Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Profitability Ratios (Summary)
Exxon Mobil Corp., profitability ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| Operating profit margin | ||||||
| Net profit margin | ||||||
| Return on Investment | ||||||
| Return on equity (ROE) | ||||||
| Return on assets (ROA) | ||||||
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 financial metrics display notable fluctuations over the five-year period, indicating shifts in profitability and efficiency.
- Operating Profit Margin
- The operating profit margin showed a significant turnaround, starting with a negative margin of -14.85% in 2020, followed by a positive increase to 11.91% in 2021. It peaked at 19.82% in 2022, then experienced a gradual decline to 16.24% in 2023 and further to 14.74% in 2024. This trend suggests an initial recovery and improvement in operational efficiency, followed by some erosion of margin, though remaining comfortably above zero.
- Net Profit Margin
- Net profit margin mirrored the operating profit margin trend but at lower levels. Starting at a negative -12.57% in 2020, it rose to 8.33% in 2021 and then increased to 13.98% in 2022. Subsequently, it declined to 10.76% in 2023 and 9.93% in 2024. The pattern implies improved overall profitability post-2020 losses, with a slight weakening in the most recent years.
- Return on Equity (ROE)
- ROE demonstrated a strong recovery from -14.28% in 2020 to 13.67% in 2021, rising sharply to a high of 28.58% in 2022. However, it decreased considerably in 2023 to 17.58% and declined further to 12.77% in 2024. While ROE remains positive and improved relative to the initial year, the reduction after the 2022 peak may indicate declining investment efficiency or increased equity base.
- Return on Assets (ROA)
- ROA followed a similar trajectory, recovering from -6.74% in 2020 to 6.8% in 2021. It reached a peak of 15.1% in 2022, then decreased to 9.57% in 2023 and 7.43% in 2024. The decline after 2022 suggests a reduction in asset profitability or increased asset base relative to earnings.
Overall, the data show a pronounced recovery after 2020 losses, achieving peak profitability and returns in 2022. Since then, most metrics have declined moderately but remain positive, indicating stabilization at levels above those before 2021. The pattern suggests that while profitability and return efficiency improved markedly post-2020, recent years have seen some moderation in growth and margins.
Return on Sales
Return on Investment
Operating Profit Margin
Exxon Mobil Corp., operating profit margin 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) | ||||||
| Operating income (loss) | ||||||
| Sales and other operating revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Operating Profit Margin, 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
Operating profit margin = 100 × Operating income (loss) ÷ Sales and other operating revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income demonstrated a significant turnaround over the observed period. In 2020, the company experienced a substantial operating loss of $26,520 million. This was followed by a notable recovery in 2021 with an operating income of $32,967 million. The upward trend continued in 2022, peaking at $79,033 million. However, there was a decline in subsequent years, with operating income decreasing to $54,346 million in 2023 and further to $49,990 million in 2024. Despite the decline after 2022, operating income remained positive and substantially higher compared to the initial loss in 2020.
- Sales and Other Operating Revenue
- Sales and other operating revenue showed a consistent upward trajectory from 2020 through 2022, increasing from $178,574 million in 2020 to $398,675 million in 2022. This marked a significant growth over the three years. In 2023, revenue declined to $334,697 million but showed a slight rebound in 2024 to $339,247 million, though still below the 2022 peak. Overall, the revenue trend indicates strong growth followed by a moderate contraction and stabilization.
- Operating Profit Margin
- The operating profit margin experienced a dramatic shift from negative to positive during the period. In 2020, the margin was -14.85%, reflecting the operating loss. It improved to 11.91% in 2021 and further increased to 19.82% in 2022, indicating enhanced profitability. After 2022, the margin declined to 16.24% in 2023 and continued to decrease to 14.74% in 2024. Despite the reduction, the margin remained positive and significantly higher than the initial negative margin recorded in 2020.
- Overall Trend and Insights
- The financial data depict a recovery and growth phase from 2020 to 2022 characterized by a shift from losses to substantial profits, accompanied by an increase in sales revenue. Post-2022, both operating income and profit margin declined, suggesting some challenges impacting profitability despite relatively high sales levels. The company appears to have stabilized revenue around the $335 billion mark in 2023 and 2024 but is experiencing downward pressure on operating margins and income. This pattern may indicate increasing costs or other operational pressures affecting efficiency and profitability in the later periods.
Net Profit Margin
Exxon Mobil Corp., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to ExxonMobil | ||||||
| Sales and other operating revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Profit Margin, 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
Net profit margin = 100 × Net income (loss) attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to ExxonMobil
- The company experienced a significant turnaround in net income over the observed period. In 2020, there was a substantial net loss of $22,440 million. This shifted to a positive net income of $23,040 million in 2021, followed by a strong increase to $55,740 million in 2022. Subsequent years saw a decline in net income to $36,010 million in 2023 and further to $33,680 million in 2024. Despite the decline after 2022, the net income in the last two years remained considerably higher than the initial loss, indicating an overall recovery and profitability improvement.
