ExxonMobil Holdings Corp. (NYSE:XOM)

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ExxonMobil Holdings Corp., effective income tax rate (EITR) reconciliation

		Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
	U.S. federal statutory theoretical tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective income tax rate	28.00%	33.00%	33.00%	33.00%	31.00%

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).

An analysis of the tax position reveals a consistent divergence between the U.S. federal statutory theoretical tax rate and the effective income tax rate (EITR). While the statutory rate remained unchanged at 21.00% throughout the period from 2021 to 2025, the EITR remained systematically higher, indicating the influence of additional tax jurisdictions, non-deductible expenses, or specific regulatory levies.

EITR Trend and Stability: The EITR rose from 31.00% in 2021 to 33.00% in 2022. This rate subsequently entered a period of absolute stability, remaining unchanged at 33.00% for three consecutive years through 2024.
Statutory Variance Analysis: A significant premium over the statutory benchmark is evident across the entire period. The gap between the statutory rate and the EITR peaked between 2022 and 2024, where the effective rate exceeded the statutory rate by 12 percentage points.
Recent Rate Compression: A downward shift is observed in 2025, with the EITR decreasing to 28.00%. This represents a 5 percentage point reduction from the previous plateau, although the EITR still maintains a 7 percentage point surplus over the 21.00% statutory theoretical rate.

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ExxonMobil Holdings Corp., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Pension and other postretirement benefits	972)	1,365)	1,777)	1,754)	3,687)
Asset retirement obligations	3,249)	3,156)	3,532)	3,045)	2,865)
Tax loss carryforwards	4,740)	4,575)	4,317)	4,862)	6,914)
Other assets	7,016)	7,308)	6,361)	6,948)	7,694)
Deferred tax assets, gross	15,977)	16,404)	15,987)	16,609)	21,160)
Asset valuation allowances	(2,649)	(2,516)	(2,641)	(2,650)	(2,634)
Deferred tax assets, net	13,328)	13,888)	13,346)	13,959)	18,526)
Property, plant and equipment	(41,427)	(40,881)	(26,627)	(25,607)	(27,888)
Other liabilities	(8,358)	(8,113)	(7,534)	(7,401)	(6,353)
Deferred tax liabilities	(49,785)	(48,994)	(34,161)	(33,008)	(34,241)
Net deferred tax assets (liabilities)	(36,457)	(35,106)	(20,815)	(19,049)	(15,715)

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 net deferred tax position exhibits a widening deficit, transitioning from a net liability of 15,715 million USD in 2021 to 36,457 million USD by 2025. This trajectory is primarily driven by a substantial increase in deferred tax liabilities, which significantly outweighs the gradual reduction in deferred tax assets.

Deferred Tax Asset Trends: Gross deferred tax assets decreased from 21,160 million USD in 2021 to 15,977 million USD in 2025. A primary contributor to this decline is the reduction in pension and other postretirement benefits, which fell from 3,687 million USD to 972 million USD over the period. Tax loss carryforwards experienced an initial decline between 2021 and 2023 before stabilizing in the 4,500 to 4,700 million USD range. Conversely, asset retirement obligations showed a general upward trend, increasing from 2,865 million USD in 2021 to 3,249 million USD in 2025. Asset valuation allowances remained relatively constant, hovering around 2.6 billion USD, resulting in a net deferred tax asset position that declined from 18,526 million USD to 13,328 million USD.
Deferred Tax Liability Trends: Total deferred tax liabilities expanded significantly, rising from 34,241 million USD in 2021 to 49,785 million USD in 2025. The most prominent driver of this increase is the deferred tax liability associated with property, plant, and equipment, which saw a sharp escalation between 2023 and 2024, moving from 26,627 million USD to 40,881 million USD, and concluding at 41,427 million USD in 2025. Other liabilities also exhibited a steady climb, increasing from 6,353 million USD in 2021 to 8,358 million USD in 2025.
Net Position Analysis: The net deferred tax liability grew steadily from 2021 through 2023, followed by a precipitous increase in 2024. The shift from a net liability of 20,815 million USD in 2023 to 35,106 million USD in 2024 indicates a significant change in the timing differences between accounting and taxable income, largely attributed to the surge in liabilities related to property, plant, and equipment.

