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FINANCIAL STATEMENT ANALYSIS --- FINANCIAL STATEMENT ANALYSIS SECTION 1: EXECUTIVE SUMMARY I Checked the Standard & Poor 500 companies for this years, Chevron has most recent 2 years positive cash inflow, and also this company not been involved into major merger in recent 3 years. Chevron is listed in NYSE, energy sector. Chevron is a very good company to study. Also Exxon Mobil is an energy giant around worldwide, and Exxon Mobil is a Standard & Poor Company. Chevron and Exxon Mobil has so many common points, and actually they are a pair of competitors. Carefully analysis this two companies’ financial statement and compare with them can tell us a lot of information about energy markets. My analysis started with ratio analysis. I calculated 15 kind of ratios concern about liquidity, profitability as well as solvency of Chevron and Exxon Mobil from year 2008 to 2012. And then I chose the most recent year’s data to compare. I compared those 15 ratios between Chevron and Exxon Mobil at year 2012, the liquidity, profitability and solvency of these two companies are easily to tell. Then I ran a vertical study. I prepared the percentage income statement of Chevron and Exxon Mobil in 2012. All amounts are divided by net sales. By doing so, all accounts in income statement are in percent basement, a good way to vertical analysis. I compared the percent profit margin, percent EBIT, percent operating cost and percent net income between these 2 companies. This method also shows the profitability and cost structure of Chevron and Exxon Mobil. Finally, I ran a horizontal study. I used the balance sheet of Chevron and Exxon Mobil from 2010 to 2012 to calculate the amount changed and percent change of each column. By doing so, I can see the growth and declining trend of assets scale, liabilities scale, stockholder equity scale and also some critical accounts

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