Stock Analysis on Net

Exxon Mobil Corp. (NYSE:XOM)

Economic Value Added (EVA)

Microsoft Excel

EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.


Economic Profit

Exxon Mobil Corp., economic profit calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net operating profit after taxes (NOPAT)1 31,476 37,855 62,749 32,736 (34,098)
Cost of capital2 12.92% 12.77% 12.85% 12.12% 10.87%
Invested capital3 378,995 307,196 297,049 272,673 273,920
 
Economic profit4 (17,473) (1,383) 24,581 (325) (63,875)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 31,47612.92% × 378,995 = -17,473

Item Description The company
Economic profit Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital. Exxon Mobil Corp. economic profit decreased from 2022 to 2023 and from 2023 to 2024.

Net Operating Profit after Taxes (NOPAT)

Exxon Mobil Corp., NOPAT calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income (loss) attributable to ExxonMobil 33,680 36,010 55,740 23,040 (22,440)
Deferred income tax expense (benefit)1 (830) 944 3,583 (44) (8,052)
Increase (decrease) in reserves2 205 (299) 30 66 69
Increase (decrease) in LIFO reserve3 (4,000) (1,000) 900 8,600 (4,300)
Increase (decrease) in restructuring reserves4 (77) (326) 403
Increase (decrease) in equity equivalents5 (4,625) (355) 4,436 8,296 (11,880)
Interest expense 996 849 798 947 1,158
Interest expense, operating lease liability6 317 234 134 119 150
Adjusted interest expense 1,313 1,083 932 1,066 1,308
Tax benefit of interest expense7 (276) (228) (196) (224) (275)
Adjusted interest expense, after taxes8 1,038 856 736 842 1,033
Net income (loss) attributable to noncontrolling interest 1,383 1,344 1,837 558 (811)
Net operating profit after taxes (NOPAT) 31,476 37,855 62,749 32,736 (34,098)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Elimination of deferred tax expense. See details »

2 Addition of increase (decrease) in reserves.

3 Addition of increase (decrease) in LIFO reserve. See details »

4 Addition of increase (decrease) in restructuring reserves.

5 Addition of increase (decrease) in equity equivalents to net income (loss) attributable to ExxonMobil.

6 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 6,478 × 4.90% = 317

7 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 1,313 × 21.00% = 276

8 Addition of after taxes interest expense to net income (loss) attributable to ExxonMobil.

Item Description The company
NOPAT Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income. Exxon Mobil Corp. NOPAT decreased from 2022 to 2023 and from 2023 to 2024.

Cash Operating Taxes

Exxon Mobil Corp., cash operating taxes calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Income tax expense (benefit) 13,810 15,429 20,176 7,636 (5,632)
Less: Deferred income tax expense (benefit) (830) 944 3,583 (44) (8,052)
Add: Tax savings from interest expense 276 228 196 224 275
Cash operating taxes 14,916 14,713 16,789 7,904 2,695

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Cash operating taxes Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction. Exxon Mobil Corp. cash operating taxes decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Invested Capital

Exxon Mobil Corp., invested capital calculation (financing approach)

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Notes and loans payable 4,955 4,090 634 4,276 20,458
Long-term debt, excluding due within one year 36,755 37,483 40,559 43,428 47,182
Operating lease liability1 6,478 6,010 5,594 5,190 5,162
Total reported debt & leases 48,188 47,583 46,787 52,894 72,802
Total ExxonMobil share of equity 263,705 204,802 195,049 168,577 157,150
Net deferred tax (assets) liabilities2 35,106 20,815 19,049 15,715 14,006
Reserves3 476 271 570 540 474
LIFO reserve4 10,000 14,000 14,900 14,000 5,400
Restructuring reserves5 77 403
Equity equivalents6 45,582 35,086 34,519 30,332 20,283
Accumulated other comprehensive (income) loss, net of tax7 14,619 11,989 13,270 13,764 16,705
Noncontrolling interests 6,901 7,736 7,424 7,106 6,980
Adjusted total ExxonMobil share of equity 330,807 259,613 250,262 219,779 201,118
Invested capital 378,995 307,196 297,049 272,673 273,920

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Addition of capitalized operating leases.

2 Elimination of deferred taxes from assets and liabilities. See details »

3 Addition of allowance for doubtful accounts receivable.

4 Addition of LIFO reserve. See details »

5 Addition of restructuring reserves.

6 Addition of equity equivalents to total ExxonMobil share of equity.

7 Removal of accumulated other comprehensive income.

Item Description The company
Invested capital Capital is an approximation of the economic book value of all cash invested in going-concern business activities. Exxon Mobil Corp. invested capital increased from 2022 to 2023 and from 2023 to 2024.

