Exxon Mobil Corp (XOM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.84 | 1.89 | 2.01 | 2.12 | 1.89 |
Exxon Mobil Corp. has shown a consistent trend of improving solvency ratios over the past five years. The debt-to-assets ratio, which indicates the proportion of total assets financed by debt, has remained relatively stable around 0.11 to 0.20. This suggests that the company has effectively managed its debt levels in relation to its total assets.
Similarly, the debt-to-capital ratio, which reflects the percentage of capital structure financed by debt, has also remained steady between 0.17 and 0.30. This indicates that Exxon Mobil has maintained a balanced mix of debt and equity in its capital structure.
The debt-to-equity ratio, which measures the extent to which debt is used to finance operations compared to equity, has shown a decreasing trend from 0.43 in 2020 to 0.20 in 2019. This indicates that the company has reduced its reliance on debt financing and has strengthened its equity position over the years.
Finally, the financial leverage ratio, which indicates the company's ability to meet its financial obligations through its assets, has also improved from 2.12 in 2020 to 1.84 in 2019. This implies that Exxon Mobil has become more financially stable and less reliant on debt to support its operations.
Overall, based on the solvency ratios, Exxon Mobil Corp. appears to have a strong financial position and effective management of its debt levels, which bodes well for its long-term financial health.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 61.59 | 96.13 | 33.39 | -23.24 | 24.64 |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Based on the data provided for Exxon Mobil Corp., we observe the following trends in interest coverage over the past five years:
1. Dec 31, 2023: Interest coverage ratio is 64.01, showing a decline from the previous year but still at a healthy level. This indicates that the company's earnings are sufficient to cover its interest expenses.
2. Dec 31, 2022: Interest coverage ratio stands at 99.04, signaling a strong ability to cover interest payments, reflecting a favorable financial position.
3. Dec 31, 2021: Interest coverage ratio is 34.81, lower compared to the previous year but still above average, suggesting the company can comfortably meet its interest obligations.
4. Dec 31, 2020: Interest coverage ratio is -22.90, indicating that the company's earnings were not sufficient to cover its interest expenses during this period. This raises a red flag as it implies financial distress.
5. Dec 31, 2019: Interest coverage ratio is 26.65, showing an improvement from the previous year but still below the ideal threshold. The company's ability to cover interest payments has increased compared to the previous year.
In summary, Exxon Mobil Corp.'s interest coverage ratio has showcased fluctuations over the years. Although there were instances of strong coverage, such as in 2022, there were also periods, notably in 2020, where the company struggled to cover its interest expenses. It is essential for investors and stakeholders to monitor this ratio over time to assess the company's financial health and ability to manage its debt effectively.