Return on Capital (ROC)
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.
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Exxon Mobil Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
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Return on Invested Capital (ROIC)
Exxon Mobil Corp., ROIC calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| ROIC3 | ||||||
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit After Taxes (NOPAT)
- The NOPAT experienced a significant shift during the observed periods. In 2020, the value was substantially negative at -34,098 million USD, indicating a challenging financial environment. Thereafter, a strong recovery is evident with NOPAT rising sharply to 32,736 million USD in 2021 and further improving to 62,749 million USD in 2022. However, the subsequent years show a decline in profitability, with NOPAT decreasing to 37,855 million USD in 2023 and again to 31,476 million USD in 2024, though these levels remain positive.
- Invested Capital
- Invested capital displayed a generally upward trend across the five-year period. Starting at 273,920 million USD in 2020, it remained relatively stable through 2021 with a slight decrease to 272,673 million USD. Afterwards, it exhibited consistent growth, reaching 297,049 million USD in 2022, 307,196 million USD in 2023, and experiencing a notable increase to 378,995 million USD by the end of 2024. This suggests ongoing capital investments or asset growth over time.
- Return on Invested Capital (ROIC)
- The ROIC reflected a recovery pattern corresponding with profit changes. The negative figure of -12.45% in 2020 was followed by a positive turnaround to 12.01% in 2021 and a peak of 21.12% in 2022, indicating enhanced efficiency in generating returns from invested capital. Despite this peak, ROIC declined in the subsequent years to 12.32% in 2023 and further to 8.31% in 2024, indicating a reduction in profitability relative to invested capital but still maintaining a positive return.
- Overall Insights
- The data indicates a strong recovery after a loss-making year in 2020, with profitability and returns improving significantly through 2022. However, in the last two years, although the company remained profitable, both NOPAT and ROIC trends suggest decreasing margins and efficiency. The increase in invested capital over the same period may reflect expansion efforts or increased asset base, but this has not translated into proportional growth in returns. Monitoring these trends will be important to assess whether the company can improve operational efficiency and profitability going forward.
Decomposition of ROIC
Exxon Mobil Corp., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | = | × | × | ||||
| Dec 31, 2023 | = | × | × | ||||
| Dec 31, 2022 | = | × | × | ||||
| Dec 31, 2021 | = | × | × | ||||
| Dec 31, 2020 | = | × | × |
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
- Operating Profit Margin (OPM)
- The operating profit margin exhibited significant fluctuation over the five-year period. In 2020, the margin was notably negative at -17.59%, indicating operational challenges or losses during that year. However, the margin improved considerably in subsequent years, reaching a peak of 19.95% in 2022, before declining to 13.67% in 2024. This suggests a recovery and positive profitability trend post-2020, though with some reduction in operational efficiency or profitability towards the end of the period.
- Turnover of Capital (TO)
- The turnover of capital ratio showed an overall upward trend from 2020 to 2022, increasing from 0.65 to 1.34, which indicates improved efficiency in the use of capital to generate revenue during that period. However, this upward momentum reversed after 2022, with the ratio falling to 0.9 by 2024, signaling a decrease in capital utilization efficiency in the latter years.
- 1 – Effective Cash Tax Rate (CTR)
- This metric, representing the portion of income retained after taxes, declined consistently throughout the period. Starting at 100% in 2020, it dropped to 67.85% by 2024. This trend reveals increasing tax burdens or reduced tax efficiencies over time, negatively impacting net cash availability from operating activities.
- Return on Invested Capital (ROIC)
- Return on invested capital followed a pattern similar to the operating profit margin. It was negative in 2020 at -12.45%, indicating poor returns on investments during that year. From 2021 onwards, ROIC showed marked improvement, peaking at 21.12% in 2022 before declining to 8.31% in 2024. The data suggests a strong recovery in investment returns after 2020 with a subsequent decrease in effectiveness towards the end of the period.
Operating Profit Margin (OPM)
Exxon Mobil Corp., OPM calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Sales and other operating revenue | ||||||
| Profitability Ratio | ||||||
| OPM3 | ||||||
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
OPM = 100 × NOPBT ÷ Sales and other operating revenue
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit Before Taxes (NOPBT)
- The NOPBT shows a significant recovery and growth trend from 2020 through 2022, moving from a negative value of -31,403 million USD in 2020 to a peak of 79,538 million USD in 2022. Subsequently, there is a decline observed in 2023 and 2024, with values falling to 52,567 million USD and then 46,391 million USD, respectively. Despite the decrease in the last two years, the profit levels remain positive and substantially higher than the 2020 figure.