- Sales and Other Operating Revenue
- Sales and other operating revenue displayed a rising trend from 2020 through 2022, increasing from $178,574 million to $398,675 million. This marked a peak in 2022, after which revenues decreased to $334,697 million in 2023. In 2024, the revenue experienced a slight increase again to $339,247 million. The fluctuations indicate volatility in sales, with a notable surge peaking in 2022, followed by moderation in subsequent years.
- Net Profit Margin
- The net profit margin mirrored the pattern observed in net income and revenues. It was negative in 2020 at -12.57%, reflecting the net loss for that year. A positive margin was recorded from 2021 onwards, increasing to 13.98% in 2022, which corresponds to the peak net income and revenue. Following 2022, the margin decreased to 10.76% in 2023 and further to 9.93% in 2024, indicating a reduction in profitability relative to revenue despite maintaining profitability each year since 2021.
- Overall Trends and Insights
- The financial data indicates recovery and growth starting in 2021 after a challenging 2020 with a net loss. The year 2022 was the most favorable period in terms of both revenue and profitability. However, the subsequent years show diminishing profitability and revenue declines from their peak in 2022, although performance remained positive. This pattern suggests responsiveness to market or operational conditions and highlights areas where margin and revenue stabilization may be necessary to sustain profitability.
Return on Equity (ROE)
Exxon Mobil Corp., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to ExxonMobil | ||||||
| Total ExxonMobil share of equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| ROE, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| ROE, 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
ROE = 100 × Net income (loss) attributable to ExxonMobil ÷ Total ExxonMobil share of equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to ExxonMobil
- There was a significant turnaround in net income from a substantial loss of $22,440 million in 2020 to positive earnings in subsequent years. The net income increased sharply to $23,040 million in 2021 and further more than doubled to $55,740 million in 2022. The amount then decreased to $36,010 million in 2023 and slightly declined again to $33,680 million in 2024. This trend indicates a strong recovery and profitability growth after 2020, followed by some moderation in profitability in the last two years.
- Total ExxonMobil Share of Equity
- The total equity attributable to ExxonMobil steadily increased each year from $157,150 million in 2020 to $168,577 million in 2021. A more pronounced increase was observed thereafter, with equity rising to $195,049 million in 2022, then $204,802 million in 2023, and reaching $263,705 million in 2024. This upward trend suggests consistent growth in shareholder value and accumulation of equity capital over the analyzed period.
- Return on Equity (ROE)
- ROE reflected the changes in profitability, starting with a negative return of -14.28% in 2020, consistent with the reported net loss for that year. Thereafter, ROE turned positive at 13.67% in 2021, surging to 28.58% in 2022, indicating exceptionally high profitability relative to equity. ROE then declined to 17.58% in 2023 and further to 12.77% in 2024, implying a reduction in the efficiency of equity utilization or lower profitability margins despite continued positive returns.
- Summary of Trends and Insights
- The data depicts a strong recovery from a substantial loss in 2020 to robust profitability in the following years, peaking in 2022. Despite the reduced net income and ROE in 2023 and 2024 compared to the peak year, the company maintained positive earnings and healthy returns on equity. Concurrently, the steady increase in total equity indicates growing shareholder investment or retained earnings. The decline in ROE after 2022 suggests that while equity base expanded, profit growth did not keep pace at the same rate, which may warrant further analysis of operational efficiency or market conditions.
Return on Assets (ROA)
Exxon Mobil Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to ExxonMobil | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Occidental Petroleum Corp. | ||||||
| ROA, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| ROA, 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
ROA = 100 × Net income (loss) attributable to ExxonMobil ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reveals significant fluctuations in net income and varying trends in total assets and return on assets (ROA) over the period analyzed.
- Net Income (Loss) Attributable to ExxonMobil (US$ in millions)
- The net income exhibited a substantial turnaround from a negative figure of -22,440 million in 2020 to a positive 23,040 million in 2021. This upward trend continued with a peak of 55,740 million in 2022. However, there was a notable decline in net income in subsequent years, falling to 36,010 million in 2023 and further to 33,680 million in 2024, indicating some volatility after the peak in 2022.
- Total Assets (US$ in millions)
- Total assets steadily increased throughout the period. Starting from 332,750 million in 2020, assets grew moderately each year, reaching 376,317 million by 2023. A more pronounced increase occurred in 2024, with total assets rising to 453,475 million. This growth suggests continued investment or asset accumulation by the company.
- Return on Assets (ROA, %)
- ROA mirrored the trend in net income. It was negative in 2020 at -6.74%, corresponding to the net loss that year. The ratio improved significantly to 6.8% in 2021 and peaked at 15.1% in 2022, aligning with the highest net income observed. Thereafter, ROA decreased to 9.57% in 2023 and further to 7.43% in 2024, reflecting the decline in profitability relative to asset base despite the asset growth.
Overall, the data indicates strong recovery and profitability improvement after 2020, with 2022 marking a peak year. The decline in profitability metrics after 2022, contrasted with growing assets, may suggest challenges in converting asset growth into proportional income. Continuous monitoring of these trends would be prudent to assess operational efficiency and asset utilization.