Exxon Mobile started their business in 1859 in Titusville Pennsylvania, being in business for over 125 years it makes them one of the first big oil corporations in the US. The multi-billion dollar company currently operates in an international level around the world. The oil industry is a billion dollar industry which is highly competitive in the market, but Exxon has been able to stay highly active and competitive within the industry. Exxons financial statements do look promising comparing them to the Oil Industry, while Exxon Mobil Oil corporation is one of the leading companies in its Industry when we look at the company’s 2014 Financial statement we see they have dropped their numbers within the past few years. Their best year thus far was in 2011 with a total revenue of over 467 billion giving them a solid leading ratio within its industry. Now analyzing Exxon Mobil’s 2014 Financial statements and balance sheets, we are able to see where the company has lacked in financial management. For instance its solvency current ratio stands at a 0.95 while the leading numbers in the industries are between 2.3 to 1.2, the company is not in all bad terms because it is profitable but comparing it to its industry we see they fall on a lower level in the solvency ratio. Efficiency Ratios for Exxon are currently at 30.20 which puts Exxon in the median level ratio in the industry, upper levels range between 12.8 and 26.1 for 2014
Financial Research Report Marquita Jackson Dr. Glenn Stephens Financial Management – FIN 534 March 4, 2014 Abstract Imagine that you are a financial manager researching investments for your client that aligns with its investment goals. Use the Internet or the Strayer Library to research any U.S. publicly traded company that you may consider as an investment opportunity for your client. The assignment will cover the following topics: Rationale for choosing the company for which to invest Ratio Analysis…
Summary: The objective of this financial report on Exxon Mobil (XOM) is to compare the intrinsic value of the XOM stock (P0) and compare to the market price. The intrinsic value was calculated using Gordon’s model. The risk-free rate, rate of return on market portfolio and beta of the XOM stock was found using reputable financial sources that are sited throughout this report. The investors’ required rate for the XOM stock was found by applying the CAPM method. Exxon Mobil was selected for this report…
Exxon Mobil • Multinacional americana • ExxonMobil is the largest non-government owned company in the energy industry and produces about 3 percent of the world's oil and about 2 percent of the world's energy • Resultado de la fusión de Exxon y Mobil en 1998, en un acuerdo de US$ 73.7 billones • Ambas empresas son descendentes de histórica Standard Oil, fundada en 1870 por John D. Rockefeller • Marcas: o Exxon o Mobil o Esso • Casa Matriz: Irving…
stock price of target may go up during acquisition Operating Synergy – Economies of scale Greater pricing power from reduced competition and higher market share Combination of different functional Strength Higher growth in new or existing markets Financial Synergy A combination of firms with excess cash or cash slack Debt capacity can increase reducing cost of debt. Higher leverage effects Tax benefits – Advantage from tax laws V(AB) > V(A) +V(B) V(AB) Value of a firm created by combining…
Mergers and Acquisition: Exxon Mobil Merger Introduction Industry mergers or business combinations are a phenomenon that has been commonplace for quite some time now. They basically involve two or more organizations coming together to form a large corporate under which they operate. The new organization which may have a combination of the names of the merging components or a totally new name operates as…
positions (or avoided) in the portfolio (Frequently Asked Questions). The top 10 holdings of SPDR are Apple Inc., Exxon Mobil Corporation, Microsoft Corporation, Johnson & Johnson, Berkshire Hathaway Inc. Class B, Wells Fargo & Company, Procter & Gamble Company, General Electric Company, JPMorgan Chase & Co., and Pfizer Inc.. Mainly 5 sectors are Information Technology (19.55%), Financials (16.00%), Health Care (14.81%), Consumer Discretionary (11.86%), and Industrials (10.35%). SPDR ETFs allow investors…
Capital Gains/Losses (Appreciation) Investment • Commitment of current funds in anticipation of receiving a larger future flow of funds • To use money for the purpose of obtaining an income or profit Risk-Reward Financial Assets • Financial claim on an asset – usually documented legally o Stocks, bonds, options – debt • Direct Equity Claims o Represent ownership interests and common stock, also warrants and options…
and what are the risks involves as well as the benefits. Included in this report are two real life recent examples of outsourcing titled as case study 1 and case study 2. We expect this report to be of significant interest for the non-financial and financial readers and other interested public i.e. shareholders or stakeholders as well as investing and analyst community from overseas who have interest in how the work is done in global corporations and more specifically in profit maximizing schemes…
Financial Significance – Some pension plans are larger than the corporation. The full pension liability is not recognized on the balance sheet. Career Significance – You should understand pension benefits before accepting a job. WHY ARE PENSIONS IMPORTANT? Pension Analysis Issues Pension amounts are earned, but not paid until later. When should the expense be shown on the income statement? How should amounts owed to future retirees be shown in the financial statements…