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ExxonMobil Holdings Corp., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
	Deferred income tax assets (included in Other assets, including intangibles, net)	3,759)	3,936)	3,637)	3,825)	4,450)
	Deferred income tax liabilities	40,216)	39,042)	24,452)	22,874)	20,165)

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).

An analysis of the deferred tax accounts reveals a widening disparity between deferred tax assets and liabilities over the five-year period ending December 31, 2025. While deferred assets experienced mild volatility without a clear directional trend, deferred liabilities exhibited substantial and sustained growth, particularly in the latter half of the period.

Deferred Income Tax Assets: Values shifted from 4,450 million in 2021 to 3,759 million in 2025. A period of decline was noted between 2021 and 2023, followed by a brief recovery in 2024 and a subsequent slight decrease in 2025. The overall movement suggests a relatively stable but non-growing asset base.
Deferred Income Tax Liabilities: A significant upward trajectory is observed, with the balance increasing from 20,165 million in 2021 to 40,216 million in 2025. The most pronounced increase occurred between 2023 and 2024, where the liability rose by approximately 14,590 million, indicating a substantial increase in temporary differences that will result in future taxable amounts.
Net Deferred Tax Position: The net deferred tax liability position has expanded considerably. The gap between liabilities and assets grew from 15,715 million in 2021 to 36,457 million in 2025, reflecting a significant increase in future tax obligations relative to available deferred tax benefits.

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ExxonMobil Holdings Corp., Financial Data: Reported vs. Adjusted

ExxonMobil Holdings Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Adjustment to Total Assets
Total assets (as reported)	448,980)	453,475)	376,317)	369,067)	338,923)
Less: Noncurrent deferred tax assets, net	3,759)	3,936)	3,637)	3,825)	4,450)
Total assets (adjusted)	445,221)	449,539)	372,680)	365,242)	334,473)
Adjustment to Total Liabilities
Total liabilities (as reported)	182,354)	182,869)	163,779)	166,594)	163,240)
Less: Noncurrent deferred tax liabilities, net	40,216)	39,042)	24,452)	22,874)	20,165)
Total liabilities (adjusted)	142,138)	143,827)	139,327)	143,720)	143,075)
Adjustment to Total ExxonMobil Share Of Equity
Total ExxonMobil share of equity (as reported)	259,386)	263,705)	204,802)	195,049)	168,577)
Less: Net deferred tax assets (liabilities)	(36,457)	(35,106)	(20,815)	(19,049)	(15,715)
Total ExxonMobil share of equity (adjusted)	295,843)	298,811)	225,617)	214,098)	184,292)
Adjustment to Net Income Attributable To ExxonMobil
Net income attributable to ExxonMobil (as reported)	28,844)	33,680)	36,010)	55,740)	23,040)
Add: Deferred income tax expense (benefit)	968)	(830)	944)	3,583)	(44)
Net income attributable to ExxonMobil (adjusted)	29,812)	32,850)	36,954)	59,323)	22,996)

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 financial trajectory from 2021 to 2025 reflects a period of asset expansion and equity growth, with a notable peak in reported assets and equity occurring in 2024. A consistent divergence is observed between reported and adjusted figures resulting from the removal of deferred taxes, which significantly alters the presentation of the balance sheet strength and net income.

