and equity demonstrate significant growth, signaling an expanding asset base and improving shareholder value. Liabilities remain relatively controlled, with adjusted liabilities notably lower than reported, which may suggest conservative recognition or reclassification of certain obligations. Net income exhibits cyclical behavior with strong recovery after a deep loss in 2020, although adjusted net income shows slightly amplified fluctuations. The data indicates that adjustments related to deferred income taxes or similar financial considerations materially affect the financial position, particularly in equity and profitability measures. The general financial condition shows improvement in equity capitalization and asset growth, albeit with some volatility in earnings performance.

Net Profit Margin

The reported net profit margin shows a notable recovery from a negative figure of -12.57% in 2020 to positive values thereafter, peaking at 13.98% in 2022 before declining to 9.93% by 2024. The adjusted net profit margin follows a similar trajectory but reflects slightly more conservative values; it starts at -17.08% in 2020, reaches a high of 14.88% in 2022, and decreases to 9.68% in 2024. This pattern indicates an overall improvement in profitability after 2020 with some reduction in margin sustainability in recent years.

Total Asset Turnover

The total asset turnover ratio increased from 0.54 in 2020 to its peak of approximately 1.08–1.09 in 2022, indicating enhanced efficiency in generating sales from assets. Subsequently, the ratio declines to 0.75 by 2024, which suggests a reduction in asset usage efficiency over the last two years. Notably, the adjusted figures closely mirror the reported ratios, confirming consistency in this operational efficiency trend.

Financial Leverage

A gradual decline in financial leverage is observed, with reported values decreasing from 2.12 in 2020 to 1.72 in 2024, and adjusted values from 1.92 to 1.5 over the same period. This trend denotes a systematic reduction in the extent of debt used relative to equity, possibly reflecting a strategic shift towards lower financial risk or deleveraging over time.

Return on Equity (ROE)

The ROE metrics reveal a significant turnaround from negative returns in 2020 (-14.28% reported, -17.82% adjusted) to strong positive returns, peaking in 2022 (28.58% reported, 27.71% adjusted). After 2022, ROE shows a downward trend, settling at 12.77% reported and 10.99% adjusted by 2024, still reflecting profitable equity utilization but at reduced levels compared to the peak year.

Return on Assets (ROA)

ROA follows a pattern similar to ROE, recovering from negative returns in 2020 (-6.74% reported, -9.28% adjusted) to peaks in 2022 (15.1% reported, 16.24% adjusted), then declining moderately to 7.43% and 7.31% by 2024 for reported and adjusted figures, respectively. This indicates improved overall asset profitability after 2020 with some recent deceleration.

General Observations

The adjusted data consistently present more conservative estimates compared to reported figures, though both data sets demonstrate closely aligned trends. Across the examined periods, the company experienced a marked recovery and growth phase post-2020, with peak performance around 2022. However, recent years show a retreat from these highs, suggesting challenges in maintaining peak profitability and asset utilization levels. The steady reduction in financial leverage suggests a cautious approach toward capital structure, potentially to mitigate risk amid fluctuating operational performance.

Income Trends

The reported net income attributable to ExxonMobil demonstrated a significant recovery from a substantial loss of $22,440 million in 2020 to a positive figure of $23,040 million in 2021. This upward trajectory continued, reaching a peak of $55,740 million in 2022. Subsequently, the net income declined to $36,010 million in 2023 and further to $33,680 million in 2024. The adjusted net income follows a similar pattern, though it begins with a larger loss of $30,492 million in 2020 and peaks slightly higher at $59,323 million in 2022 before decreasing to $32,850 million in 2024.

Profit Margin Patterns

The reported net profit margin reflected a sharp turnaround from a negative margin of -12.57% in 2020 to a positive 8.33% in 2021, reaching its highest level at 13.98% in 2022. In the years following, the margin trended downward, closing at 9.93% by 2024. The adjusted net profit margin mirrors this trend, with an even more pronounced negative margin of -17.08% in 2020, improving to 8.31% in 2021, peaking at 14.88% in 2022, and then descending to 9.68% in 2024.

