Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
ExxonMobil Holdings Corp., profitability ratios
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 examination of the profitability metrics reveals a distinctive peak in financial performance during the 2022 fiscal year, followed by a sustained downward trajectory across all indicators through 2025. This pattern suggests a period of exceptional profitability in 2022 that was not maintained in subsequent years, with most ratios trending toward or below 2021 levels by the end of the period.
- Profit Margin Trends
- The operating profit margin experienced a significant increase from 11.91% in 2021 to a peak of 19.82% in 2022. Following this peak, a steady decline is observed, with the margin receding to 16.24% in 2023, 14.74% in 2024, and finally 13.05% in 2025. The net profit margin mirrors this movement, rising from 8.33% in 2021 to 13.98% in 2022 before contracting sequentially to 10.76%, 9.93%, and 8.91% over the subsequent three years.
- Return on Capital and Assets
- Return on equity (ROE) exhibited the most substantial volatility, surging from 13.67% in 2021 to 28.58% in 2022. This surge was followed by a consistent contraction, falling to 17.58% in 2023, 12.77% in 2024, and reaching a period low of 11.12% in 2025. Similarly, return on assets (ROA) peaked at 15.10% in 2022, compared to 6.80% in 2021, before entering a downward trend that resulted in a value of 6.42% by the end of 2025.
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Operating Profit Margin
ExxonMobil Holdings Corp., operating profit margin 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) | ||||||
| Operating income | 42,271) | 49,990) | 54,346) | 79,033) | 32,967) | |
| Sales and other operating revenue | 323,905) | 339,247) | 334,697) | 398,675) | 276,692) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 13.05% | 14.74% | 16.24% | 19.82% | 11.91% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Chevron Corp. | 11.53% | 14.63% | 15.37% | 21.42% | 14.81% | |
| ConocoPhillips | 22.97% | 26.64% | 30.57% | 36.80% | 29.84% | |
| Operating Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | 13.59% | 15.81% | 17.32% | 22.22% | 14.57% | |
| Operating Profit Margin, Industry | ||||||
| Energy | 13.51% | 15.82% | 17.27% | 21.94% | 14.46% | |
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 2025 Calculation
Operating profit margin = 100 × Operating income ÷ Sales and other operating revenue
= 100 × 42,271 ÷ 323,905 = 13.05%
2 Click competitor name to see calculations.
The financial performance from 2021 to 2025 is characterized by a significant surge in profitability in 2022, followed by a period of gradual contraction in operating margins.
- Revenue and Operating Income Dynamics
- A substantial increase in both sales and operating income occurred between 2021 and 2022, with operating income rising from US$ 32,967 million to US$ 79,033 million. Following this peak, operating income experienced a consistent downward trend, declining to US$ 42,271 million by December 31, 2025, despite sales figures remaining relatively stable between 2023 and 2025, fluctuating within the range of US$ 323 billion to US$ 339 billion.
- Operating Profit Margin Fluctuations
- The operating profit margin peaked at 19.82% in 2022, representing the highest level of operational efficiency within the analyzed period. This peak was followed by a sequential decline over the subsequent three years, falling to 16.24% in 2023, 14.74% in 2024, and concluding at 13.05% in 2025.
- Profitability Trend Analysis
- While the operating profit margin shows a clear downward trajectory following the 2022 high, the 2025 margin of 13.05% remains above the 11.91% recorded in 2021. This indicates that although the exceptional profitability seen in 2022 has not been sustained, the company maintained a margin slightly higher than its 2021 baseline.
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Net Profit Margin
ExxonMobil Holdings Corp., net profit margin 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 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Chevron Corp. | 6.67% | 9.13% | 10.85% | 15.05% | 10.04% | |
| ConocoPhillips | 13.55% | 16.89% | 19.52% | 23.80% | 17.63% | |
| Net Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | 8.66% | 10.31% | 11.63% | 15.41% | 9.78% | |
| Net Profit Margin, Industry | ||||||
| Energy | 8.71% | 10.43% | 11.68% | 15.29% | 9.70% | |
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 2025 Calculation
Net profit margin = 100 × Net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 28,844 ÷ 323,905 = 8.91%
2 Click competitor name to see calculations.
The financial performance from 2021 through 2025 is characterized by a significant volatility peak in 2022, followed by a sustained period of margin compression and declining net income.
- Net Profit Margin Trends
- A sharp increase in profitability is observed between 2021 and 2022, with the net profit margin rising from 8.33% to a peak of 13.98%. Following this peak, a consistent downward trajectory is evident, as the margin declined to 10.76% in 2023, 9.93% in 2024, and 8.91% by the end of 2025.
