Exxon Mobil Corp (XOM)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 204,802,000 | 195,049,000 | 168,577,000 | 157,150,000 | 191,650,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $204,802,000K
= 0.00
The debt-to-equity ratio of Exxon Mobil Corp. has shown a declining trend over the past five years, indicating a decreasing reliance on debt financing compared to equity.
At the end of 2023, the ratio stood at 0.20, indicating that for every $1 of equity, the company had $0.20 of debt. This indicates a conservative capital structure with a lower level of debt relative to equity, which can be viewed positively by potential investors and creditors as it signifies lower financial risk.
Compared to the ratios of the previous years, the company has successfully reduced its debt-to-equity ratio, which suggests effective management of debt levels and a stronger financial position. The decrease from 0.43 in 2020 to 0.20 in 2023 demonstrates a significant improvement in financial leverage and indicates a shift towards a more equity-funded capital structure.
Overall, Exxon Mobil Corp.'s decreasing debt-to-equity ratio over the years reflects a prudent approach to managing its capital structure and financial risk, which may enhance investor confidence and financial stability in the long term.
Peer comparison
Dec 31, 2023