Evaluate Return on Equity for Exxon Mobil stock symbol XOM, for the last three years using the DuPont analysis A) Find ROE, Net Profit Margin, Asset Turnover, Financial Leverage for the last three years B) Find ROE, Net Profit Margin, Asset Turnover, Financial Leverage for the last year for major competitior C) Has the company's ROE changed over the last three years What was the main factor that influenced the change D) Compare the ratios of Exxon Mobil to the competitor If the management of company would like to improve their ROE, what should the management of the company do you can use morningstar com EXXON MOBIL CORP (XOM) CashFlowFlag INCOME STATEMENT Fiscal year ends in December USD in millions except per share data 2013 12 2014 12 2015 12 2016 12 2017 12 TTM Revenue 420836 394105 259488 218608 237162 261554 Cost of revenue 332452 313470 206316 179496 182238 200971 Gross profit 88384 80635 53172 39112 54924 60583 Costs and expenses Sales, General and administrative 12877 12598 11501 10799 10956 11488 Interest expense 9 286 311 453 601 648 Other operating expenses 17787 16121 19394 19891 24693 26095 Total costs and expenses 30673 29005 31206 31143 36250 38231 Income before income taxes 57711 51630 21966 7969 18674 22352 Provision for income taxes 24263 18015 5415 406 1174 1089 Net income from continuing operations 33448 33615 16551 8375 19848 21263 Other 868 1095 401 535 138 313 Net income 32580 32520 16150 7840 19710 20950 Net income available to common shareholders 32580 32520 16150 7840 19710 20950 Earnings per share Basic 7 37 7 6 3 85 1 88 4 63 4 91 Diluted 7 37 7 6 3 85 1 88 4 63 4 91 Weighted average shares outstanding Basic 4419 4282 4196 4177 4256 4269 Diluted 4419 4282 4196 4177 4256 4269 EBITDA 74902 69213 40325 30730 39168 42781 EXXON MOBIL CORP (XOM) CashFlowFlag BALANCE SHEET Fiscal year ends in December USD in millions except per share data 2013 12 2014 12 2015 12 2016 12 2017 12 Assets Current assets Cash Cash and cash equivalents 4644 4616 3705 3657 3177 Total cash 4644 4616 3705 3657 3177 Receivables 33152 28009 19875 21394 25597 Inventories 16135 16678 16245 15080 16992 Other current assets 5377 3607 2798 1285 1368 Total current assets 59308 52910 42623 41416 47134 Non current assets Property, plant and equipment Gross property, plant and equipment 434517 446789 447337 453915 Accumulated Depreciation 190867 194121 195732 209691 Net property, plant and equipment 243650 252668 251605 244224 252630 Equity and other investments 36328 35239 34245 35102 39160 Other long term assets 7522 8676 8285 9572 9767 Total non current assets 287500 296583 294135 288898 301557 Total assets 346808 349493 336758 330314 348691 Liabilities and stockholders' equity Liabilities Current liabilities Accounts payable 30920 25286 18074 17801 21701 Short term debt 15808 17468 18762 13830 17930 Income taxes payable 7831 4938 2802 2615 3045 Other current liabilities 17165 16941 14338 13392 15095 Total current liabilities 71724 64633 53976 47638 57771 Non current liabilities Long term debt 6516 11278 18687 27707 23079 Capital leases 375 375 1238 1225 1327 Deferred taxes liabilities 40530 39230 36818 34041 26893 Pensions and other postretirement benefits 20646 25802 22647 20680 21132 Minority interest 6492 6665 5999 6505 6812 Other long term liabilities 26522 27111 26582 25193 23989 Total non current liabilities 101081 110461 111971 115351 103232 Total liabilities 172805 175094 165947 162989 161003 Stockholders' equity Additional paid in capital 10077 10792 11612 12157 14656 Retained earnings 387432 408384 412444 407831 414540 Treasury stock 212781 225820 229734 230424 225246 Accumulated other comprehensive income 10725 18957 23511 22239 16262 Total Stockholders' equity 174003 174399 170811 167325 187688 Total liabilities and stockholders' equity 346808 349493 336758 330314 348691

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Evaluate Return on Equity for Exxon Mobil stock symbol XOM, for the last three years using the DuPont analysis. A) Find ROE, Net Profit Margin,

Evaluate Return on Equity for Exxon Mobil stock symbol XOM, for the last three years using the DuPont analysis.

