Common-Size Income Statement
Exxon Mobil Corp., common-size consolidated income statement
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).
The analysis of the financial data over the five-year period reveals several notable trends and shifts in the company’s operational and financial performance ratios relative to total sales and other operating revenue.
- Revenues and Income Composition
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The total of revenues and other income consistently remained above 100% throughout the years, ranging from 101.64% in 2020 to just over 103% by 2024. This indicates a slight increase in income components beyond core sales revenue. Income from equity affiliates showed a general increase from 0.97% in 2020, peaking at 2.88% in 2022, before decreasing somewhat but remaining above 1.8% by 2024. Other income similarly increased steadily from 0.67% to 1.22%, suggesting diversification or growth in non-core income streams.
- Cost and Expense Trends
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Crude oil and product purchases as a percentage of sales rose gradually from -52.64% to -58.79%, reflecting an increasing cost burden in relation to revenue. Production and manufacturing expenses declined significantly from -17.04% in 2020 to -10.69% in 2022, though they saw a slight uptick in subsequent years to around -11.68%. Selling, general, and administrative expenses followed a downward trend from -5.69% to just under -3%, indicating improved cost control in these areas.
Depreciation and depletion expenses, including impairments, experienced a marked decline from -25.76% in 2020 to around -6% in the following years, signifying a possible reduction in impairment charges or asset base adjustments. Exploration expenses decreased steadily, highlighting reduced costs or shifts in investment focus in exploration activities. Other taxes and duties showed a downward trend from -14.63% to around -7.75%, potentially due to tax strategy adjustments or changes in applicable rates.
- Profitability Metrics
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Operating income demonstrated a significant turnaround from a negative -14.85% in 2020 to a positive peak in 2022 at 19.82%, albeit decreasing somewhat afterward but remaining positive above 14% in 2024. This suggests a recovery and strengthening in operational profitability. Income before income taxes followed a similar pattern, rising from negative to positive figures before tapering slightly in the latter years.
- Taxes, Interest, and Net Income
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Income tax expense shifted from a positive tax benefit of 3.15% in 2020 to consistent tax expenses near -4% to -5%, reflecting a return to normal tax liabilities corresponding with profitability improvements. Interest expense showed a gradual decrease but remained a relatively minor portion, fluctuating around -0.2% to -0.3%.
Net income, including noncontrolling interests, transitioned from a loss position of -13.02% in 2020 to substantial positive returns peaking at 14.44% in 2022. Although slightly declining in the following years, net income remained robust above 10%, indicating sustained profitability. The net income attributable to ExxonMobil closely followed this pattern, illustrating that the majority of net income is attributable to the company itself rather than minority interests.
- Other Observations
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Non-service pension and postretirement benefit expenses decreased over time, indicating reduced pension-related charges relative to sales. Additionally, net income attributable to noncontrolling interests became more negative, suggesting higher minority interest deductions relative to revenue.
Overall, the data depict a significant financial recovery and improvement post-2020 with higher profitability, controlled costs in certain expense categories, and gradual increases in income components beyond direct sales. The company exhibits strong operational performance and effective cost management, leading to sustained positive net income percentages in recent years.