Stock Analysis on Net
Stock Analysis on Net

Exxon Mobil Corp. (NYSE:XOM)

Analysis of Operating Leases

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An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Exxon Mobil Corp., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Total undiscounted future operating lease payments 6,112  4,290  3,811 
Discount rate1 9.44% 8.50% 9.14%
 
Total present value of future operating lease payments 4,219  3,079  2,833 

Based on: 10-K (filing date: 2021-02-24), 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).

1 Weighted average discount rate, finance leases

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 9.44%
2019 1,156  2019 1,156  1,056 
2020 985  2020 985  822 
2021 765  2021 765  584 
2022 549  2022 549  383 
2023 454  2023 454  289 
2024 and thereafter 2,203  2024 454  264 
2025 454  241 
2026 454  221 
2027 454  202 
2028 387  157 
Total: 6,112  6,112  4,219 

Based on: 10-K (filing date: 2019-02-27).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 8.50%
2018 936  2018 936  863 
2019 668  2019 668  567 
2020 498  2020 498  390 
2021 367  2021 367  265 
2022 300  2022 300  200 
2023 and thereafter 1,521  2023 300  184 
2024 300  169 
2025 300  156 
2026 300  144 
2027 300  133 
2028 21 
Total: 4,290  4,290  3,079 

Based on: 10-K (filing date: 2018-02-28).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 9.14%
2017 1,103  2017 1,103  1,011 
2018 682  2018 682  573 
2019 451  2019 451  347 
2020 326  2020 326  230 
2021 235  2021 235  152 
2022 and thereafter 1,014  2022 235  139 
2023 235  127 
2024 235  117 
2025 235  107 
2026 74  31 
Total: 3,811  3,811  2,833 

Based on: 10-K (filing date: 2017-02-22).


Adjustments to Financial Statements for Operating Leases

Exxon Mobil Corp., adjustments to financial statements

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Adjustment to Total Assets
Total assets (as reported) 332,750  362,597  346,196  348,691  330,314 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 —  —  4,219  3,079  2,833 
Total assets (adjusted) 332,750  362,597  350,415  351,770  333,147 
Adjustment to Total Debt
Total debt (as reported) 67,640  46,920  37,796  42,336  42,762 
Add: Operating lease liability (before adoption of FASB Topic 842)2 —  —  4,219  3,079  2,833 
Add: Operating lease liability due within one year (included in Accounts payable and accrued liabilities) 1,168  1,211  —  —  — 
Add: Long-term operating lease liability (included in Other long-term obligations) 3,994  4,482  —  —  — 
Total debt (adjusted) 72,802  52,613  42,015  45,415  45,595 

Based on: 10-K (filing date: 2021-02-24), 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).

1, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (Summary)

Exxon Mobil Corp., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Total Asset Turnover1
Reported total asset turnover 0.54 0.70 0.81 0.68 0.66
Adjusted total asset turnover 0.54 0.70 0.80 0.67 0.66
Debt to Equity2
Reported debt to equity 0.43 0.24 0.20 0.23 0.26
Adjusted debt to equity 0.46 0.27 0.22 0.24 0.27
Return on Assets3 (ROA)
Reported ROA -6.74% 3.95% 6.02% 5.65% 2.37%
Adjusted ROA -6.74% 3.95% 5.95% 5.60% 2.35%

Based on: 10-K (filing date: 2021-02-24), 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).

Financial 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 deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Exxon Mobil Corp.’s adjusted debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Exxon Mobil Corp.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

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


Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenue 178,574  255,583  279,332  237,162  218,608 
Total assets 332,750  362,597  346,196  348,691  330,314 
Activity Ratio
Total asset turnover1 0.54 0.70 0.81 0.68 0.66
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Sales and other operating revenue 178,574  255,583  279,332  237,162  218,608 
Adjusted total assets 332,750  362,597  350,415  351,770  333,147 
Activity Ratio
Adjusted total asset turnover2 0.54 0.70 0.80 0.67 0.66

Based on: 10-K (filing date: 2021-02-24), 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).

2020 Calculations

1 Total asset turnover = Sales and other operating revenue ÷ Total assets
= 178,574 ÷ 332,750 = 0.54

2 Adjusted total asset turnover = Sales and other operating revenue ÷ Adjusted total assets
= 178,574 ÷ 332,750 = 0.54

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 deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Equity

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Total debt 67,640  46,920  37,796  42,336  42,762 
Total ExxonMobil share of equity 157,150  191,650  191,794  187,688  167,325 
Solvency Ratio
Debt to equity1 0.43 0.24 0.20 0.23 0.26
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 72,802  52,613  42,015  45,415  45,595 
Total ExxonMobil share of equity 157,150  191,650  191,794  187,688  167,325 
Solvency Ratio
Adjusted debt to equity2 0.46 0.27 0.22 0.24 0.27

Based on: 10-K (filing date: 2021-02-24), 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).

2020 Calculations

1 Debt to equity = Total debt ÷ Total ExxonMobil share of equity
= 67,640 ÷ 157,150 = 0.43

2 Adjusted debt to equity = Adjusted total debt ÷ Total ExxonMobil share of equity
= 72,802 ÷ 157,150 = 0.46

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Exxon Mobil Corp.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ExxonMobil (22,440) 14,340  20,840  19,710  7,840 
Total assets 332,750  362,597  346,196  348,691  330,314 
Profitability Ratio
ROA1 -6.74% 3.95% 6.02% 5.65% 2.37%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ExxonMobil (22,440) 14,340  20,840  19,710  7,840 
Adjusted total assets 332,750  362,597  350,415  351,770  333,147 
Profitability Ratio
Adjusted ROA2 -6.74% 3.95% 5.95% 5.60% 2.35%

Based on: 10-K (filing date: 2021-02-24), 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).

2020 Calculations

1 ROA = 100 × Net income (loss) attributable to ExxonMobil ÷ Total assets
= 100 × -22,440 ÷ 332,750 = -6.74%

2 Adjusted ROA = 100 × Net income (loss) attributable to ExxonMobil ÷ Adjusted total assets
= 100 × -22,440 ÷ 332,750 = -6.74%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Exxon Mobil Corp.’s adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.