Balance Sheet Adjustment Trends: The removal of deferred taxes results in a systematic reduction of both total assets and total liabilities. While the adjustment to assets is relatively marginal, the adjustment to liabilities is substantial. Reported liabilities increased from 163,240 million USD in 2021 to 182,354 million USD in 2025; however, adjusted liabilities remained relatively stable, fluctuating between 139,327 million USD and 143,827 million USD over the same period. This indicates that a growing portion of the reported liabilities consists of deferred tax obligations.
Equity Position and Solvency: The adjustment for deferred taxes yields a significant increase in the ExxonMobil share of equity. Adjusted equity consistently exceeds reported equity, with the variance widening over time. In 2021, the difference was 15,715 million USD, which increased to 36,457 million USD by 2025. This suggests that the removal of deferred tax liabilities outweighs the removal of deferred tax assets, thereby enhancing the adjusted net worth of the entity.
Net Income Variance: Adjusted net income exhibits volatility mirroring the reported net income, with a prominent peak in 2022. The impact of deferred tax removal on net income is inconsistent in direction but generally smaller in magnitude compared to balance sheet adjustments. For instance, in 2022, adjusted net income was higher than reported income by 3,583 million USD, whereas in 2024, adjusted net income was lower than reported income by 830 million USD.
Asset and Liability Divergence: A pronounced increase in the gap between reported and adjusted liabilities occurred between 2023 and 2024. Reported liabilities rose by approximately 19,090 million USD in that single year, while adjusted liabilities increased by only 4,500 million USD. This indicates a significant accumulation of deferred tax liabilities during the 2024 fiscal period.

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ExxonMobil Holdings Corp., Financial Ratios: Reported vs. Adjusted

ExxonMobil Holdings Corp., adjusted financial ratios

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net Profit Margin
Reported net profit margin	8.91%	9.93%	10.76%	13.98%	8.33%
Adjusted net profit margin	9.20%	9.68%	11.04%	14.88%	8.31%
Total Asset Turnover
Reported total asset turnover	0.72	0.75	0.89	1.08	0.82
Adjusted total asset turnover	0.73	0.75	0.90	1.09	0.83
Financial Leverage
Reported financial leverage	1.73	1.72	1.84	1.89	2.01
Adjusted financial leverage	1.50	1.50	1.65	1.71	1.81
Return on Equity (ROE)
Reported ROE	11.12%	12.77%	17.58%	28.58%	13.67%
Adjusted ROE	10.08%	10.99%	16.38%	27.71%	12.48%
Return on Assets (ROA)
Reported ROA	6.42%	7.43%	9.57%	15.10%	6.80%
Adjusted ROA	6.70%	7.31%	9.92%	16.24%	6.88%

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).

Financial performance across all metrics indicates a significant peak in 2022, followed by a consistent downward trend through 2025. This cyclical pattern is most evident in profitability and asset utilization ratios, where the gains realized in 2022 were gradually eroded over the subsequent three years.

Profitability and Return Metrics: Net profit margins peaked in 2022 at 13.98% (reported) and 14.88% (adjusted) before declining to 8.91% and 9.20% respectively by 2025. A similar trajectory is observed in Return on Equity (ROE), which reached a high of 28.58% reported in 2022 and contracted to 11.12% by 2025. Return on Assets (ROA) followed this trend, peaking in 2022 at 15.10% reported and decreasing to 6.42% by 2025. The convergence of these metrics suggests a period of heightened profitability in 2022 followed by a return to lower margin levels.
Operational Efficiency and Capital Structure: Total asset turnover reached its maximum efficiency in 2022 with a reported ratio of 1.08, subsequently declining to 0.72 by 2025, indicating a decrease in the revenue generated per unit of asset. Financial leverage showed a steady improvement, declining from a reported 2.01 in 2021 to 1.73 in 2025, reflecting a reduction in the reliance on debt or a strengthening of the equity base over the period.
Impact of Deferred Tax Adjustments: The removal of deferred taxes reveals distinct variations between reported and adjusted figures. In the case of financial leverage, the adjusted ratios are consistently and significantly lower than reported ratios, with the gap persisting through 2025 (1.50 adjusted versus 1.73 reported), suggesting that deferred tax liabilities contribute materially to the reported leverage. Conversely, the adjusted net profit margin remained higher than the reported margin from 2022 through 2025. Regarding returns, the adjustment led to a lower ROE but a slightly higher ROA in the final years of the period, indicating that the tax adjustment disproportionately affects the equity component of the balance sheet compared to total assets.

