Exxon Mobil Corp. (NYSE:XOM)

Crude oil

The value of crude oil demonstrated a fluctuating pattern over the observed periods. There was a notable decline from 5,354 million US$ in 2020 to 4,162 million US$ in 2021, followed by a sharp recovery and peak at 6,909 million US$ in 2022. The values slightly increased to 6,944 million US$ in 2023 but then decreased again to 6,483 million US$ in 2024, indicating some volatility in this segment.

Petroleum products

Petroleum products values remained relatively stable from 2020 to 2021, with a slight decrease from 5,138 million US$ to 5,081 million US$. There was a considerable increase in 2022 to 6,291 million US$, maintaining at similar levels around 6,248 million US$ in 2023 before a marginal decline to 6,017 million US$ in 2024, showing overall moderate growth and stabilization.

Chemical products

Chemical products showed consistent growth across the years, starting at 3,023 million US$ in 2020 and rising steadily each period to reach 4,142 million US$ in 2024. This represents a robust upward trend and indicates expanding activity or valuation in this segment.

Gas/other

The gas and other category exhibited significant growth between 2020 and 2022, increasing from 654 million US$ to 3,428 million US$. After a slight decline to 3,406 million US$ in 2023, there was a more substantial decrease to 2,802 million US$ in 2024. This reflects a rapid expansion followed by partial contraction in the most recent period.

Crude oil, products and merchandise

This combined category demonstrated considerable growth over the period. Starting at 14,169 million US$ in 2020, it remained relatively flat through 2021, then surged in 2022 to 20,434 million US$. Values plateaued near that peak in 2023 at 20,528 million US$, followed by a decrease to 19,444 million US$ in 2024, suggesting a strong market presence with some recent softening.

Materials and supplies

The amount of materials and supplies fluctuated during the period. There was a decline from 4,681 million US$ in 2020 to 4,261 million US$ in 2021, with a further decrease to 4,001 million US$ in 2022. In 2023, the value rose sharply to 4,592 million US$, but then reduced again to 4,080 million US$ in 2024, indicating variability without a clear long-term trend.

Inventories

Inventories showed a relatively steady increase across the observed years. Starting at 18,850 million US$ in 2020, the value slightly decreased to 18,780 million US$ in 2021. A sharp increase occurred in 2022 and 2023, reaching 24,435 million and 25,120 million US$ respectively. There was a slight decline in 2024 to 23,524 million US$, but inventories overall were significantly higher in later years compared to the beginning of the period.

The financial data over the five-year period exhibit distinct trends in inventories, current assets, total assets, equity, and net income, considering both reported figures and adjustments for inventory LIFO reserve.

Inventories

Reported inventories show a slight decline from 2020 to 2021, followed by a notable increase in 2022 and a peak in 2023, before moderating in 2024. Adjusted inventories, which account for LIFO reserve, display a consistent upward trajectory from 2020 through 2022, reaching a near plateau in 2023 and declining in 2024. The difference between reported and adjusted inventories grows considerably over the years, indicating an expanding impact of inventory accounting adjustments.

Current Assets

Reported current assets rise steadily from 2020 to 2022, peaking in 2022 before slightly decreasing in 2023 and 2024. Adjusted current assets follow a similar pattern but maintain consistently higher values than the reported amounts, reflecting the influence of LIFO adjustments. The gap between reported and adjusted current assets widens, consistent with the trend observed in inventories.

Total Assets

There is a gradual increase in both reported and adjusted total assets across the years, with a sharper rise recorded in 2024. Adjusted total assets are consistently higher than reported total assets by an increasing margin, suggesting that the LIFO reserve continues to materially affect asset valuation.

Equity

ExxonMobil's reported equity shows steady growth annually, with particularly strong increments in 2023 and 2024. Adjusted equity follows the same positive progression and remains higher than reported equity throughout the period, with the difference expanding over time. This pattern indicates that adjustments for inventory valuation positively impact equity measurement.

Net Income

Reported net income started with a substantial loss in 2020, turning positive in 2021 and peaking in 2022, before declining in the subsequent years. Adjusted net income exhibits a similar pattern but records a deeper loss in 2020 and higher income levels in 2021 and 2022, while showing a more pronounced decrease in 2023 and 2024. This suggests the inventory adjustments have a significant impact on profitability, enhancing income figures in the years of growth and exacerbating the downturn during less profitable periods.

Current Ratio Trends

The reported current ratio improved steadily from 0.8 in 2020 to a peak of 1.48 in 2023, before slightly declining to 1.31 in 2024. The adjusted current ratio, which accounts for inventory LIFO reserve effects, follows a similar pattern but at consistently higher levels, rising from 0.89 in 2020 to 1.69 in 2023, then decreasing to 1.45 in 2024. This indicates an overall strengthening of short-term liquidity over the period, with a minor contraction in the most recent year.

