Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- 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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Solvency Ratios (Summary)
Exxon Mobil Corp., solvency ratios
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).
- Debt Ratios
- Over the five-year period, there is a clear declining trend in all measured debt ratios. The debt to equity ratio decreased from 0.43 in 2020 to 0.16 in 2024, indicating a significant reduction in the company's reliance on debt relative to equity. When including operating lease liabilities, this ratio follows a similar pattern, declining from 0.46 to 0.18.
- The debt to capital ratio also shows a steady decrease from 0.30 in 2020 to 0.14 in 2024, with the adjusted measure including operating lease liabilities dropping from 0.32 to 0.15. This reflects a strengthened capital structure with a lower proportion of debt in the company’s overall capital base.
- In terms of debt to assets, the company improved from 0.20 in 2020 to 0.09 in 2024, indicating that debt financing forms a progressively smaller fraction of total assets. The inclusion of operating lease liabilities follows the same downward trend, from 0.22 to 0.11.
- Financial Leverage
- Financial leverage has decreased gradually from 2.12 in 2020 to 1.72 in 2024. This is consistent with the reduction in debt ratios, suggesting the company has decreased its dependency on borrowed funds relative to equity.
- Interest and Fixed Charge Coverage
- Both interest coverage and fixed charge coverage ratios exhibit significant improvement between 2020 and 2022, moving from negative values in 2020 (-23.94 and -9.65, respectively) to strong positive values in 2022 (98.43 and 31.21, respectively). This suggests a considerable turnaround in earnings’ ability to cover interest and fixed charges.
- However, since 2022, these coverage ratios show a declining trend. Interest coverage decreases from 98.43 in 2022 to 50.07 in 2024, and fixed charge coverage falls from 31.21 to 15.85 in the same period, though they remain well above negative or marginal levels seen earlier. This reduction may indicate moderately lower earnings relative to financial obligations but still reflects a robust capacity to cover interest and fixed charges.
- Overall Insights
- The data reveals a clear pattern of fiscal strengthening through reduced debt levels and improved coverage ratios, particularly between 2020 and 2022. The company has been steadily deleveraging, improving its balance sheet health as seen by all debt-related ratios and the decline in financial leverage. Despite some reduction in coverage ratios after 2022, the company maintains strong ability to meet its interest and fixed charges.
- This trend may reflect strategic debt management or improved earnings capacity following periods of distress or volatility in 2020. The consistent downward movement in leverage ratios suggests a deliberate focus on risk mitigation and financial stability.
Debt Ratios
Coverage Ratios
Debt to Equity
Exxon Mobil Corp., debt to equity 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) | ||||||
| Notes and loans payable | ||||||
| Long-term debt, excluding due within one year | ||||||
| Total debt | ||||||
| Total ExxonMobil share of equity | ||||||
| Solvency Ratio | ||||||
| Debt to equity1 | ||||||
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Debt to Equity, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Debt to Equity, Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Debt to equity = Total debt ÷ Total ExxonMobil share of equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
The total debt has shown a significant decreasing trend from 2020 to 2022, dropping from approximately 67.6 billion USD to around 41.2 billion USD. Following this reduction, the debt levels have stabilized with a slight increase observed in 2023 and 2024, reaching about 41.7 billion USD. Overall, the company's debt burden has been substantially reduced over the five-year period after a steep decline in the first three years.
- Total ExxonMobil Share of Equity
-
The equity attributable to ExxonMobil shareholders has exhibited a consistent upward trend throughout the period. Starting at around 157.2 billion USD in 2020, equity rose steadily each year, reaching approximately 263.7 billion USD by 2024. The growth appears to accelerate between 2023 and 2024, indicating a strong increase in shareholders' equity which could be related to retained earnings, capital injections, or asset revaluation effects.
- Debt to Equity Ratio
-
The debt to equity ratio has declined markedly from 0.43 in 2020 to 0.16 in 2024, reflecting a significant reduction in leverage. This decrease aligns with the observed decline in total debt and simultaneous increase in equity. The ratio decline was most rapid between 2020 and 2022 and continues to improve, albeit more gradually, in subsequent years. This trend suggests an increasingly conservative capital structure with more reliance on equity financing relative to debt.
