Exxon Mobil Corp (XOM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.72 | 1.84 | 1.89 | 2.01 | 2.12 |
Exxon Mobil Corp has displayed consistently strong solvency ratios over the years, as indicated by the following key metrics:
1. Debt-to-assets ratio: The company has maintained a debt-to-assets ratio of 0.00 across the years from 2020 to 2024. This signifies that Exxon Mobil has not relied heavily on debt to finance its operations and investments, indicating a strong financial position in terms of asset coverage.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has consistently been 0.00 for Exxon Mobil over the same period. This suggests that the company's capital structure is predominantly composed of equity rather than debt, reflecting a low level of financial risk and a conservative approach to financing.
3. Debt-to-equity ratio: The debt-to-equity ratio has also remained at 0.00 from 2020 to 2024. This ratio indicates the extent to which the company's assets are financed through debt relative to equity. A lower debt-to-equity ratio points towards lower financial leverage and a stronger equity position in the company's capital structure.
4. Financial leverage ratio: The financial leverage ratio for Exxon Mobil has shown a declining trend over the years, decreasing from 2.12 in 2020 to 1.72 in 2024. A decreasing financial leverage ratio indicates that the company is relying less on debt to support its operations, which is a positive sign of financial stability and improved solvency.
Overall, based on the solvency ratios analyzed, Exxon Mobil Corp appears to have a robust financial position with minimal reliance on debt financing, strong asset coverage, and decreasing financial leverage, indicating a healthy solvency position and good financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 48.68 | 61.59 | 96.13 | 33.39 | -23.24 |
The interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. For Exxon Mobil Corp, the interest coverage ratio has shown significant fluctuations over the years based on the provided data.
As of December 31, 2020, Exxon Mobil Corp had an interest coverage ratio of -23.24, indicating that the company's earnings before interest and taxes were insufficient to cover its interest expenses, signifying a potential financial risk.
By December 31, 2021, the interest coverage ratio improved dramatically to 33.39, suggesting that the company's ability to cover its interest payments had significantly strengthened compared to the previous year.
Subsequently, as of December 31, 2022, Exxon Mobil Corp's interest coverage ratio rose even further to 96.13, demonstrating a robust capacity to service its interest obligations comfortably.
However, by December 31, 2023, the interest coverage ratio decreased to 61.59, indicating a slight dip in the company's ability to cover its interest expenses compared to the previous year.
Finally, as of December 31, 2024, Exxon Mobil Corp's interest coverage ratio stood at 48.68, showing a further decline from the previous year, although still at a level that generally indicates the company's earnings are adequate to cover its interest payments.
In conclusion, Exxon Mobil Corp's interest coverage ratio has shown varying trends over the years, with significant improvements in some periods and slight declines in others. It is essential for investors and stakeholders to monitor these fluctuations to assess the company's financial health and its ability to meet its debt obligations.