Net Profit Margin Progression

Both reported and adjusted net profit margins exhibit a recovery and growth trend from 2020's negative values (-12.57% reported, -14.97% adjusted) to positive margins by 2021. The adjusted net profit margin surpasses the reported figure each year, peaking in 2022 at 14.21%. Margins then decline gradually in 2023 and 2024, ending at 9.93% reported and 8.75% adjusted. This suggests improved profitability from 2020 losses to a high point in 2022, followed by a moderation in earnings efficiency.

Total Asset Turnover Dynamics

The total asset turnover ratios, both reported and adjusted, demonstrate a rising trend from 2020 (around 0.53-0.54) to peak in 2022 (reported 1.08, adjusted 1.04), indicating increased efficiency in generating sales from assets. However, this efficiency decreases in 2023 and more notably in 2024, falling to 0.75 reported and 0.73 adjusted, which may indicate less effective use of assets to drive revenues in recent periods.

Financial Leverage Changes

Financial leverage ratios exhibit a consistent, gradual decline over the five years. Reported leverage reduces from 2.12 in 2020 to 1.72 in 2024, while adjusted leverage decreases from 2.08 to 1.69. This trend may signify a reduction in reliance on debt financing or a shift toward a more conservative capital structure.

Return on Equity (ROE) Patterns

Both reported and adjusted ROE show substantial improvement from negative returns in 2020 (-14.28% reported, -16.45% adjusted) to peaks around 2022 (reported 28.58%, adjusted 26.98%). Despite this rebound, ROE declines in the subsequent years, falling to 12.77% reported and 10.84% adjusted by 2024. This pattern reflects strong recovery and profitability gains, followed by a reduction in equity returns in the last two years.

Return on Assets (ROA) Development

ROA follows a similar trajectory to ROE, rising from negative values in 2020 (-6.74% reported, -7.91% adjusted) to a high in 2022 (15.1% reported, 14.75% adjusted). After 2022, ROA decreases steadily through 2023 and 2024, ending at 7.43% reported and 6.4% adjusted, signaling a decline in overall asset profitability in the most recent years.

General Insights

The adjusted figures, which consider inventory LIFO reserve effects, consistently show stronger current ratio and net profit margin values compared to reported data, suggesting that inventory valuation impacts liquidity and profitability metrics positively. The overall financial performance improved markedly from 2020 to 2022 with enhanced liquidity, profitability, and operational efficiency. However, the subsequent two years indicate some softening across most financial ratios, pointing to moderated growth and profitability challenges. The reduction in financial leverage indicates a possible strategic emphasis on lowering debt levels or rebalancing capital structure, contributing to the changing return metrics.

The reported current assets demonstrate a clear upward trend from 2020 through 2022, increasing from approximately 44.9 billion USD to 97.6 billion USD, followed by a slight decline in the subsequent two years, reaching 91.99 billion USD by the end of 2024. When adjusted for the inventory LIFO reserve, current assets are consistently higher in each corresponding period, starting at about 50.3 billion USD in 2020 and peaking at around 112.5 billion USD in 2022 before declining to nearly 102.0 billion USD by 2024.

The reported current ratio exhibits a steady improvement over the five-year span. It starts below 1.0 at 0.8 in 2020, indicating a weaker liquidity position, and rises to 1.41 in 2022. The ratio continues to increase slightly, reaching a high of 1.48 in 2023, but then marginally declines to 1.31 in 2024. The adjusted current ratio, accounting for the inventory LIFO reserve, follows a parallel pattern but at consistently higher levels. It starts at 0.89 in 2020, improves significantly to 1.63 by 2022, peaks at 1.69 in 2023, and then decreases to 1.45 in 2024.

Current Assets

The data indicates strong growth in current assets during the first three years, with a notable increase even after adjusting for the LIFO reserve. This suggests expanding short-term resources or better inventory valuation methods that increase the asset base.

The subsequent decline in both reported and adjusted current assets in 2023 and 2024 may reflect inventory reductions, asset disposals, or changes in operational working capital management.

Current Ratio

The increasing trend in both reported and adjusted current ratios over most periods signifies improving short-term liquidity and financial health. Ratios above 1.0 imply that current assets exceed current liabilities, enhancing the company's ability to meet short-term obligations.

The decline in 2024, though moderate, may warrant attention but remains above 1.3 in both measures, indicating continued sufficient liquidity.

Impact of LIFO Reserve Adjustment

Adjusting for the inventory LIFO reserve consistently increases both assets and current ratios, reflecting the understated inventory values when using LIFO accounting. This adjustment provides a more favorable liquidity outlook and asset position compared to the reported figures.

