Stock Analysis on Net

Exxon Mobil Corp. (NYSE:XOM)

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Exxon Mobil Corp., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 37,855 62,749 32,736 (34,098) 16,404
Invested capital2 307,196 297,049 272,673 273,920 303,501
Performance Ratio
ROIC3 12.32% 21.12% 12.01% -12.45% 5.40%
Benchmarks
ROIC, Competitors4
Chevron Corp. 9.17% 19.68% 10.04% -5.22% 0.44%
ConocoPhillips 15.20% 28.02% 13.45% -5.92% 12.76%
Marathon Petroleum Corp. 16.88% 25.81% 9.73% -15.64% 7.54%
Occidental Petroleum Corp. 9.72% 22.25% 7.26% -23.53% -0.80%
Valero Energy Corp. 15.39% 27.16% 12.49% -4.03% 10.87%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 37,855 ÷ 307,196 = 12.32%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Exxon Mobil Corp. ROIC improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Decomposition of ROIC

Exxon Mobil Corp., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 12.32% = 15.71% × 1.09 × 72.01%
Dec 31, 2022 21.12% = 19.95% × 1.34 × 78.89%
Dec 31, 2021 12.01% = 14.69% × 1.01 × 80.55%
Dec 31, 2020 -12.45% = -17.59% × 0.65 × 100.00%
Dec 31, 2019 5.40% = 8.83% × 0.84 × 72.67%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2023 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Exxon Mobil Corp., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 37,855 62,749 32,736 (34,098) 16,404
Add: Cash operating taxes2 14,713 16,789 7,904 2,695 6,170
Net operating profit before taxes (NOPBT) 52,567 79,538 40,640 (31,403) 22,573
 
Sales and other operating revenue 334,697 398,675 276,692 178,574 255,583
Profitability Ratio
OPM3 15.71% 19.95% 14.69% -17.59% 8.83%
Benchmarks
OPM, Competitors4
Chevron Corp. 13.94% 22.85% 15.98% -8.90% 4.08%
ConocoPhillips 29.62% 36.63% 29.99% -13.37% 31.34%
Marathon Petroleum Corp. 9.30% 12.61% 5.74% -18.45% 5.25%
Occidental Petroleum Corp. 26.23% 41.51% 20.91% -79.93% 6.27%
Valero Energy Corp. 7.27% 9.65% 5.33% -3.98% 4.62%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Sales and other operating revenue
= 100 × 52,567 ÷ 334,697 = 15.71%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Exxon Mobil Corp. OPM improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Turnover of Capital (TO)

Exxon Mobil Corp., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Sales and other operating revenue 334,697 398,675 276,692 178,574 255,583
Invested capital1 307,196 297,049 272,673 273,920 303,501
Efficiency Ratio
TO2 1.09 1.34 1.01 0.65 0.84
Benchmarks
TO, Competitors3
Chevron Corp. 0.93 1.11 0.80 0.48 0.71
ConocoPhillips 0.69 1.04 0.60 0.37 0.56
Marathon Petroleum Corp. 2.32 2.55 1.89 0.99 1.51
Occidental Petroleum Corp. 0.50 0.65 0.45 0.28 0.24
Valero Energy Corp. 2.83 3.54 2.56 1.58 2.66

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Invested capital. See details »

2 2023 Calculation
TO = Sales and other operating revenue ÷ Invested capital
= 334,697 ÷ 307,196 = 1.09

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Exxon Mobil Corp. TO improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Effective Cash Tax Rate (CTR)

Exxon Mobil Corp., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 37,855 62,749 32,736 (34,098) 16,404
Add: Cash operating taxes2 14,713 16,789 7,904 2,695 6,170
Net operating profit before taxes (NOPBT) 52,567 79,538 40,640 (31,403) 22,573
Tax Rate
CTR3 27.99% 21.11% 19.45% 27.33%
Benchmarks
CTR, Competitors4
Chevron Corp. 29.08% 22.40% 21.79% 85.07%
ConocoPhillips 25.68% 26.41% 25.25% 27.88%
Marathon Petroleum Corp. 21.82% 19.76% 10.23% 4.97%
Occidental Petroleum Corp. 25.46% 17.63% 22.36% 152.57%
Valero Energy Corp. 25.22% 20.60% 8.53% 11.52%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 14,713 ÷ 52,567 = 27.99%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Exxon Mobil Corp. CTR increased from 2021 to 2022 and from 2022 to 2023.