The company has improved its performance over the years, profits have increased as a result of increase in operations by the company, increasing oil prices has also resulted to an increase in the level of revenue realized by the company, the company also enjoys comparative advantage in that it adopts technologies that aid in reducing the cost of production, it has also in the recent past improved its distribution networks that has helped reduce the cost of production.
The return on equity ratio is currently at 36.
19% which is very attractive to investors, the company therefore enjoys the advantage of acquiring funds for expanding its operations either through debts or equity, this is because its returns on equity is high and also its debt ratio allows it to fiance through debts. The following chart summarizes the profit levels earned by the company over the last three years:
From the above chart it is evident that the gross profits have increased over the years, however there has been slight increase in the net profits, therfore it is evident that despite the increase in the profits of the compnay there has also been relative increase in the expenses and therefoer the company should icnrease its efficiency to reduce its expensses.
References: Exxon Mobil (2008) financial reports, retrieved on 9th September, available at http://72. 14. 205.104/search? q=cache:HDDrZPPI9b0J:www. exxonmobil. com/Corporate/Files/news_release_earnings2q08. pdf+exxon+mobil+fiancial+report+2008&hl=en&ct=clnk&cd=1&gl=ke Financial times (2008) Exxon Mobil financial ratios, retrieved on 9th September, available at http://markets.
ft. com/ft/tearsheets/financialsSummary. asp? s=XOM%3ANYQ Yahoo finance (2008) Exxon Mobil prices and financial ratios, retrieved on 9th September, available at http://finance. yahoo. com/q/ks? s=XOM
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