The financial data from the recent five-year period reflects significant volatility and eventual stabilization in the company's profitability metrics.

Net Income Trends

The reported net income attributable to the company showed a substantial turnaround, starting with a large loss of approximately $22.44 billion in 2020. This figure shifted to a profit of $23.04 billion in 2021 and continued rising sharply to reach a peak of $55.74 billion in 2022. Following this peak, reported net income declined to $36.01 billion in 2023 and further to $33.68 billion in 2024, indicating some moderation after the high earnings in 2022.

The adjusted net income, which accounts for inventory LIFO reserve adjustments, follows a similar pattern but with somewhat lower values in the early loss year and higher values during profitable years. The adjusted net loss in 2020 is larger at $26.74 billion, indicating inventory adjustments had a negative impact that year. In 2021 and onwards, adjusted net income remains higher than the reported figures, peaking at $56.64 billion in 2022 before declining to $29.68 billion in 2024, suggesting that inventory accounting methods had a favorable effect on reported profits during the profitable years.

Profit Margin Patterns

The reported net profit margin aligns with the net income trends, showing a negative margin of -12.57% in 2020, reflecting the loss-making year. It improves to a positive margin of 8.33% in 2021, and further increases to 13.98% in 2022, the most profitable period. Afterward, margins contract to 10.76% in 2023 and 9.93% in 2024, showing reduced but still healthy profitability relative to revenues.

Adjusted net profit margin exhibits a similar trend but with wider variation. The margin stands at -14.97% in 2020, indicating a sharper adjusted loss compared to the reported margin. It then recovers more robustly to 11.44% in 2021 and slightly exceeds the reported peak in 2022 at 14.21%. Subsequent declines to 10.46% in 2023 and 8.75% in 2024 suggest a consistent pattern of lower adjusted margins relative to reported margins in the later years.

Overall, the data reveal a recovery and strong earnings performance after a severe loss in 2020, with profitability peaking in 2022. Inventory accounting adjustments amplify the magnitude of losses during the downturn and profits during the peak period. However, both reported and adjusted figures show a downward adjustment in profitability in the last two years, indicating some challenges affecting earnings sustainability or market conditions following the peak year.

The data reveals notable trends in both the asset base and asset utilization over the five-year period under review. The total assets, as reported, exhibit a consistent upward trajectory, increasing from $332,750 million in 2020 to $453,475 million in 2024. When adjusted for the inventory LIFO reserve, the total assets follow a similar pattern, rising from $338,150 million to $463,475 million over the same period. This adjustment consistently results in a higher asset base, reflecting the impact of inventory valuation methods on the balance sheet.

Examining the asset turnover ratios, which measure the efficiency of asset use in generating revenues, there is an initial improvement followed by a decline. The reported total asset turnover starts at 0.54 in 2020, peaks at 1.08 in 2022, and subsequently decreases to 0.75 by 2024. The adjusted total asset turnover mirrors this pattern, increasing from 0.53 to 1.04 before falling to 0.73. This suggests that asset utilization efficiency improved significantly through 2022 but then deteriorated in the final two years.

The decline in asset turnover ratios during the latter years indicates that the growth in assets outpaced revenue generation, which could imply overinvestment in assets or a decrease in operational efficiency. The consistent difference between reported and adjusted figures underscores the significance of the LIFO reserve adjustment, which slightly lowers the turnover ratios due to the increased asset base.

Total Assets

Steady increase observed each year, with adjusted assets consistently higher than reported amounts due to inventory valuation adjustments.

Asset Turnover Ratios

Improved substantially from 2020 through 2022, indicating enhanced use of assets in generating revenues; however, the ratios declined in 2023 and 2024, implying reduced efficiency.

Impact of LIFO Reserve Adjustment

Adjustments lead to a modest increase in total assets, resulting in slightly lower asset turnover ratios compared to reported figures, highlighting the fine impact of inventory accounting on operational metrics.

The financial data displays a consistent upward trend in both reported and inventory LIFO reserve adjusted total assets over the observed periods. Reported total assets increased from US$332,750 million in 2020 to US$453,475 million in 2024. Similarly, adjusted total assets showed a parallel increase, rising from US$338,150 million in 2020 to US$463,475 million in 2024, reflecting an ongoing asset base expansion when considering inventory valuation adjustments.

Regarding shareholders’ equity attributed to Exxon Mobil Corp., there is a notable growth pattern in both reported and adjusted figures. Reported total equity increased steadily from US$157,150 million in 2020 to US$263,705 million in 2024, while adjusted equity figures rose from US$162,550 million to US$273,705 million in the same timeframe. The adjustments for inventory LIFO reserve slightly enhance the reported equity values, indicating the impact of inventory valuation methods on shareholder equity measurements.