- Overall Analysis
-
The company demonstrates a clear trend toward strengthening its equity base while reducing its reliance on debt financing. The considerable reduction in total debt alongside a substantial rise in equity is indicative of improved financial stability and potentially lower financial risk. The declining leverage ratio further underscores this improved financial position. The stabilization of debt levels in the latter years, combined with accelerating equity growth, may signal a strategic shift focusing on maximizing equity value and maintaining a conservative balance sheet moving forward.
Debt to Equity (including Operating Lease Liability)
Exxon Mobil Corp., debt to equity (including operating lease liability) 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) | ||||||
| Notes and loans payable | ||||||
| Long-term debt, excluding due within one year | ||||||
| Total debt | ||||||
| Operating lease liability due within one year (included in Accounts payable and accrued liabilities) | ||||||
| Long-term operating lease liability (included in Other long-term obligations) | ||||||
| Total debt (including operating lease liability) | ||||||
| Total ExxonMobil share of equity | ||||||
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total ExxonMobil share of equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including Operating Lease Liability)
- The total debt exhibited a notable declining trend from 2020 to 2022, decreasing from $72,802 million to $46,787 million. In 2023 and 2024, this figure stabilized with marginal increases to $47,583 million and $48,188 million respectively, indicating a period of relative debt stability after a period of significant debt reduction.
- Total ExxonMobil Share of Equity
- Equity has shown a consistent upward trajectory throughout the observed periods. Starting at $157,150 million in 2020, it increased steadily each year, reaching $263,705 million in 2024. This sustained growth reflects accumulation of retained earnings or equity financing, suggesting strengthening of the company’s capital base over time.
- Debt to Equity Ratio (including Operating Lease Liability)
- The debt-to-equity ratio has significantly decreased from 0.46 in 2020 to 0.18 in 2024. This decline aligns with the reduction in total debt and the increase in equity, indicating improved financial leverage and a stronger equity position relative to debt. Lower leverage may imply a more conservative capital structure and potentially reduced financial risk.
Debt to Capital
Exxon Mobil Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes and loans payable | ||||||
| Long-term debt, excluding due within one year | ||||||
| Total debt | ||||||
| Total ExxonMobil share of equity | ||||||
| Total capital | ||||||
| Solvency Ratio | ||||||
| Debt to capital1 | ||||||
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Debt to Capital, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Debt to Capital, Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a significant decline from 67,640 million US dollars at the end of 2020 to 41,193 million US dollars by the end of 2022. This reduction represents a decrease of approximately 39%. Following this period, the debt levels stabilized, showing only minor increases to 41,573 million in 2023 and 41,710 million in 2024.
- Total Capital
- Total capital showed a downward trend from 224,790 million in 2020 to 216,281 million in 2021. However, the capital base reversed this decline in 2022, growing to 236,242 million and continuing upward through 246,375 million in 2023. A notable increase is seen in 2024 when total capital surged to 305,415 million, indicating an expansion of approximately 24% compared to the prior year.
- Debt to Capital Ratio
- The debt to capital ratio consistently decreased over the observed period, dropping from 0.3 in 2020 to 0.14 in 2024. This trend suggests an improvement in the company’s leverage position, implying either a reduction in reliance on debt financing, an increase in capital, or a combination of both factors.
Debt to Capital (including Operating Lease Liability)
Exxon Mobil Corp., debt to capital (including operating lease liability) 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) | ||||||
| Notes and loans payable | ||||||
| Long-term debt, excluding due within one year | ||||||
| Total debt | ||||||
| Operating lease liability due within one year (included in Accounts payable and accrued liabilities) | ||||||
| Long-term operating lease liability (included in Other long-term obligations) | ||||||
| Total debt (including operating lease liability) | ||||||
| Total ExxonMobil share of equity | ||||||
| Total capital (including operating lease liability) | ||||||
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt amount decreased significantly from US$72,802 million in 2020 to US$46,787 million in 2022, indicating a strong reduction in leverage during this period. Following this decline, the debt level stabilized, with a slight increase to US$47,583 million in 2023 and US$48,188 million in 2024. Overall, the trend shows a substantial deleveraging from 2020 to 2022, followed by a maintenance of a lower but relatively stable debt level.
