Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Financial Statement Analysis
Financial Statement Analysis
Financial Statement Analysis
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Financial Statement Analysis
ExxonMobil is an American international oil and gas corporation. The company’s financial perspective focuses on improve the values of the company and growth in sales revenue.
The financial statements for Exxon in 2014 are a slightly declined than it made in 2013. Exxon experienced decrease in operating income from 2013 to 2014 of $74 billion to $61 billion. Operating income indicates how much a company earned from business activities, the company has less profitable. Their operating margin Exxon made in 2014 is also decreased. It is 4% less than they made in 2013. Exxon must figure out their operating performance, include Cost of Goods Sold or fixed costs and increase revenue performance. The sales revenues that companies made in 2014 are $365
…show more content…
The global oversupply of crude affects Exxon. In the fourth quarters of last year, Brent and other crudes price were down sharply more than a third to an average of cost of $80 a barrel. This affected fourth quarter earnings. Exxon’s fourth quarter earnings fell 16%. Fortunately, most experts doubt the oil price will recover until half of the year although it recently increased more than 10 percent. Although the company experienced decline in revenue, it face to positive. Exxon faces to positive from its drilling, and has in a global-wide expansion and development plan.
According to ExxonMobil, for future, the company will invest on exploration for oil and gas at around $34 billion annually. However, Exxon took criticism that investing on exploration for oil and gas affects to destroy climate by recklessly extracting and burning fossil fuel reserves. The company tried to rebuild its business image. Exxon’s recent investments have been in natural gas, which pollutes less CO2 than oil when it burned. The company spends about $6 billion a year for reducing pollute. Investing on exploration for oil and gas will generate revenue in
…show more content…
The financial perspective for Exxon, it decreased revenue due to dropped price of barrel, oil. However, it has future development plan, and the outlook for exploration plain in Russia is favorable. The company applied new technologies that efficient drilling and extracting technologies to provide cheap and reliable oil and natural gas. Because of indiscriminate exploration, the company took a claim about pollution that occurs while drilling and processing to provide oil and gas. Exxon is also invested for human resources that creating environment that its employees have the opportunity to learn based on
Exxon Mobil is a reactive company, in the sense that it only acts when things go wrong, the company had to embrace CSR in light of invents that threatened to tarnish the image of the company. However the company has tried to be proactive in some areas with minimal success, this includes: wind power and solar panel constructions, for instance, are real not just stories. 3% reduction of gas emissions and 23% of sulfur are also real and provable results.
Prior to the year of 1999, Exxon and Mobil were the two largest American oil companies, which were direct descendants of the John D. Rockefeller’s broken up Standard Oil Company. In 1998 Exxon and Mobil signed an eighty billion dollar merger agreement in hope to form Exxon Mobil Corporation, the largest company ever created. Such a merger seems astonishing, not only because it reunited parts of Rockefeller’s Standard Oil Company, but also because it would be extremely difficult for the Federal Trade Commission (FTC) to approve this merger due to its size and importance in the oil market. In fact, it took the FTC an entire year after the merger was proposed to make a decision due to its rigorous analysis in the product and its geographic market, the concentration of the oil market, the potential anticompetitive effects of the merger, the effects towards their growth and labor force, and lastly, the likelihood of entry and the efficiencies that may affect anticompetitive concerns. Although all of these notions are played a role in the analysis of the merger, it is important to remember that the merger’s result efficiencies did outweigh the the anticompetitive risks that were involved, especially since the oil market was headed towards decreasing prices to expand production.
Pratt, Joseph A. “Exxon and the Control of Oil.” Journal of American History. 99.1 (2012): 145-154. Academic search elite. Web. 26. Jan. 2014.
The Shell Oil Company involves a group of energy and petrochemicals companies that operate globally. Shell employs over 92,000 employees and operates in more than 70 countries and territories. Shell is considered a prominent gasoline provider, offering products that range from energy fuels, lubricants for businesses, and petrochemicals for detergents, packaging, carpets, and computers. The Shell corporation is also making strides to embrace renewable energies “by creating hybrid energies with traditional fuels such as natural gas” (Shell Global, n.d.). Shell is building hybrid power plants that combine renewable energies, including those produced by sun and wind, with traditional fuels. By investing in emission-free energies, Shell seeks to improve its operations and competitive posture as renewable technologies advance.