The financial leverage ratios, representing the relationship between total assets and shareholders’ equity, exhibit a gradual decline throughout the years. Reported financial leverage decreased from 2.12 in 2020 to 1.72 in 2024, and adjusted financial leverage mirrored this trend, dropping from 2.08 to 1.69 over the same period. This declining leverage ratio suggests improving equity financing relative to assets, with a steadily strengthening capital structure and potentially lower reliance on debt financing when factoring in inventory adjustments.

The financial data for the periods under review reveals notable fluctuations across several key metrics. There is a marked improvement in reported net income attributable to the company, transitioning from a significant loss in 2020 to substantial profits in the following years, peaking in 2022 before showing a gradual decline through 2024. The adjusted net income figures follow a similar trajectory, with a deeper loss reported in 2020 compared to the reported figures, higher peaks, and larger declines thereafter, suggesting material adjustments impacting the company's reported profitability.

Total equity attributable to the company exhibits a consistent upward trend, both in reported and adjusted terms. The adjusted equity consistently exceeds the reported equity, indicating that the adjustments lead to a higher valuation of shareholder equity. The equity growth is substantial over the five-year horizon, with a notable acceleration in 2024 that suggests capital accumulation or positive retained earnings effect.

Return on equity (ROE), both reported and adjusted, mirrors the net income trends and shows a significant recovery from the negative rates in 2020 to robust returns in the subsequent years. The peak ROE values occur in 2022 with both reported and adjusted ROEs exceeding 26%, followed by a steady decline each year until 2024. The adjusted ROE consistently remains below the reported ROE, which may indicate that adjustments reduce the effective return on equity, possibly by increasing the equity base or adjusting income items.

Net Income

The shift from a loss position in 2020 to profitability from 2021 onward demonstrates a strong recovery and operational improvement.

The highest net income is recorded in 2022, followed by a deceleration, suggesting that peak financial performance was achieved in that year.

Adjusted net income figures are consistently more conservative, reflecting a cautious view after accounting for inventory LIFO reserve adjustments or other factors.

Equity

The equity base shows continuous growth, with the adjusted figures consistently higher than the reported, indicating revaluation or capital adjustments favoring an increased equity base.

The acceleration in equity growth in 2024 points to either retained earnings accumulation or additional capital contributions.

Return on Equity (ROE)

ROE swings from negative to strongly positive, reflecting the company's turnaround and profitability gains starting 2021.

ROE peaks in 2022 and then declines, which may indicate either earnings pressure or dilution of profitability due to equity increases.

Adjusted ROE is lower than the reported figure consistently, aligning with the impact of adjustments on reducing the apparent profitability ratio.

Overall, the patterns indicate a company that recovered strongly after 2020 losses, drove equity growth, and achieved peak profitability in 2022. However, the subsequent years show signs of easing profitability and growing equity, which together moderate returns. Adjusted figures present a more cautious but still positive perspective on financial performance and shareholder value.

The analysis of the data reveals several key trends and insights related to the financial performance and position over the five-year period.

Net Income

Reported net income experienced a significant shift from a substantial loss in 2020 to strong profitability in subsequent years, peaking in 2022 before declining in 2023 and 2024. A similar pattern is seen in the adjusted net income, which accounts for the LIFO reserve effects, though the adjusted figures show consistently lower values in the profit years, suggesting the impact of inventory accounting adjustments. The adjusted net income also showed a notable recovery and peak in 2022, followed by a downward trend in the last two years.

Total Assets

Reported total assets demonstrated a steady increase over the period, with a more pronounced rise in 2024. Adjusted total assets, which include inventory LIFO reserve adjustments, consistently register higher amounts than the reported figures each year, indicating the presence of significant LIFO reserve adjustments on inventory valuation. The adjusted asset base grew moderately from 2020 through 2023 and saw a marked increase in 2024, indicating asset growth beyond reported measures.

Return on Assets (ROA)

The reported ROA reflects the transition from negative to positive performance, mirroring the net income trend. It peaked in 2022 before declining but remained positive in 2023 and 2024. The adjusted ROA exhibits a similar pattern but consistently lower values compared to the reported ROA, aligning with the adjusted net income and asset figures. Both measures demonstrate a reduction in profitability relative to asset base in the last two years after a peak in 2022.

In summary, the data suggests a recovery and growth phase beginning in 2021 with improvements in profitability and asset base, peaking around 2022. However, there is an observable decline in profitability metrics post-2022 despite continued asset growth. The adjustments for inventory LIFO reserves result in a more conservative view of net income, asset size, and returns, indicating that inventory accounting significantly impacts financial reporting and performance assessment. This underscores the importance of considering such adjustments for a comprehensive understanding of financial health.