- Total Capital (Including Operating Lease Liability)
- Total capital exhibited a declining trend from US$229,952 million in 2020 to US$221,471 million in 2021, indicating a contraction of the company's capital base early in the period. However, from 2021 onwards, total capital increased steadily, reaching US$241,836 million in 2022 and continuing to grow to US$252,385 million in 2023. The increase was more pronounced in 2024, with total capital rising sharply to US$311,893 million. This pattern suggests an overall expansion of the company's capital base after an initial dip.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio showed a consistent downward trend from 0.32 in 2020 to 0.15 in 2024. This reduction reflects improved capital structure, primarily driven by debt reduction and capital growth. The ratio dropped significantly from 0.32 to 0.19 between 2020 and 2022, then further decreased gradually to 0.15 by 2024. This trend implies lower financial leverage and potentially reduced financial risk over the analyzed period.
Debt to Assets
Exxon Mobil Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Notes and loans payable | ||||||
| Long-term debt, excluding due within one year | ||||||
| Total debt | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets1 | ||||||
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Debt to Assets, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Debt to Assets, Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt demonstrates a significant decline from 67,640 million US dollars in 2020 to 41,710 million US dollars in 2024. This reduction occurred primarily between 2020 and 2022, after which the debt levels stabilized, showing only slight increases in 2023 and 2024.
- Total Assets
- Total assets exhibit a consistent upward trend across the period, increasing from 332,750 million US dollars in 2020 to 453,475 million US dollars in 2024. The most notable growth occurs between 2023 and 2024, indicating an expansion of the asset base during this period.
- Debt to Assets Ratio
- The debt to assets ratio steadily decreases from 0.20 in 2020 to 0.09 in 2024. This trend reflects an improved capital structure and greater financial leverage, as the company's reliance on debt relative to its asset base reduces significantly over time.
Debt to Assets (including Operating Lease Liability)
Exxon Mobil Corp., debt to assets (including operating lease liability) 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) | ||||||
| Notes and loans payable | ||||||
| Long-term debt, excluding due within one year | ||||||
| Total debt | ||||||
| Operating lease liability due within one year (included in Accounts payable and accrued liabilities) | ||||||
| Long-term operating lease liability (included in Other long-term obligations) | ||||||
| Total debt (including operating lease liability) | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
-
The total debt experienced a notable decline from 72,802 million USD in 2020 to 46,787 million USD in 2022. Following this decrease, the debt level showed a slight increase reaching 48,188 million USD by 2024. Overall, there is a trend of debt reduction over the five-year period, with a mild uptick in the final years.
- Total assets
-
Total assets showed a continuous upward trend over the observed period. Beginning at 332,750 million USD in 2020, total assets increased steadily to 453,475 million USD by 2024. This consistent growth suggests expansion or accumulation of resources over time.
- Debt to assets (including operating lease liability)
-
The debt-to-assets ratio decreased markedly from 0.22 in 2020 to 0.11 in 2024. This indicates a significant reduction in leverage relative to total assets, implying improved financial stability or a more conservative capital structure. The ratio remained relatively stable between 2022 and 2023 before further decreasing in 2024.
Financial Leverage
Exxon Mobil Corp., financial leverage 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) | ||||||
| Total assets | ||||||
| Total ExxonMobil share of equity | ||||||
| Solvency Ratio | ||||||
| Financial leverage1 | ||||||
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Financial Leverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Financial Leverage, Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Financial leverage = Total assets ÷ Total ExxonMobil share of equity
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
- The total assets demonstrated a consistent upward trend over the observed periods. Starting at 332,750 million US dollars in 2020, the assets increased slightly in 2021 to 338,923 million, followed by a more significant rise in 2022 to 369,067 million. This growth continued through 2023, reaching 376,317 million, and accelerated markedly by 2024, reaching a peak of 453,475 million. This indicates a substantial expansion in the asset base, particularly notable in the last year of the series.
- Total ExxonMobil Share of Equity
- The equity attributable to ExxonMobil shareholders also exhibited a continuous increasing pattern. Beginning at 157,150 million US dollars in 2020, it grew steadily each year to 168,577 million in 2021, 195,049 million in 2022, and 204,802 million in 2023. The increase was particularly pronounced in 2024 when equity surged to 263,705 million. This growth in shareholder equity correlates with the expansion in total assets, suggesting enhanced net value for shareholders over time.