- Sales and Other Operating Revenue
- Sales and operating revenue have demonstrated a steady upward trend from 2020 through 2022, increasing from 178,574 million USD to 398,675 million USD. In 2023, a reduction occurred to 334,697 million USD, followed by a slight increase to 339,247 million USD in 2024. Overall, revenue levels have more than doubled over the five-year period, with a notable peak in 2022.
- Operating Profit Margin (OPM)
- The operating profit margin reflects a substantial improvement from a negative margin of -17.59% in 2020 to a positive high of 19.95% in 2022. However, similar to the NOPBT trend, the margin experiences a decline in the subsequent years, dropping to 15.71% in 2023 and further to 13.67% in 2024. Although there is a downward movement in the last two recorded periods, the margin remains in positive territory, indicating ongoing operational profitability.
- Overall Insights
- The financial data indicates a strong recovery in profitability and operational efficiency following the negative performance in 2020. The peak performance year appears to be 2022, characterized by the highest NOPBT and sales revenue alongside the best operating profit margin. The subsequent decline in 2023 and 2024 suggests possible challenges or market adjustments impacting profitability and revenue. Despite these declines, the company maintains a healthy profit margin and positive operating profit, reflecting resilience and sustained operational performance relative to the initial year.
Turnover of Capital (TO)
Exxon Mobil Corp., TO calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenue | ||||||
| Invested capital1 | ||||||
| Efficiency Ratio | ||||||
| TO2 | ||||||
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
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).
1 Invested capital. See details »
2 2024 Calculation
TO = Sales and other operating revenue ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
- Sales and Other Operating Revenue
- The revenue showed a substantial increase from 178,574 million USD in 2020 to 398,675 million USD in 2022, indicating strong growth over these two years. However, there was a decline in 2023 to 334,697 million USD, followed by a slight recovery to 339,247 million USD in 2024. Despite this recent dip, the overall trend over the five-year period shows significant revenue expansion.
- Invested Capital
- Invested capital remained relatively stable between 2020 and 2021, with values around 273,000 million USD. From 2022 onwards, invested capital experienced a consistent increase, reaching 378,995 million USD in 2024. This upward trend suggests ongoing or increasing investment in assets or operations during this period.
- Turnover of Capital (TO)
- The turnover ratio rose sharply from 0.65 in 2020 to a peak of 1.34 in 2022, reflecting more efficient use of capital to generate revenue during this time. In 2023, it declined to 1.09 and further decreased to 0.9 in 2024, indicating a reduction in capital efficiency relative to previous years, despite increased invested capital and a rebound in revenue.
Effective Cash Tax Rate (CTR)
Exxon Mobil Corp., CTR calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Tax Rate | ||||||
| CTR3 | ||||||
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
- Cash Operating Taxes
- The cash operating taxes have shown a consistent upward trend from 2020 through 2024. Starting at $2,695 million in 2020, the figure increased significantly to $7,904 million in 2021, followed by a more than doubling to $16,789 million in 2022. Although there was a slight decline in 2023 to $14,713 million, the taxes rose again marginally in 2024 to $14,916 million. This indicates growing tax obligations over the period with some stabilization in the latter years.
- Net Operating Profit Before Taxes (NOPBT)
- The net operating profit before taxes exhibited notable volatility across the five-year period. In 2020, a substantial loss of $31,403 million was recorded. However, the company rebounded sharply in 2021 with a positive NOPBT of $40,640 million. This upward momentum continued in 2022, reaching a peak of $79,538 million. Afterwards, a decline is observed in 2023 and 2024, with NOPBT falling to $52,567 million and $46,391 million respectively. Despite this decrease, the company maintained profitability after 2020, albeit at a lower level than the peak in 2022.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate was not reported in 2020, but from 2021 onward it gradually increased each year. The rate was 19.45% in 2021, rising slightly to 21.11% in 2022. A more marked increase was observed in 2023, with the rate reaching 27.99%, and further growing to 32.15% in 2024. This upward trend in the tax rate reflects a rising proportion of cash taxes relative to operating profits over the analyzed time frame.
- Overall Analysis
- The data reveals a period of significant financial improvement following a major loss in 2020, with profitability peaking in 2022 before partially declining in subsequent years. Cash operating taxes increased consistently, signaling higher tax expenses aligned with improved earnings. Concurrently, the effective cash tax rate showed a steady increase, indicating greater tax pressure or less tax optimization over time. The combination of rising taxes and declining profits after 2022 suggests a potential area for strategic financial management attention.