Insights

The data indicates ExxonMobil experienced a significant recovery after 2020, both in reported and adjusted terms, with profits peaking in 2022. The subsequent decline in net income and profit margins from 2023 to 2024 suggests potential challenges or market conditions impacting profitability during that period. The adjustments to net income and profit margins emphasize the volatility and significant non-recurring items affecting reported figures, particularly in 2020. Despite the decreases after 2022, profitability remains at a relatively strong positive level compared to the initial loss year.

Total Assets

The reported total assets increased steadily from 332,750 million US dollars in 2020 to 453,475 million US dollars in 2024. This represents a significant growth over the five-year period, with notable acceleration between 2023 and 2024. The adjusted total assets followed a similar upward trajectory, rising from 328,591 million US dollars in 2020 to 449,539 million US dollars in 2024. The close alignment between reported and adjusted total assets indicates consistent adjustments over the years without major discrepancies.

Total Asset Turnover Ratios

Both reported and adjusted total asset turnover ratios exhibited variation over the period analyzed. Starting at 0.54 in 2020, there was a sharp increase in 2021, with the ratio nearly doubling to approximately 0.82–0.83. The peak was reached in 2022 at around 1.08–1.09, indicating improved efficiency in generating revenues from assets during that year. However, this trend reversed in subsequent years, with the ratio declining to around 0.89–0.9 in 2023 and further decreasing to 0.75 in 2024. Despite the increase in total assets, the declining turnover ratios in the last two years suggest a relative decrease in asset utilization efficiency.

Overall Observations

Over the five-year horizon, total assets showed consistent growth, with a notable surge in the final year under review. Concurrently, asset turnover ratios improved initially, indicating enhanced operational efficiency, but experienced a reduction in the latter years. This pattern may reflect investment in asset base expansion outpacing revenue growth or shifts in business operations affecting asset productivity. The minimal differences between reported and adjusted figures highlight reliability in the adjusted financial data and suggest stable deferred tax impacts over time.

The financial data demonstrates a consistent growth in both reported and adjusted total assets over the observed five-year period. Reported total assets increased from 332,750 million USD at the end of 2020 to 453,475 million USD by the end of 2024, while adjusted total assets followed a similar upward trend, rising from 328,591 million USD to 449,539 million USD. This indicates substantial asset base expansion, with adjusted figures slightly lower than reported values due to tax-related adjustments.

Shareholders’ equity attributable to Exxon Mobil Corp. also showed steady growth in both reported and adjusted terms. Reported equity rose from 157,150 million USD in 2020 to 263,705 million USD in 2024, while adjusted equity increased from 171,156 million USD to 298,811 million USD over the same period. The adjusted equity consistently exceeded reported equity, reflecting the impact of deferred income tax adjustments which appear to strengthen the equity base after adjustment.

Regarding financial leverage ratios, both reported and adjusted leverage ratios declined progressively each year. Reported financial leverage decreased from 2.12 in 2020 to 1.72 in 2024, and adjusted financial leverage fell from 1.92 to 1.50 over the same timeframe. This trend suggests a gradual reduction in the relative level of financial obligations compared to equity, indicating a strengthening capital structure and a potentially lower financial risk profile over time.

Total Assets Trend

Marked growth in both reported and adjusted figures over five years, with adjusted totals slightly below reported due to tax adjustments.

Equity Development

Steady increase in equity values, with adjusted equity consistently higher than reported, highlighting the positive impact of deferred tax adjustments.

Financial Leverage Trend

Continuous decline in both reported and adjusted leverage ratios, indicating improved financial stability and reduced reliance on debt financing.

Net Income Trends

The reported net income attributable to ExxonMobil showed significant volatility over the five-year period. In 2020, the company experienced a substantial loss of approximately $22.4 billion. This turned positive in 2021 with a profit of $23 billion and continued to increase sharply, peaking at $55.7 billion in 2022. However, net income decreased in the subsequent years, falling to about $36 billion in 2023 and further to $33.7 billion in 2024.