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	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to ExxonMobil	28,844)	33,680)	36,010)	55,740)	23,040)
Sales and other operating revenue	323,905)	339,247)	334,697)	398,675)	276,692)
Profitability Ratio
Net profit margin¹	8.91%	9.93%	10.76%	13.98%	8.33%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to ExxonMobil	29,812)	32,850)	36,954)	59,323)	22,996)
Sales and other operating revenue	323,905)	339,247)	334,697)	398,675)	276,692)
Profitability Ratio
Adjusted net profit margin²	9.20%	9.68%	11.04%	14.88%	8.31%

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 Net profit margin = 100 × Net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 28,844 ÷ 323,905 = 8.91%

² Adjusted net profit margin = 100 × Adjusted net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 29,812 ÷ 323,905 = 9.20%

The financial performance from 2021 to 2025 is characterized by a significant peak in profitability during 2022, followed by a multi-year period of gradual contraction in both net income and profit margins.

Net Income Trajectory: Reported net income experienced a substantial increase from US$ 23,040 million in 2021 to a peak of US$ 55,740 million in 2022. Following this peak, a consistent downward trend is observed, with figures declining to US$ 36,010 million in 2023, US$ 33,680 million in 2024, and US$ 28,844 million by 2025. Adjusted net income followed a nearly identical pattern, peaking at US$ 59,323 million in 2022 before moderating to US$ 29,812 million in 2025.
Adjusted Net Profit Margin Analysis: The adjusted net profit margin demonstrated significant volatility, rising from 8.31% in 2021 to a high of 14.88% in 2022. In the subsequent three years, the margin underwent a steady decline, falling to 11.04% in 2023, 9.68% in 2024, and ending at 9.20% in 2025. This indicates a reduction in the percentage of revenue converted to adjusted profit after the 2022 spike.
Comparison of Reported and Adjusted Metrics: A notable divergence between reported and adjusted figures is evident in 2022, where adjusted net income exceeded reported net income by US$ 3,583 million. While the reported net profit margin peaked at 13.98% in 2022, the adjusted margin was higher at 14.88%. From 2023 through 2025, the adjusted net profit margin consistently remained above the reported net profit margin, suggesting that non-recurring items or specific tax adjustments negatively impacted reported earnings more than adjusted earnings during this period.

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	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenue	323,905)	339,247)	334,697)	398,675)	276,692)
Total assets	448,980)	453,475)	376,317)	369,067)	338,923)
Activity Ratio
Total asset turnover¹	0.72	0.75	0.89	1.08	0.82
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenue	323,905)	339,247)	334,697)	398,675)	276,692)
Adjusted total assets	445,221)	449,539)	372,680)	365,242)	334,473)
Activity Ratio
Adjusted total asset turnover²	0.73	0.75	0.90	1.09	0.83

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 Total asset turnover = Sales and other operating revenue ÷ Total assets
= 323,905 ÷ 448,980 = 0.72

² Adjusted total asset turnover = Sales and other operating revenue ÷ Adjusted total assets
= 323,905 ÷ 445,221 = 0.73

Analysis of the asset utilization metrics reveals a period of expansion in the total asset base accompanied by a fluctuating efficiency trend. While total assets grew consistently from 2021 through 2024, the efficiency with which these assets generated revenue peaked in 2022 and declined thereafter.

Asset Base Expansion: Reported total assets increased from 338,923 million USD in 2021 to a peak of 453,475 million USD in 2024. Adjusted total assets mirrored this growth, rising from 334,473 million USD in 2021 to 449,539 million USD in 2024, before experiencing a slight contraction to 445,221 million USD in 2025.
Asset Turnover Efficiency: The adjusted total asset turnover ratio reached a maximum of 1.09 in 2022, suggesting optimal asset productivity during that period. Subsequently, a steady decline is observed, with the ratio falling to 0.90 in 2023, 0.75 in 2024, and 0.73 in 2025. This inverse relationship between the growing asset base and the declining turnover ratio indicates that revenue growth failed to keep pace with the expansion of assets.
Reported versus Adjusted Variance: A marginal difference exists between reported and adjusted figures. The adjusted total asset turnover remained slightly higher than the reported ratio throughout the analyzed period, though the variance is minimal. This suggests that the adjustments made to the asset base had a negligible impact on the overall interpretation of operational efficiency.

