Exxon Mobil Corp (XOM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 48,486,000 | 52,288,000 | 76,714,000 | 31,623,000 | -26,914,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 263,705,000 | 204,802,000 | 195,049,000 | 168,577,000 | 157,150,000 |
| Return on total capital | 18.39% | 25.53% | 39.33% | 18.76% | -17.13% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $48,486,000K ÷ ($—K + $263,705,000K)
= 18.39%
Exxon Mobil Corp's return on total capital has shown significant fluctuations over the years based on the provided data. The company's return on total capital was -17.13% as of December 31, 2020, indicating a negative profitability situation. However, there was a remarkable improvement in the following years, with the return on total capital increasing to 18.76% by December 31, 2021, and further rising to 39.33% by December 31, 2022, reflecting a substantial recovery in profitability.
In the subsequent years, Exxon Mobil Corp's return on total capital experienced some volatility. By December 31, 2023, the return on total capital declined to 25.53%, although still indicating good profitability levels. Finally, by December 31, 2024, the return on total capital decreased further to 18.39%, suggesting a slight decrease in profitability compared to the previous year.
Overall, Exxon Mobil Corp's return on total capital has shown a mixed performance trend during the period under review, with both positive and negative fluctuations. It is essential for the company to continue monitoring and managing its capital effectively to sustain and improve its profitability levels over time.
Peer comparison
Dec 31, 2024