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.
Return on Invested Capital (ROIC)
ExxonMobil Holdings Corp., ROIC calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 28,426) | 31,476) | 37,855) | 62,749) | 32,736) | |
| Invested capital2 | 371,757) | 378,995) | 307,196) | 297,049) | 272,673) | |
| Performance Ratio | ||||||
| ROIC3 | 7.65% | 8.31% | 12.32% | 21.12% | 12.01% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Chevron Corp. | 4.76% | 9.64% | 9.17% | 19.68% | 10.04% | |
| ConocoPhillips | 8.50% | 9.38% | 15.20% | 28.02% | 13.45% | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 28,426 ÷ 371,757 = 7.65%
4 Click competitor name to see calculations.
The analysis of return on invested capital reveals a period of significant volatility followed by a sustained contraction in capital efficiency between 2021 and 2025.
- Net Operating Profit After Taxes (NOPAT)
- A sharp increase in NOPAT occurred in 2022, reaching a peak of 62,749 million US dollars. This peak was followed by a consistent downward trend, with figures declining to 37,855 million in 2023, 31,476 million in 2024, and ultimately 28,426 million by the end of 2025, marking a decrease below 2021 levels.
- Invested Capital Trends
- The capital base expanded steadily from 272,673 million US dollars in 2021 to a peak of 378,995 million in 2024. Although a marginal reduction to 371,757 million was recorded in 2025, the total invested capital remained significantly higher than the initial 2021 position, indicating substantial growth in the asset base.
- Return on Invested Capital (ROIC) Performance
- ROIC reached a maximum of 21.12% in 2022, coinciding with the surge in operating profits. Subsequently, a persistent decline is observed, with the ratio falling to 12.32% in 2023, 8.31% in 2024, and 7.65% in 2025. The erosion of the ROIC percentage is attributed to the dual impact of diminishing NOPAT and an expanding denominator of invested capital, signifying a reduction in the efficiency of capital deployment over the final three years of the period.
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Decomposition of ROIC
ExxonMobil Holdings Corp., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The Return on Invested Capital (ROIC) exhibited significant volatility over the observed five-year period, characterized by a sharp peak in 2022 followed by a sustained downward trajectory. After reaching a maximum of 21.12% in 2022, the ROIC declined sequentially to 7.65% by the end of 2025, indicating a deterioration in the overall efficiency of capital deployment.
- Operating Profit Margin (OPM)
- Profitability trends closely mirrored the trajectory of the ROIC. The operating profit margin peaked at 19.95% in 2022 but experienced a steady contraction thereafter, falling to 12.09% by 2025. This suggests a reduction in operating efficiency or a compression in pricing power over the latter three years of the period.
- Turnover of Capital (TO)
- Capital efficiency demonstrated a similar pattern, with a peak ratio of 1.34 in 2022. A subsequent decline occurred, with the ratio dropping below the 1.0 threshold in 2024 (0.90) and continuing to 0.87 in 2025. This indicates that the organization generated less revenue per unit of invested capital in the final two years compared to the 2021-2023 period.
- Effective Cash Tax Rate Impact (1 – CTR)
- The after-tax multiplier generally trended downward from 80.55% in 2021 to a low of 67.85% in 2024, reflecting an increase in the effective cash tax rate. A partial recovery to 72.60% was noted in 2025, though this improvement was insufficient to offset the declines in operating margin and capital turnover.
The decomposition of ROIC reveals that the exceptional performance in 2022 was driven by a simultaneous optimization of both operating margins and capital turnover. The subsequent erosion of ROIC is attributable to a combined negative impact from narrowing margins and diminished asset productivity, further pressured by a general increase in the effective tax burden between 2021 and 2024.
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Operating Profit Margin (OPM)
ExxonMobil Holdings Corp., OPM calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 28,426) | 31,476) | 37,855) | 62,749) | 32,736) | |
| Add: Cash operating taxes2 | 10,730) | 14,916) | 14,713) | 16,789) | 7,904) | |
| Net operating profit before taxes (NOPBT) | 39,156) | 46,391) | 52,567) | 79,538) | 40,640) | |
| Sales and other operating revenue | 323,905) | 339,247) | 334,697) | 398,675) | 276,692) | |
| Profitability Ratio | ||||||
| OPM3 | 12.09% | 13.67% | 15.71% | 19.95% | 14.69% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Chevron Corp. | 10.64% | 14.88% | 13.94% | 22.85% | 15.98% | |
| ConocoPhillips | 22.38% | 25.80% | 29.62% | 36.63% | 29.99% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
OPM = 100 × NOPBT ÷ Sales and other operating revenue
= 100 × 39,156 ÷ 323,905 = 12.09%
4 Click competitor name to see calculations.
Financial performance between 2021 and 2025 exhibits a distinct peak in profitability followed by a sustained multi-year contraction in operating margins.
- Operating Profit Margin Trend
- The operating profit margin experienced a significant surge in 2022, reaching a peak of 19.95% compared to 14.69% in 2021. This peak was followed by a consistent downward trajectory, with the margin declining to 15.71% in 2023, 13.67% in 2024, and reaching a period low of 12.09% by 2025.
