Exxon Mobil Corp (XOM)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.72 | 1.72 | 1.72 | 1.84 | 1.84 | 1.86 | 1.82 | 1.86 | 1.89 | 1.99 | 2.07 | 2.10 | 2.01 | 2.10 | 2.13 | 2.13 | 2.12 | 2.02 | 2.01 | 1.95 |
Exxon Mobil Corp's solvency ratios, including the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, indicate a very low level of indebtedness and solid financial strength over the period from March 2020 to December 2024.
1. Debt-to-assets ratio remained at 0.00 throughout the entire period, indicating that the company's total debt was negligible relative to its total assets. This suggests a low level of financial risk associated with the company's capital structure.
2. Debt-to-capital ratio also stayed at 0.00 consistently, implying that the company primarily funded its operations using equity capital rather than debt. This further demonstrates a conservative financial approach and a strong solvency position.
3. Debt-to-equity ratio maintained a constant level of 0.00, reflecting that there was no significant debt compared to equity in the capital structure. This ratio reinforces the notion that Exxon Mobil Corp relied more on equity financing, which is typically less risky than debt financing.
4. The financial leverage ratio decreased steadily from 1.95 in March 2020 to 1.72 in December 2024. This trend indicates that the company gradually reduced its reliance on debt to finance its operations, improving its financial flexibility and reducing the risk of financial distress.
Overall, based on the solvency ratios analyzed, Exxon Mobil Corp appeared to have a robust financial position with a low level of debt and a conservative capital structure strategy, which may enhance its ability to weather economic uncertainties and invest in growth opportunities in the future.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 48.68 | 50.71 | 53.54 | 52.67 | 61.59 | 77.19 | 87.40 | 110.26 | 96.13 | 85.85 | 66.40 | 41.41 | 33.39 | -5.66 | -14.11 | -19.95 | -23.24 | 5.19 | 10.38 | 18.03 |
Exxon Mobil Corp's interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company can easily meet its interest obligations, while a lower ratio may signal potential financial distress.
Based on the provided data, Exxon Mobil's interest coverage ratio fluctuated over the reported periods:
- The ratio was relatively strong in the first half of 2020, with values above 5, indicating a comfortable ability to cover interest expenses.
- However, there was a significant decline in the ratio in the second half of 2020, with negative values recorded in Q4 2020 and Q1 2021. This suggests that the company's earnings were insufficient to cover its interest payments during this period.
- Exxon Mobil's interest coverage ratio improved significantly from Q4 2021 onwards, reaching peak levels in Q1 2023 and remaining relatively stable thereafter.
- The ratio consistently exceeded 50 from Q1 2023 onwards, indicating a substantial improvement in the company's ability to cover interest expenses comfortably.
Overall, Exxon Mobil's interest coverage ratio showed variability in the past, with periods of both strength and weakness. The recent trend of significantly higher ratios reflects an enhanced capacity to service its debt obligations effectively.