: You are comparing the cash flow to debt ratios of two major oil companies, Exxon Mobil and Chevron, for the fiscal year ended December 31, 2023. Below are the summarized cash flow and debt data for both companies:

For Exxon Mobil:

• Operating cash flow: $50 billion
• Total debt: $100 billion

For Chevron:

• Operating cash flow: $60 billion
• Total debt: $120 billion

Requirements:

1. Calculate the cash flow to debt ratio for both Exxon Mobil and Chevron.
2. Compare the cash flow to debt ratios of Exxon Mobil and Chevron.
3. Discuss the debt servicing capacity and financial risk profiles of both companies based on their cash flow to debt ratios.