- Analysis of Net Operating Profit and Revenue
- The 2022 expansion was driven by a substantial increase in both sales and net operating profit before taxes (NOPBT), with NOPBT nearly doubling from 40,640 million US$ to 79,538 million US$. Following this peak, NOPBT entered a period of steady decline, falling to 52,567 million US$ in 2023 and continuing downward to 39,156 million US$ by 2025.
- Revenue Correlation and Margin Compression
- A divergence is observed between revenue and profitability from 2023 to 2025. While sales and other operating revenue remained relatively stable, fluctuating between 323,905 million US$ and 339,247 million US$, NOPBT continued to decrease. This pattern indicates significant margin compression, as the ability to convert revenue into operating profit diminished over the final three years of the period.
- Comparative Performance Baseline
- By the end of 2025, both the operating profit margin and the NOPBT had fallen below their 2021 levels. The operating profit margin decreased from 14.69% to 12.09%, and NOPBT dropped from 40,640 million US$ to 39,156 million US$, suggesting a deterioration in overall operating efficiency relative to the start of the analyzed period.
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Turnover of Capital (TO)
ExxonMobil Holdings Corp., TO calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenue | 323,905) | 339,247) | 334,697) | 398,675) | 276,692) | |
| Invested capital1 | 371,757) | 378,995) | 307,196) | 297,049) | 272,673) | |
| Efficiency Ratio | ||||||
| TO2 | 0.87 | 0.90 | 1.09 | 1.34 | 1.01 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Chevron Corp. | 0.67 | 0.93 | 0.93 | 1.11 | 0.80 | |
| ConocoPhillips | 0.56 | 0.51 | 0.69 | 1.04 | 0.60 | |
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).
1 Invested capital. See details »
2 2025 Calculation
TO = Sales and other operating revenue ÷ Invested capital
= 323,905 ÷ 371,757 = 0.87
3 Click competitor name to see calculations.
The analysis of capital efficiency reveals a period of significant volatility followed by a gradual decline in the efficiency with which invested capital is utilized to generate revenue.
- Revenue Performance
- Operating revenue experienced a sharp increase in 2022, peaking at 398,675 million US dollars, before correcting and stabilizing between 323,905 million and 339,247 million US dollars from 2023 through 2025.
- Invested Capital Growth
- A consistent upward trend in invested capital is observed, rising from 272,673 million US dollars in 2021 to a peak of 378,995 million US dollars in 2024, indicating a substantial expansion of the company's asset base over the period.
- Turnover of Capital (TO)
- The capital turnover ratio reached a peak of 1.34 in 2022, correlating with the spike in operating revenue. However, a subsequent downward trajectory is evident, with the ratio falling to 0.87 by 2025. This decline suggests that the increase in invested capital has outpaced revenue growth, leading to a reduction in the revenue generated per unit of invested capital.
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Effective Cash Tax Rate (CTR)
ExxonMobil Holdings Corp., CTR calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 28,426) | 31,476) | 37,855) | 62,749) | 32,736) | |
| Add: Cash operating taxes2 | 10,730) | 14,916) | 14,713) | 16,789) | 7,904) | |
| Net operating profit before taxes (NOPBT) | 39,156) | 46,391) | 52,567) | 79,538) | 40,640) | |
| Tax Rate | ||||||
| CTR3 | 27.40% | 32.15% | 27.99% | 21.11% | 19.45% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Chevron Corp. | 33.53% | 30.17% | 29.08% | 22.40% | 21.79% | |
| ConocoPhillips | 32.16% | 29.38% | 25.68% | 26.41% | 25.25% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 10,730 ÷ 39,156 = 27.40%
4 Click competitor name to see calculations.
The financial trajectory between 2021 and 2025 is characterized by a significant surge in profitability in 2022, followed by a steady contraction in net operating profit before taxes (NOPBT). While absolute cash tax expenditures peaked in alignment with profits in 2022, the effective cash tax rate (CTR) demonstrated an inverse relationship to profitability between 2022 and 2024, increasing as profits declined.
- Net Operating Profit Before Taxes (NOPBT) Trends
- A substantial increase in NOPBT is observed from 2021 to 2022, rising from US$ 40,640 million to a peak of US$ 79,538 million. This was followed by a consistent downward trend over the subsequent three years, with the 2025 value of US$ 39,156 million falling slightly below the 2021 baseline.
- Cash Operating Tax Expenditures
- Cash taxes mirrored the profitability spike in 2022, reaching a high of US$ 16,789 million. From 2023 to 2024, cash tax payments remained relatively inelastic, staying between US$ 14,713 million and US$ 14,916 million despite the contraction in NOPBT. A significant reduction in cash tax payments occurred in 2025, falling to US$ 10,730 million.
- Effective Cash Tax Rate (CTR) Dynamics
- The CTR exhibits a persistent upward trajectory from 2021 (19.45%) to a peak in 2024 (32.15%). The rise in the CTR during a period of declining NOPBT between 2022 and 2024 indicates that the tax burden grew relative to operating earnings, creating a compression effect on after-tax results. A reversal of this trend is observed in 2025, where the rate decreased to 27.40%.
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