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	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
As Reported
Selected Financial Data (US$ in millions)
Total assets	448,980)	453,475)	376,317)	369,067)	338,923)
Total ExxonMobil share of equity	259,386)	263,705)	204,802)	195,049)	168,577)
Solvency Ratio
Financial leverage¹	1.73	1.72	1.84	1.89	2.01
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	445,221)	449,539)	372,680)	365,242)	334,473)
Adjusted total ExxonMobil share of equity	295,843)	298,811)	225,617)	214,098)	184,292)
Solvency Ratio
Adjusted financial leverage²	1.50	1.50	1.65	1.71	1.81

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 Financial leverage = Total assets ÷ Total ExxonMobil share of equity
= 448,980 ÷ 259,386 = 1.73

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total ExxonMobil share of equity
= 445,221 ÷ 295,843 = 1.50

The financial trajectory between 2021 and 2025 is characterized by a significant expansion of the asset base and a corresponding increase in equity. Reported total assets rose from US$ 338,923 million in 2021 to a peak of US$ 453,475 million in 2024, followed by a slight contraction to US$ 448,980 million by the end of 2025. Adjusted total assets followed a nearly identical pattern, indicating that the adjustments made to the asset base are relatively minor in proportion to the total volume.

Equity Analysis: A sustained increase in equity is evident over the five-year period. Reported equity grew from US$ 168,577 million in 2021 to US$ 259,386 million in 2025. A notable divergence exists between reported and adjusted equity, with the adjusted figures remaining consistently higher. Adjusted equity grew from US$ 184,292 million in 2021 to US$ 295,843 million in 2025, suggesting that specific accounting adjustments—likely pertaining to income taxes—materially enhance the recorded equity position.
Financial Leverage Trends: Financial leverage exhibits a consistent downward trend, signaling a reduction in financial risk and a stronger solvency position. Reported financial leverage decreased from 2.01 in 2021 to 1.73 in 2025. This trend is mirrored and amplified in the adjusted financial leverage, which fell from 1.81 in 2021 to 1.50 in 2025. The adjusted leverage ratio remains consistently lower than the reported ratio, reflecting the impact of the higher adjusted equity base.

The data indicates a strategic shift toward a less leveraged capital structure. The most significant improvement in both reported and adjusted leverage occurred between 2023 and 2024, which coincides with the most substantial growth phase in total equity. The stability of the adjusted financial leverage at 1.50 across 2024 and 2025 suggests that the company has reached a plateau in its leverage reduction efforts.

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	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to ExxonMobil	28,844)	33,680)	36,010)	55,740)	23,040)
Total ExxonMobil share of equity	259,386)	263,705)	204,802)	195,049)	168,577)
Profitability Ratio
ROE¹	11.12%	12.77%	17.58%	28.58%	13.67%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to ExxonMobil	29,812)	32,850)	36,954)	59,323)	22,996)
Adjusted total ExxonMobil share of equity	295,843)	298,811)	225,617)	214,098)	184,292)
Profitability Ratio
Adjusted ROE²	10.08%	10.99%	16.38%	27.71%	12.48%

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 ROE = 100 × Net income attributable to ExxonMobil ÷ Total ExxonMobil share of equity
= 100 × 28,844 ÷ 259,386 = 11.12%

² Adjusted ROE = 100 × Adjusted net income attributable to ExxonMobil ÷ Adjusted total ExxonMobil share of equity
= 100 × 29,812 ÷ 295,843 = 10.08%

The financial performance over the five-year period is characterized by a significant volatility peak in 2022, followed by a multi-year contraction in profitability and a simultaneous expansion of the equity base. While nominal income figures remained higher in the latter years than in 2021, the efficiency of capital utilization, as measured by Return on Equity (ROE), shows a clear downward trajectory after the 2022 peak.