- Financial Leverage
- Financial leverage, expressed as a ratio, showed a declining trend throughout the period under review. It decreased from 2.12 in 2020 to 2.01 in 2021, then to 1.89 in 2022, followed by 1.84 in 2023, and further to 1.72 in 2024. This downward trajectory implies that the company has been gradually lowering its reliance on debt relative to equity, reflecting a stronger equity base and a conservative financial structure. The combination of growing equity and rising assets alongside declining leverage suggests improved financial stability.
Interest Coverage
Exxon Mobil Corp., interest coverage 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 income (loss) attributable to ExxonMobil | ||||||
| Add: Net income attributable to noncontrolling interest | ||||||
| Add: Income tax expense | ||||||
| Add: Interest expense | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Solvency Ratio | ||||||
| Interest coverage1 | ||||||
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Interest Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Interest Coverage, Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period.
- Earnings before interest and tax (EBIT)
- EBIT experienced a significant turnaround from a negative value of -27,725 million US dollars in 2020 to a positive 32,181 million US dollars in 2021. This upward trend continued substantially into 2022, reaching a peak of 78,551 million US dollars. However, post-2022, EBIT declined notably to 53,632 million US dollars in 2023 and further to 49,869 million US dollars by 2024, indicating a reduction in operational profitability after the peak year.
- Interest Expense
- Interest expense showed a steady decrease from 1,158 million US dollars in 2020 to 798 million US dollars in 2022, suggesting improved debt servicing costs or reduced borrowing. However, this trend reversed slightly in subsequent years, with interest expense increasing to 849 million in 2023 and further to 996 million in 2024.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the ability to pay interest on outstanding debt, showed a dramatic improvement. It started from a highly negative value of -23.94 in 2020, reflecting financial stress linked to negative EBIT. The ratio increased sharply to 33.98 in 2021, peaking at an exceptional 98.43 in 2022. Despite the decrease in EBIT after 2022, the interest coverage ratio remained robust, declining to 63.17 in 2023 and 50.07 in 2024, which still indicates a strong capacity to cover interest expenses.
Fixed Charge Coverage
Exxon Mobil Corp., fixed charge coverage 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 income (loss) attributable to ExxonMobil | ||||||
| Add: Net income attributable to noncontrolling interest | ||||||
| Add: Income tax expense | ||||||
| Add: Interest expense | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Add: Operating lease cost | ||||||
| Earnings before fixed charges and tax | ||||||
| Interest expense | ||||||
| Operating lease cost | ||||||
| Fixed charges | ||||||
| Solvency Ratio | ||||||
| Fixed charge coverage1 | ||||||
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Fixed Charge Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Fixed Charge Coverage, Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- There is a substantial fluctuation in earnings before fixed charges and tax over the five-year period. The figure was negative in 2020 at -26,172 million US dollars, indicating a loss before accounting for fixed charges and tax. However, the company experienced a significant recovery in 2021, with earnings rising sharply to 33,723 million US dollars. This positive trend continued strongly into 2022, reaching a peak of 80,327 million US dollars. Subsequently, earnings declined in 2023 to 55,608 million US dollars and further decreased in 2024 to 52,165 million US dollars. Despite the decline after 2022, earnings remained positive and substantially higher than in 2020 and 2021.
- Fixed charges
- Fixed charges demonstrated a relatively stable but slightly increasing trend across the period examined. The charges decreased somewhat from 2,711 million US dollars in 2020 to 2,489 million US dollars in 2021. Following this, fixed charges increased marginally in 2022 to 2,574 million US dollars, and then more noticeably rose in both 2023 and 2024, reaching 2,825 million and 3,292 million US dollars respectively. This upward trajectory in fixed charges, particularly in the latter years, suggests growing financial obligations or fixed costs for the company.
- Fixed charge coverage ratio
- The fixed charge coverage ratio experienced major improvements from a deeply negative value of -9.65 in 2020 to a strong positive ratio of 13.55 in 2021. This sharp increase reflects the substantial turnaround in earnings, improving the company’s ability to cover fixed charges. The ratio peaked at 31.21 in 2022, coinciding with the highest earnings before fixed charges and tax. After this peak, the coverage ratio decreased to 19.68 in 2023 and further to 15.85 in 2024. Despite the decline post-2022, the coverage ratio remained robust, indicating that the company retained a good capability to meet its fixed financial obligations throughout the period except for 2020 where it was significantly inadequate.