COMPANY: EXXON MOBILE

To execute the tasks below consult the company's annual report over the 3-year period 2018, 2019 and 2020. In addition to the requirements for each question, ensure to provide formulas, assumptions and models as appropriate. Analysis or conclusions which are not based on the applicable theory will consequently limit your marks.

Task 1. Ratio analysis Analyse the company's consolidated financial statements using:

A. 3 Profitability ratios

B. 3 Efficiency ratios

C. 2 Liquidity ratios

D. 2 Financial gearing ratios

Reflect on the development of the ratio outcomes over the 3-year period and provide your conclusions and recommendations to the Board.

Task 2. Sensitivity analysis Treat the figures in the 2018-2020 Income Statement and Balance Sheet of the company of your choice as to if it were a prognosis. You are asked to execute a separate sensitivity analysis on the original figures as presented in the company's annual report with each of the following 4 items, using the percent of sales method:

A. Sales in each of the 3 years are 10% higher than currently "forecasted"

B. Sales in each of the 3 years are 10% lower than currently "forecasted"

C. Operating costs in each of the 3 years are 7% higher than currently "forecasted"

D. Operating costs in each of the 3 years are 7% lower than currently "forecasted"

Show the effects that each of the situation's A, B, C, and D have on the total 3-year Income Statements and Balance Sheets, including the effect on the required financing. Discuss the implications of each of these effects with the Board and draw conclusions with respect to the main risks in the business over this "prognosis" period.

Task 3. Working capital analysis In this task, you are also to assume that the figures in the 2018-2020 Income Statement and Balance Sheet of the company of your choice are a 3-year prognosis. Discuss the effects of each of the following 6 deviations from the original figures on the operating cash cycle in all 3 years:

A. Trade receivables of each of the 3 years are 10% higher than currently "forecasted"

B. Trade receivables of each of the 3 years are 20% lower than currently "forecasted"

C. Trade payables of each of the 3 years are 30% higher than currently "forecasted"

D. Trade payables of each of the 3 years are 15% lower than currently "forecasted"

E. Inventories of each of the 3 years are 40% higher than currently "forecasted"

F. Inventories of each of the 3 years are 20% lower than currently "forecasted"

Based on your analysis, provide recommendations to the Board on what the focus of their working capital management should be for each of the six (6) scenarios above.

Task 4.

Capital structure analysis

a) Discuss the capital structure of the company over the years 2018-2020, relating the term of the different sources of funds to the term of the different uses of funds. Ensure to provide the rationale for your conclusions for each of the ''term of sources and application (uses)'' of funds based on the appropriate concepts used in capital budgeting.

b) Explain the difference between Ordinary and Preference share. What affects the value of a share price?

In this Question , we need to use company 2018,2019,2020 EXXON MOBILEcompany annual reports. (No missing information, find information from online resource)

Here we need to use company annual report find online.