Exxon Mobil Corp. (NYSE:XOM)

The financial ratios presented demonstrate several notable trends between 2021 and 2025. Generally, adjusted ratios exhibit greater stability and, in many cases, higher values compared to their reported counterparts, suggesting the adjustments mitigate the impact of certain accounting treatments. Asset turnover, liquidity, leverage, and profitability metrics all show distinct patterns over the five-year period.

Asset Turnover

Reported total asset turnover initially increased from 0.82 in 2021 to 1.08 in 2022, before declining to 0.72 by 2025. The adjusted total asset turnover mirrors this trend, though the values remain consistently higher than the reported figures. Both reported and adjusted ratios indicate a decreasing efficiency in asset utilization towards the end of the period.

Liquidity

Both the reported and adjusted current ratios increased from 2021 to 2023, peaking at 1.48 and 1.70 respectively. A subsequent decline is observed in both ratios through 2025, falling to 1.15 and 1.26. The adjusted current ratio consistently demonstrates a stronger liquidity position than the reported ratio.

Leverage

Reported debt to equity and debt to capital ratios show a consistent decrease from 2021 to 2024, stabilizing in 2025. The adjusted ratios follow a similar pattern, with slightly lower values. Reported financial leverage also decreased from 2.01 to 1.73, while the adjusted financial leverage decreased from 1.69 to 1.46, indicating a reduction in financial risk over the period.

Profitability

Reported net profit margin experienced a significant increase from 8.33% in 2021 to 13.98% in 2022, followed by a decline to 8.91% in 2025. The adjusted net profit margin demonstrates a more stable and generally higher profitability, peaking at 15.59% in 2022 and remaining above 8.00% throughout the period. Both reported and adjusted return on equity (ROE) and return on assets (ROA) followed similar trends, with peaks in 2022 and declines towards 2025. The adjusted ROE and ROA consistently exceed the reported values, suggesting the adjustments positively impact profitability metrics.

In summary, the observed trends suggest a period of initial growth and increased profitability followed by a stabilization and slight decline in operational efficiency and profitability. The adjustments applied consistently present a more favorable financial picture, particularly regarding profitability and liquidity, indicating their potential significance in evaluating the company’s financial performance.

The period between December 31, 2021, and December 31, 2025, demonstrates fluctuating performance in asset turnover metrics. Sales and other operating revenue initially increased significantly before stabilizing and experiencing a slight decline. Total assets and adjusted total assets generally increased over the period, with a more substantial rise observed between 2022 and 2024, followed by a modest decrease in 2025.

Reported Total Asset Turnover

The reported total asset turnover ratio exhibited volatility throughout the analyzed timeframe. It began at 0.82 in 2021, increased to a peak of 1.08 in 2022, then decreased to 0.89 in 2023. A further decline was observed in 2024, falling to 0.75, and continued to 0.72 in 2025. This indicates a decreasing efficiency in generating sales revenue from total assets over the latter part of the period.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio mirrored the trend of the reported ratio, though with slightly different values. Starting at 0.79 in 2021, it rose to 1.05 in 2022, decreased to 0.86 in 2023, and then declined to 0.74 in 2024. The ratio remained constant at 0.72 in 2025. The consistency between the reported and adjusted ratios suggests that the adjustments to total assets do not significantly alter the overall interpretation of asset utilization efficiency.

Sales and Revenue Trend

Sales and other operating revenue increased substantially from US$276,692 million in 2021 to US$398,675 million in 2022, representing a significant growth period. However, revenue then decreased to US$334,697 million in 2023, followed by a slight increase to US$339,247 million in 2024, and a further decrease to US$323,905 million in 2025. This suggests a stabilization and eventual slight contraction in revenue generation towards the end of the period.

Asset Base Evolution

Both total assets and adjusted total assets generally increased over the five-year period. A notable increase occurred between 2023 and 2024, with total assets rising from US$376,317 million to US$453,475 million and adjusted total assets increasing from US$386,951 million to US$460,015 million. Both asset measures then experienced a modest decrease in 2025, indicating a potential shift in asset allocation or disposal strategies.

The combined trends suggest that while the asset base expanded, the efficiency with which those assets were used to generate revenue declined in the later years of the period. The consistent movement of both the reported and adjusted asset turnover ratios reinforces this observation.

The adjusted current ratio exhibited an increasing trend from 2021 to 2023, followed by a decline in the subsequent two years. This analysis details the observed patterns and potential implications based on the provided financial information.

Adjusted Current Ratio - Overall Trend

The adjusted current ratio increased from 1.30 in 2021 to a peak of 1.70 in 2023. Subsequently, the ratio decreased to 1.46 in 2024 and further to 1.26 in 2025. This suggests an initial strengthening of the short-term liquidity position, followed by a weakening trend.

Adjusted Current Assets

Adjusted current assets increased significantly from US$73,694 million in 2021 to US$113,101 million in 2022. While remaining elevated at US$110,880 million in 2023, they began to decline, reaching US$102,466 million in 2024 and US$90,822 million in 2025. This decrease in adjusted current assets likely contributed to the observed decline in the adjusted current ratio in the later years.

Adjusted Current Liabilities

Adjusted current liabilities remained relatively stable between 2021 and 2025, fluctuating between US$69,045 million and US$72,330 million. The consistency in current liabilities indicates that changes in the adjusted current ratio are primarily driven by fluctuations in adjusted current assets.

Comparison to Reported Current Ratio

The adjusted current ratio consistently exceeded the reported current ratio across all observed periods. This indicates that the adjustments made to current assets had a positive impact on the calculated liquidity position. The difference between the two ratios suggests that the reported figures may not fully reflect the company’s immediate ability to meet its short-term obligations.

