Exxon Mobil Analysis

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Exxon Mobil Analysis ExxonMobil, the largest publicly traded petroleum and petrochemical company in the world, began almost 125 years ago as a regional marketer of kerosene in the United States. The enterprise operates in most of the world’s countries under the brand names of Exxon, Esso, and Mobil (Our history, 2012). What follows is a brief analysis based on parts of ExxonMobil’s 2011 and 2012 annual reports. When looking at assets for ExxonMobil, the determination can be made that the majority of its assets are tangible rather than intangible. In 2011, of the $3.31B in total assets reported, $2.15B would be considered tangible: property, plant and equipment. However, the category of other assets contained only $9.09B which includes intangibles: copyrights, patents and trademarks (ExxonMobil Corporation, 2012). Likewise, in 2012, the company reported $3.34B in total assets. Of that, $2.27B was tangible and intangible assets were contained in the $7.66B other assets reported (ExxonMobil Corporation, 2013). The 2012 net income of $44.88B reported showed a 9.30% growth of $3.82B compared to the $41.06B in net income reported in 2011 (ExxonMobil Corporation, 2013). While the amount of growth is substantial when standing alone, it was modest when comparing the 2010 and 2011 reporting periods. That time frame saw a 34.80% growth which equaled $10.60B (ExxonMobil Corporation, 2012). When considering ExxonMobil’s cash flow, one finds that cash flow for 2012 was a negative $3.08B. The company’s cash and cash equivalents started the year with $12.66B and ended with $9.58B, a 24.83% drop during the year. This was quite different than the previous year. In 2011 cash and cash equivalents began with $7.82 B, but increased by an impressive $4.84B, or 61.9% during the year. Stock price for ExxonMobil (XOM) ended on April 26, 2013 at $88.00. Over a two year period, the

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