Analysis of Debt
Total Debt (Carrying Amount)
ExxonMobil Holdings Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The total debt carrying amount exhibited a non-linear trajectory over the analyzed five-year period, characterized by an initial contraction followed by a phase of relative stability and a subsequent increase. Total obligations decreased from 47,704 million US dollars in 2021 to 41,193 million US dollars in 2022, remaining relatively stable through 2024 before rising to 43,537 million US dollars by December 31, 2025.
- Long-term Debt Trajectory
- A consistent and sustained downward trend is observed in long-term debt excluding portions due within one year. This component decreased monotonically every year, falling from 43,428 million US dollars in 2021 to 34,241 million US dollars in 2025. This represents a steady reduction in long-term leverage throughout the period.
- Short-term Obligations Volatility
- Notes and loans payable demonstrated significant fluctuations. After a sharp decline to 634 million US dollars in 2022, this item experienced a rapid recovery and subsequent growth, reaching 9,296 million US dollars by 2025. The magnitude of the increase in short-term notes during the final three years of the period served as the primary driver for the rise in total debt.
- Debt Composition Shift
- The overall debt profile shifted from a heavy reliance on long-term instruments toward a higher proportion of short-term liabilities. While the total debt carrying amount in 2025 remained lower than the 2021 peak, the growth in notes and loans payable effectively offset the strategic reductions achieved in long-term debt obligations.
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Total Debt (Fair Value)
| Dec 31, 2025 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Notes and loans payable | 9,296) |
| Long-term debt, excluding finance lease obligations | 28,587) |
| Long-term finance lease liability | 2,406) |
| Total debt (fair value) | 40,289) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.93 |
Based on: 10-K (reporting date: 2025-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 3.51%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.80% | 9,296) | 353) | |
| 3.29% | 1,000) | 33) | |
| 2.44% | 1,250) | 30) | |
| 3.48% | 2,032) | 71) | |
| 2.61% | 2,016) | 53) | |
| 3.00% | 750) | 22) | |
| 4.23% | 2,043) | 86) | |
| 3.57% | 986) | 35) | |
| 4.11% | 2,497) | 103) | |
| 3.10% | 1,500) | 46) | |
| 4.33% | 2,750) | 119) | |
| 3.45% | 2,750) | 95) | |
| 0.52% | 1,175) | 6) | |
| 0.84% | 1,175) | 10) | |
| 1.41% | 1,175) | 17) | |
| 6.10% | 186) | 11) | |
| 6.75% | 282) | 19) | |
| 6.38% | 219) | 14) | |
| 7.20% | 247) | 18) | |
| 1.90% | 958) | 18) | |
| 2.15% | 869) | 19) | |
| 4.13% | 133) | 5) | |
| 2.54% | 2,005) | 51) | |
| 4.67% | 6,313) | 295) | |
| Total | 43,607) | 1,530) | |
| 3.51% | |||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,530 ÷ 43,607 = 3.51%
Interest Costs Incurred
ExxonMobil Holdings Corp., interest costs incurred
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The total interest costs incurred exhibited a general upward trajectory between 2021 and 2024, increasing from 1,602 million USD to a peak of 2,272 million USD, before experiencing a moderate contraction to 2,137 million USD in 2025. This overall growth reflects an increase in the total cost of debt servicing over the analyzed period.
- Total Interest Costs Incurred
- A steady climb is observed from 2021 through 2024, with the most significant year-over-year increase occurring between 2022 and 2023, where costs rose from 1,636 million USD to 2,001 million USD. The subsequent decline in 2025 suggests a stabilization or reduction in overall borrowing costs.
- Interest Capitalization Trends
- There is a consistent and uninterrupted increase in interest capitalized, which grew from 655 million USD in 2021 to 1,534 million USD by 2025. This continuous rise indicates a substantial increase in the volume of long-term capital projects and investments where financing costs are being allocated to the cost of assets rather than being expensed immediately.
- Interest Expense Volatility
- Unlike capitalized interest, the interest expense recognized in the period showed significant fluctuation. After a dip in 2022 to 798 million USD, expenses rose to 996 million USD in 2024, before dropping sharply to 603 million USD in 2025. This suggests a strategic shift in how debt is structured or a reduction in short-term operational debt.
- Cost Composition Analysis
- A structural shift in the composition of interest costs is evident. In 2021, capitalized interest represented approximately 41% of total interest costs incurred. By 2025, this proportion increased to approximately 72%. This transition underscores a growing reliance on debt for capital expenditure and long-term asset development relative to operational financing.
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Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2025-12-31), 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).
2025 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 41,871 ÷ 603 = 69.44
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 41,871 ÷ 2,137 = 19.59
The analysis of debt service capacity between 2021 and 2025 reveals a period of significant volatility followed by a stabilization of coverage ratios. While both metrics indicate a robust ability to meet interest obligations, a notable divergence exists in the trajectories of the ratios when capitalized interest is factored into the calculations.
- Interest coverage ratio (without capitalized interest)
- This metric experienced a sharp increase from 33.98 in 2021 to a peak of 98.43 in 2022. Following this peak, a downward trend was observed through 2024, with the ratio declining to 50.07. A recovery is evident by the end of 2025, with the ratio rising to 69.44, suggesting a renewed improvement in operating earnings relative to non-capitalized interest expenses.
- Adjusted interest coverage ratio (with capitalized interest)
- The adjusted ratio followed a similar upward trajectory in 2022, reaching 48.01 from an initial 20.09 in 2021. Unlike the non-capitalized ratio, the adjusted figure exhibited a consistent decline from 2022 through 2025, ending the period at 19.59. This steady decrease indicates that the inclusion of capitalized interest has exerted a persistent downward pressure on the coverage profile over the final three years of the observed period.
- Comparative analysis of capitalization impact
- A substantial gap persists between the two ratios throughout the five-year period, highlighting the significant role of capitalized interest in the financial structure. By 2025, a marked divergence is observed; while the ratio without capitalized interest rebounded to 69.44, the adjusted ratio continued to decline to 19.59. This suggests that while operational coverage remains strong, the total interest burden, inclusive of capitalized amounts, has grown relative to the earnings available for coverage compared to the 2022 peak.
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