- Revenue and Income Correlation
- The peak in profitability in 2022 coincided with the highest recorded sales and other operating revenue of 398,675 million and the highest net income of 55,740 million. In the subsequent years, revenue experienced a general decline, though a marginal increase occurred in 2024. Despite this slight revenue growth in 2024, net income continued to fall, indicating a decrease in operational efficiency and a narrowing of profit margins.
- Profitability Normalization
- The net profit margin at the close of 2025 stands at 8.91%, which represents a near-return to the 2021 baseline of 8.33%. The transition from a high of 13.98% in 2022 to 8.91% in 2025 reflects a significant contraction in the company's ability to convert sales into actual profit over the four-year period following the initial growth phase.
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Return on Equity (ROE)
ExxonMobil Holdings Corp., ROE 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 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Chevron Corp. | 6.60% | 11.59% | 13.28% | 22.27% | 11.24% | |
| ConocoPhillips | 12.39% | 14.27% | 22.23% | 38.91% | 17.79% | |
| ROE, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.63% | 12.60% | 16.46% | 27.31% | 13.24% | |
| ROE, Industry | ||||||
| Energy | 9.79% | 12.96% | 16.67% | 26.98% | 13.21% | |
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 2025 Calculation
ROE = 100 × Net income attributable to ExxonMobil ÷ Total ExxonMobil share of equity
= 100 × 28,844 ÷ 259,386 = 11.12%
2 Click competitor name to see calculations.
The financial performance between 2021 and 2025 is characterized by a significant peak in profitability in 2022 followed by a multi-year period of contraction. Although the equity base expanded substantially over the period, the diminishing net income levels resulted in a consistent decline in the return generated on shareholder investments from 2023 through 2025.
- Net Income Trends
- Net income attributable to the company experienced a sharp increase from US$ 23,040 million in 2021 to a peak of US$ 55,740 million in 2022. Following this peak, a downward trend was observed, with annual net income falling to US$ 36,010 million in 2023, US$ 33,680 million in 2024, and further declining to US$ 28,844 million by 2025.
- Equity Base Expansion
- The total share of equity demonstrated consistent growth from 2021 to 2024, rising from US$ 168,577 million to US$ 263,705 million. A minor contraction occurred in 2025, where equity decreased slightly to US$ 259,386 million. This overall increase in equity indicates a larger capital base over the five-year duration.
- Return on Equity (ROE) Interpretation
- ROE mirrored the trajectory of net income, rising from 13.67% in 2021 to a maximum of 28.58% in 2022. Subsequently, the ratio declined steadily to 17.58% in 2023, 12.77% in 2024, and 11.12% in 2025. The compression of ROE after 2022 was driven by the dual impact of falling net income and an increasing equity denominator, which effectively lowered the efficiency of capital utilization.
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Return on Assets (ROA)
ExxonMobil Holdings Corp., ROA 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 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Chevron Corp. | 3.80% | 6.87% | 8.17% | 13.76% | 6.52% | |
| ConocoPhillips | 6.55% | 7.53% | 11.42% | 19.91% | 8.91% | |
| ROA, Sector | ||||||
| Oil, Gas & Consumable Fuels | 5.49% | 7.27% | 9.31% | 15.25% | 6.99% | |
| ROA, Industry | ||||||
| Energy | 5.53% | 7.37% | 9.28% | 14.84% | 6.84% | |
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 2025 Calculation
ROA = 100 × Net income attributable to ExxonMobil ÷ Total assets
= 100 × 28,844 ÷ 448,980 = 6.42%
2 Click competitor name to see calculations.
The analysis of profitability ratios from 2021 to 2025 reveals a period of significant volatility, characterized by a prominent peak in performance during 2022 followed by a steady decline in asset efficiency.
- Net Income Performance
- Net income attributable to the entity experienced a substantial surge in 2022, rising to 55,740 million US dollars. Following this peak, a consistent downward trajectory was observed, with earnings falling to 36,010 million US dollars in 2023 and continuing to decline to 28,844 million US dollars by the end of 2025.
- Asset Base Growth
- The total asset base demonstrated a general upward trend for most of the period, increasing from 338,923 million US dollars in 2021 to a peak of 453,475 million US dollars in 2024. A marginal contraction in assets occurred in 2025, with the total settling at 448,980 million US dollars.
- Return on Assets (ROA) Trends
- The ROA peaked at 15.10% in 2022, driven primarily by the spike in net income. From 2023 onward, a clear downward trend emerged, with the ratio falling to 9.57% in 2023, 7.43% in 2024, and 6.42% in 2025. This contraction reflects a divergence where the expansion of the total asset base was not supported by proportional growth in net earnings, resulting in a diminished capacity to generate profit from the company's assets.
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