Fin 200 Final

Krystal Simmons

Final Project: Evaluating an Annual report

University of Phoenix

March 22, 2009

Reviewing Exxon Mobil’s annual reports it shows that the company is doing great financially. Comparing Exxon Mobil to others in the same industry is tough. Taking a look at other industries Exxon is leader in 7 of 12 chemical business segments they operate and 2nd in 4 others. Exxon Mobil has their mind set to open more plants nationwide in the future and they strongly agree that making a change within their company to help our environment is very important.

Eight ratios will be commuted such as current ratio, quick ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI, ROE, and price to earnings ratio.

For 2006 and 2007 Exxon Mobil’s current ratio is:

Current Ratio = Total Current Assets / Total Current Liabilities

Current Ratio for 2007 = 85,963,000 / 58,312,000

Current Ratio for 2007 = 1.47

Current Ratio for 2006 = 75,777,000 / 48,817,000

Current Ratio for 2006 = 1.55

Taking a look at Phillips annual report and comparing it to Exxon Mobil it looks like Exxon Mobil doubled the revenue in 2007. Exxon Mobil is the leader around the world for oil. Looking at Phillips annual report total assets for Exxon was barely higher than Phillips.

For 2006 and 2007 Exxon Mobil’s quick ratio is:

Quick Ratio = (Current Assets – Inventories) / Current Liabilities

Quick Ratio for 2007 = (85,963,000 - 15,013,000) / 58,312,000

Quick Ratio for 2007 = 70,950,000 / 58,312,000

Quick Ratio for 2007 = 1.21

Quick Ratio for 2006 = (75,777,000 - 13,987,000) / 48,817,000

Quick Ratio for 2006 = 1.26

For 2007 on the Phillips annual report their current liabilities were 26,882,000 which were lower than Exxon Mobil at 58,312,000. You can compare the equations above with the numbers from Phillips but it looks like Exxon overall had better numbers in 2007.

For 2006 and 2007 Exxon Mobil’s Inventory Turnover Ratio...