A) Find ROE, Net Profit Margin, Asset Turnover, Financial Leverage for the last three years.

B) Find ROE, Net Profit Margin, Asset Turnover, Financial Leverage for the last year for major competitior.

C) Has the company's ROE changed over the ;last three years? What was the main factor that influenced the change?

D) Compare the ratios of Exxon Mobil to the competitor. If the management of company would like to improve their ROE, what should the management of the company do?

you can use morningstar.com

EXXON MOBIL CORP (XOM) CashFlowFlag INCOME STATEMENT
Fiscal year ends in December. USD in millions except per share data.	2013-12	2014-12	2015-12	2016-12	2017-12	TTM
Revenue	420836	/394105/	259488/	218608/	237162/	261554
Cost of revenue	332452	313470	206316	179496	182238	200971
Gross profit	88384	80635	53172	39112	54924	60583
Costs and expenses
Sales, General and administrative	12877	12598	11501	10799	10956	11488
Interest expense	9	286	311	453	601	648
Other operating expenses	17787	16121	19394	19891	24693	26095
Total costs and expenses	30673	29005	31206	31143	36250	38231
Income before income taxes	57711	51630	21966	7969	18674	22352
Provision for income taxes	24263	18015	5415	-406	-1174	1089
Net income from continuing operations	33448	33615	16551	8375	19848	21263
Other	-868	-1095	-401	-535	-138	-313
Net income	32580	32520	16150	7840	19710	20950
Net income available to common shareholders	32580	32520	16150	7840	19710	20950
Earnings per share
Basic	7.37	7.6	3.85	1.88	4.63	4.91
Diluted	7.37	7.6	3.85	1.88	4.63	4.91
Weighted average shares outstanding
Basic	4419	4282	4196	4177	4256	4269
Diluted	4419	4282	4196	4177	4256	4269
EBITDA	74902	69213	40325	30730	39168	42781

EXXON MOBIL CORP (XOM) CashFlowFlag BALANCE SHEET
Fiscal year ends in December. USD in millions except per share data.	2013-12	2014-12	2015-12	2016-12	2017-12
Assets
Current assets
Cash
Cash and cash equivalents	4644	4616	3705	3657	3177
Total cash	4644	4616	3705	3657	3177
Receivables	33152	28009	19875	21394	25597
Inventories	16135	16678	16245	15080	16992
Other current assets	5377	3607	2798	1285	1368
Total current assets	59308	52910	42623	41416	47134
Non-current assets
Property, plant and equipment
Gross property, plant and equipment	434517	446789	447337	453915
Accumulated Depreciation	-190867	-194121	-195732	-209691
Net property, plant and equipment	243650	252668	251605	244224	252630
Equity and other investments	36328	35239	34245	35102	39160
Other long-term assets	7522	8676	8285	9572	9767
Total non-current assets	287500	296583	294135	288898	301557
Total assets	346808	349493	336758	330314	348691
Liabilities and stockholders' equity
Liabilities
Current liabilities
Accounts payable	30920	25286	18074	17801	21701
Short-term debt	15808	17468	18762	13830	17930
Income taxes payable	7831	4938	2802	2615	3045
Other current liabilities	17165	16941	14338	13392	15095
Total current liabilities	71724	64633	53976	47638	57771
Non-current liabilities
Long-term debt	6516	11278	18687	27707	23079
Capital leases	375	375	1238	1225	1327
Deferred taxes liabilities	40530	39230	36818	34041	26893
Pensions and other postretirement benefits	20646	25802	22647	20680	21132
Minority interest	6492	6665	5999	6505	6812
Other long-term liabilities	26522	27111	26582	25193	23989
Total non-current liabilities	101081	110461	111971	115351	103232
Total liabilities	172805	175094	165947	162989	161003
Stockholders' equity
Additional paid-in capital	10077	10792	11612	12157	14656
Retained earnings	387432	408384	412444	407831	414540
Treasury stock	-212781	-225820	-229734	-230424	-225246
Accumulated other comprehensive income	-10725	-18957	-23511	-22239	-16262
Total Stockholders' equity	174003	174399	170811	167325	187688
Total liabilities and stockholders' equity	346808	349493	336758	330314	348691