Net Income Trends: Both reported and adjusted net income experienced a dramatic surge in 2022, with adjusted net income reaching a peak of 59,323 million USD. Following this peak, a consistent decline is observed through 2025. By the end of 2025, adjusted net income decreased to 29,812 million USD, representing a significant reduction from the 2022 high, although it remains higher than the 2021 levels.
Equity Base Expansion: The total share of equity exhibited a steady upward trend from 2021 to 2024. Reported equity grew from 168,577 million USD in 2021 to a peak of 263,705 million USD in 2024, with a marginal decline observed in 2025. Adjusted equity followed a similar trajectory, maintaining a consistently higher valuation than reported equity throughout the period, peaking at 298,811 million USD in 2024.
Return on Equity (ROE) Analysis: ROE metrics mirror the volatility of net income, peaking in 2022 at 28.58% for reported ROE and 27.71% for adjusted ROE. A sustained decline followed, with adjusted ROE falling to 10.08% by 2025. This compression is attributed to the dual impact of declining net income and a substantially larger equity denominator. The adjusted ROE remained consistently lower than the reported ROE from 2021 through 2025, reflecting the higher valuation of adjusted equity.

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	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to ExxonMobil	28,844)	33,680)	36,010)	55,740)	23,040)
Total assets	448,980)	453,475)	376,317)	369,067)	338,923)
Profitability Ratio
ROA¹	6.42%	7.43%	9.57%	15.10%	6.80%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to ExxonMobil	29,812)	32,850)	36,954)	59,323)	22,996)
Adjusted total assets	445,221)	449,539)	372,680)	365,242)	334,473)
Profitability Ratio
Adjusted ROA²	6.70%	7.31%	9.92%	16.24%	6.88%

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 ROA = 100 × Net income attributable to ExxonMobil ÷ Total assets
= 100 × 28,844 ÷ 448,980 = 6.42%

² Adjusted ROA = 100 × Adjusted net income attributable to ExxonMobil ÷ Adjusted total assets
= 100 × 29,812 ÷ 445,221 = 6.70%

The financial performance from 2021 to 2025 is characterized by a significant volatility in profitability alongside a general expansion of the asset base. A pronounced peak in net income occurred in 2022, followed by a multi-year contraction. During the same period, total assets experienced a steady upward trajectory, peaking in 2024, which contributed to a compression of the return on assets (ROA) in the latter years of the analysis.

Net Income Analysis: Adjusted net income exhibited a sharp increase from US$ 22,996 million in 2021 to a peak of US$ 59,323 million in 2022. Following this peak, a consistent downward trend is observed, with adjusted net income falling to US$ 36,954 million in 2023, US$ 32,850 million in 2024, and reaching US$ 29,812 million by 2025. The variance between reported and adjusted net income remained relatively narrow across the period, with the most notable divergence occurring in 2022.
Asset Base Evolution: Total adjusted assets grew from US$ 334,473 million in 2021 to US$ 445,221 million in 2025. The growth was most aggressive between 2023 and 2024, where adjusted assets rose from US$ 372,680 million to US$ 449,539 million. This indicates a significant expansion of the balance sheet that did not yield a proportional increase in net income during the same timeframe.
Adjusted Return on Assets (ROA) Trends: The adjusted ROA mirrored the trajectory of net income, surging from 6.88% in 2021 to a high of 16.24% in 2022. However, the ratio declined steadily thereafter, falling to 9.92% in 2023, 7.31% in 2024, and 6.70% in 2025. The decline in ROA is attributable to the dual impact of diminishing net income and a substantially larger asset base, returning the efficiency ratio to levels slightly below those seen at the start of the period.

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