The adjusted net income follows a similar trajectory but with wider variation. It started with a larger loss of approximately $30.5 billion in 2020, reflecting adjustments likely related to deferred income tax or other accounting impacts. Following this, adjusted income rose considerably to approximately $23 billion in 2021, peaked even higher than the reported figure in 2022 at about $59.3 billion, and then experienced declines in 2023 and 2024, ending at roughly $32.9 billion.

Equity Trends

Reported total ExxonMobil share of equity exhibits a consistent upward trend across the given periods. Starting at $157.2 billion in 2020, equity increased steadily each year to reach $263.7 billion by 2024, representing significant growth over the five-year span.

The adjusted total equity figures are consistently higher than the reported figures, suggesting adjustments for factors such as deferred taxes or other comprehensive income impacts. Adjusted equity rose from $171.2 billion in 2020 to $298.8 billion in 2024, reinforcing the pattern of steady capital base growth.

Return on Equity (ROE) Analysis

Reported ROE mirrored the net income trends but with notable swings. The company experienced a negative ROE of approximately -14.3% in 2020 during the sizable loss year. This recovered to positive 13.7% in 2021, surged to a high of 28.6% in 2022, before declining to 17.6% in 2023 and further dropping to 12.8% in 2024. This indicates a peak in capital efficiency in 2022 followed by a period of reduced profitability relative to equity.

The adjusted ROE figures show a similar pattern but are generally lower than the reported ROE, indicating that adjustments decrease the apparent profitability relative to shareholders’ equity. Adjusted ROE dropped to -17.8% in 2020, improved to 12.5% in 2021, peaked at 27.7% in 2022, then decreased to 16.4% in 2023 and 11.0% in 2024.

Overall Insights

The financial data reveals a significant recovery and growth phase following the loss in 2020, with profitability peaking in 2022 before declining in the two subsequent years. The adjustments to net income and equity consistently reflect more conservative measures of financial performance. The steady increase in equity suggests a strengthening capital base despite profitability fluctuations. The divergence between reported and adjusted figures highlights the impact of accounting treatments related to deferred taxes or other adjustments on performance metrics.

Net Income (Loss) Attributable to ExxonMobil

The reported net income experienced a significant turnaround from a substantial loss of $22,440 million in 2020 to positive profits of $23,040 million in 2021, followed by a strong upward trend reaching a peak of $55,740 million in 2022. However, this peak was followed by a decline in both 2023 and 2024, with reported net income decreasing to $36,010 million and $33,680 million, respectively. The adjusted net income trend closely mirrors the reported figures, though it shows a deeper initial loss in 2020 at $30,492 million and a higher peak in 2022 of $59,323 million. Adjusted net income also declined in the subsequent two years to $36,954 million in 2023 and $32,850 million in 2024.

Total Assets

Reported total assets demonstrate a consistent upward trend throughout the entire period, increasing from $332,750 million in 2020 to $453,475 million in 2024. Adjusted total assets follow a similar trajectory, albeit slightly lower in value, rising from $328,591 million in 2020 to $449,539 million in 2024. This steady growth in total assets indicates an expansion in the company’s asset base over the five-year span.

Return on Assets (ROA)

Both reported and adjusted ROA reveal significant fluctuations aligned with the net income trends. In 2020, the reported ROA was negative at -6.74%, reflecting the net loss, and improved to positive territory at 6.8% in 2021. The ROA peaked at 15.1% in 2022, corresponding with the highest net income that year. Subsequently, ROA declined to 9.57% in 2023 and further to 7.43% in 2024. Adjusted ROA exhibits a similar pattern, starting with a more negative figure of -9.28% in 2020, peaking at 16.24% in 2022, and then decreasing to 9.92% and 7.31% in 2023 and 2024, respectively.

Overall Insights

The financial data reveal a recovery phase from significant losses in 2020 to considerable profitability peaking in 2022. Despite this upward momentum, both net income and ROA show a declining trend after 2022, suggesting potential challenges or changes in operational efficiency. The steady increase in total assets during the period indicates ongoing investment or acquisition activities, supporting growth strategies. The adjustments for deferred income tax have a notable impact on net income figures, especially in the loss year of 2020 and peak profitability year of 2022, highlighting the importance of tax-related adjustments in understanding the company’s financial performance.