A few years ago, the price of gasoline peaked at a price of about four dollars a gallon, indicating a similarly high price for crude oil. This high price for crude oil incentivized many companies to invest in hydraulic fracturing in the state of Oklahoma. A problem arises, however, as many companies would spend more drilling than they profited from the oil drilled. According to Richard Manning, “A couple of generations ago we spent a lot less energy drilling, pumping, and distributing than we do now” (431). With this vast investment in the oil industry in Oklahoma, eventually the price of oil dropped and these companies went bankrupt. With the decline in oil prices, so too did the Oklahoman economy follow as Asjylyn Loder remarks, “In the second quarter of last year [2015], Oklahoma’s economy shrank 2.4 percent” (12). This collapse in the economy has been seen before by Oklahoma and will not likely recover for likely many
In the two Exxon Mobile commercials presented, a number of employees of the company are trying to disprove the common overgeneralization that gas companies aren’t concerned with the condition of our environment. Many people assume that gas companies, such as Exxon Mobile, are simply concerned with the creation of gasoline in an effort to increase their profits; however, these commercials were designed to contradict that general assumption. In the first commercial, the creators are trying to demonstrate the diversity of their staff and the various tasks that they are assigned with that actually work to improve the environment. Not only are they trying to produce cleaner burning fuels and encourage energy efficiency, they are working on matters
A company known as Exxon Mobil recently agreed to handle their violations of the clean-air law. They agreed to pay a penalty that was a little over two million and they also paid three million on pollution. Some federal officials agree that this will prevent huge amounts of pollution in the future. Others think that this can cause the flaring up of gas, which seems to be a major pollution problem near oil refineries and chemical plants.
Exxon Oil Company is currently under scrutiny for possibly failing to disclose information to outside investors and the public about the effects of Exxon’s oil production on the climate and more importantly how those negative effects would affect the company’s business. The company
In order to comprehend the different aspects, trends, and the recommendations for Exxon Mobil Corporation’s annual report. The scope of this paper will examine and analyze the financial ratios by obtaining the three previous years of financial statements beginning with the most current year, 2013 and subsequently evaluating for the year end of 2012, 2011 and 2010.
Oil reserves, coal mines and natural gas reserves are being depleted and will fully be emptied in the future. Shell is also not environmentally sustainable as oil spills and CO2 emission are still a major problem in which Shell is trying to solve but due to the fact that Shell is an oil company, even though Shell actively tries to maintain the sustainability of the environment, they will not be considered as a environmentally sustainable
The energy sector should not invest in exploration or development due to the cash needed to make the venture successful. Investing in this part of the sector would mean a negative cash
To get the energy from the depth of the oil wells a highly developed modern technology is strongly required. Therefore the oil and gas companies have been pioneers in developing and utilising new technologies and in implementing management systems to mitigate and minimize the environmental impact of production operations to local communities and terrains and maximise the value from an every singe oil well.
Petroleum industry is a main energy industry. So, petroleum is vital to many industries, and is of importance to the maintenance of industrial civilization in its current configuration, and thus is a critical concern for many nations. Oil accounts for a large percentage of the world’s energy consumption. Oil and gas drive world economies, their prices can alter the economic prospects of entire countries and a single value fluctuation can have a wide-ranging impact on stock markets worldwide. The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum (oil) is also the raw material for many chemical
The company’s gross margin was down 1.1 percentage points both for the fourth quarter as well as the year. Net income for the quarter was down from $ 3.7 billion to $ 3.6 billion and down from $ 11.7 billion to $ 11.4 billion for the year. The company spent 4 % more on R&D and marketing
Shell is a company who deals in energy & petroleum products since many years ago and they are operating in all over the world. They have a strategy to serve all over the world with their energy and petroleum products their target is to achieve high profit and maximum profits from all over the world with the help of their international programs to achieve sustainable growth and to facilitates the shareholders with maximum profits and competitive advantage as well.