Cost of Capital

Exxon Mobil Corp., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 478,608 478,608 ÷ 522,861 = 0.92 0.92 × 13.85% = 12.68%
Debt3 37,775 37,775 ÷ 522,861 = 0.07 0.07 × 3.35% × (1 – 21.00%) = 0.19%
Operating lease liability4 6,478 6,478 ÷ 522,861 = 0.01 0.01 × 4.90% × (1 – 21.00%) = 0.05%
Total: 522,861 1.00 12.92%

Based on: 10-K (reporting date: 2024-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 413,926 413,926 ÷ 458,407 = 0.90 0.90 × 13.85% = 12.50%
Debt3 38,471 38,471 ÷ 458,407 = 0.08 0.08 × 3.44% × (1 – 21.00%) = 0.23%
Operating lease liability4 6,010 6,010 ÷ 458,407 = 0.01 0.01 × 3.90% × (1 – 21.00%) = 0.04%
Total: 458,407 1.00 12.77%

Based on: 10-K (reporting date: 2023-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 446,709 446,709 ÷ 489,324 = 0.91 0.91 × 13.85% = 12.64%
Debt3 37,021 37,021 ÷ 489,324 = 0.08 0.08 × 3.10% × (1 – 21.00%) = 0.19%
Operating lease liability4 5,594 5,594 ÷ 489,324 = 0.01 0.01 × 2.40% × (1 – 21.00%) = 0.02%
Total: 489,324 1.00 12.85%

Based on: 10-K (reporting date: 2022-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 325,013 325,013 ÷ 380,785 = 0.85 0.85 × 13.85% = 11.82%
Debt3 50,582 50,582 ÷ 380,785 = 0.13 0.13 × 2.67% × (1 – 21.00%) = 0.28%
Operating lease liability4 5,190 5,190 ÷ 380,785 = 0.01 0.01 × 2.30% × (1 – 21.00%) = 0.02%
Total: 380,785 1.00 12.12%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 240,038 240,038 ÷ 317,730 = 0.76 0.76 × 13.85% = 10.46%
Debt3 72,530 72,530 ÷ 317,730 = 0.23 0.23 × 2.06% × (1 – 21.00%) = 0.37%
Operating lease liability4 5,162 5,162 ÷ 317,730 = 0.02 0.02 × 2.90% × (1 – 21.00%) = 0.04%
Total: 317,730 1.00 10.87%

Based on: 10-K (reporting date: 2020-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »


Economic Spread Ratio

Exxon Mobil Corp., economic spread ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit1 (17,473) (1,383) 24,581 (325) (63,875)
Invested capital2 378,995 307,196 297,049 272,673 273,920
Performance Ratio
Economic spread ratio3 -4.61% -0.45% 8.28% -0.12% -23.32%
Benchmarks
Economic Spread Ratio, Competitors4
Chevron Corp. -5.21% -5.86% 4.63% -4.38% -18.44%
ConocoPhillips -5.37% 0.03% 12.63% -1.27% -19.81%
Occidental Petroleum Corp. -9.32% -5.74% 6.67% -5.20% -34.08%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Economic profit. See details »

2 Invested capital. See details »

3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -17,473 ÷ 378,995 = -4.61%

4 Click competitor name to see calculations.

Performance ratio Description The company
Economic spread ratio The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital. Exxon Mobil Corp. economic spread ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Economic Profit Margin

Exxon Mobil Corp., economic profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit1 (17,473) (1,383) 24,581 (325) (63,875)
Sales and other operating revenue 339,247 334,697 398,675 276,692 178,574
Performance Ratio
Economic profit margin2 -5.15% -0.41% 6.17% -0.12% -35.77%
Benchmarks
Economic Profit Margin, Competitors3
Chevron Corp. -5.61% -6.32% 4.17% -5.46% -38.52%
ConocoPhillips -10.43% 0.05% 12.15% -2.12% -53.65%
Occidental Petroleum Corp. -23.33% -11.55% 10.25% -11.64% -121.07%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Economic profit. See details »

2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Sales and other operating revenue
= 100 × -17,473 ÷ 339,247 = -5.15%

3 Click competitor name to see calculations.

Performance ratio Description The company
Economic profit margin The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin. Exxon Mobil Corp. economic profit margin deteriorated from 2022 to 2023 and from 2023 to 2024.