Recent Performance (2024-2025)

The period from 2024 to 2025 demonstrates a clear downward trend in both adjusted current assets and the adjusted current ratio. While current liabilities remained relatively constant, the reduction in assets suggests a potential decrease in short-term financial flexibility. Further investigation into the nature of the asset reduction would be warranted.

The reported and adjusted debt to equity ratios demonstrate a generally decreasing trend over the five-year period from 2021 to 2025. While both metrics exhibit similar patterns, the adjusted ratios consistently present a slightly higher level of leverage compared to the reported figures. Total debt remained relatively stable between 2021 and 2024, with a modest increase observed in 2025. Conversely, total equity, both reported and adjusted, increased significantly from 2021 to 2024, followed by a slight decrease in 2025.

Reported Debt to Equity

The reported debt to equity ratio decreased from 0.28 in 2021 to 0.16 in 2024, indicating a strengthening equity position relative to debt. A slight increase to 0.17 was noted in 2025. This suggests improved financial leverage during the period, although the 2025 value indicates a potential stabilization of this trend.

Adjusted Debt to Equity

The adjusted debt to equity ratio followed a similar trajectory, declining from 0.26 in 2021 to 0.15 in 2024, before rising slightly to 0.16 in 2025. The consistent difference between the reported and adjusted ratios suggests that the adjustments made to debt and equity have a material impact on the overall leverage picture. The adjustments appear to consistently increase the calculated leverage compared to the reported figures.

Total Debt

Total debt decreased from US$47,704 million in 2021 to US$41,193 million in 2022, and remained relatively flat through 2024 at approximately US$41,500 - US$41,700 million. An increase to US$43,537 million was observed in 2025, representing the first substantial increase in the period. This suggests a recent shift in capital structure towards increased debt financing.

Total Equity

Both reported and adjusted total equity experienced substantial growth between 2021 and 2024. Reported equity increased from US$168,577 million to US$263,705 million, while adjusted equity rose from US$206,015 million to US$316,188 million. A modest decrease in both reported and adjusted equity was observed in 2025, indicating a potential plateau in equity growth.

In summary, the period from 2021 to 2024 was characterized by decreasing leverage ratios and increasing equity. The slight increases in debt and stabilization of equity in 2025 suggest a potential shift in financial strategy or operating conditions. The consistent difference between reported and adjusted ratios highlights the importance of understanding the nature of the adjustments made to arrive at the adjusted figures.

The information presents a five-year trend of debt and capital figures, culminating in adjusted debt-to-capital ratios. Total debt exhibited a decrease from 2021 to 2022, followed by relative stability through 2024, before increasing slightly in 2025. Total capital demonstrated a consistent upward trend from 2021 to 2024, with a minor decrease in 2025.

Reported Debt to Capital

The reported debt-to-capital ratio decreased steadily from 0.22 in 2021 to 0.14 in both 2024 and 2025. This indicates a decreasing reliance on debt financing relative to the company’s capital structure, as conventionally measured.

Adjusted Total Debt

Adjusted total debt increased from US$52,894 million in 2021 to US$50,371 million in 2025. While there were fluctuations in the interim years, the overall trend suggests a moderate increase in debt obligations when considering adjustments. The largest single-year increase occurred between 2024 and 2025.

Adjusted Total Capital

Adjusted total capital increased from US$258,909 million in 2021 to US$360,894 million in 2025. This growth was most pronounced between 2023 and 2024. The increase in adjusted capital outpaced the increase in adjusted debt, contributing to the observed ratio trends.

Adjusted Debt to Capital

The adjusted debt-to-capital ratio followed a similar pattern to the reported ratio, declining from 0.20 in 2021 to 0.13 in 2024, before increasing slightly to 0.14 in 2025. The ratio remained relatively stable between 2022 and 2024. The slight increase in 2025 suggests a marginal increase in leverage when considering the adjustments made to debt and capital calculations.

The difference between the reported and adjusted ratios suggests that the adjustments to debt and capital have a moderating effect on the perceived leverage of the company. The consistent downward trend in both reported and adjusted ratios through 2024 indicates strengthening financial health from a leverage perspective, although the 2025 figures suggest a potential shift in this trend.

An examination of the financial information reveals trends in adjusted financial leverage over a five-year period. Total assets exhibited an increasing pattern from 2021 to 2024, peaking at US$453,475 million, before experiencing a slight decrease in 2025 to US$448,980 million. Total ExxonMobil share of equity also demonstrated growth throughout the period, rising from US$168,577 million in 2021 to US$259,386 million in 2025.

Adjusted Financial Leverage – Overall Trend

Adjusted financial leverage consistently decreased from 1.69 in 2021 to 1.46 in 2025. This indicates a strengthening of the equity base relative to adjusted total assets over the observed timeframe. The rate of decline slowed between 2024 and 2025, suggesting a potential stabilization of the leverage ratio.

Adjusted Total Assets

Adjusted total assets generally followed an upward trajectory, increasing from US$349,013 million in 2021 to US$460,015 million in 2024. The 2025 value of US$452,661 million represents a modest decrease from the prior year, but remains significantly higher than the 2021 level.

Adjusted Total Equity

Adjusted total equity showed consistent growth throughout the period, increasing from US$206,015 million in 2021 to US$310,523 million in 2025. This growth in equity contributes to the observed decline in adjusted financial leverage.

Comparison with Reported Leverage

Reported financial leverage also decreased over the period, moving from 2.01 in 2021 to 1.73 in 2025. However, the adjusted financial leverage consistently reports lower values than the reported leverage for each year, indicating that the adjustments made to total assets and equity result in a more conservative leverage profile.

The observed trends suggest a strengthening financial position, characterized by increasing equity and a decreasing adjusted financial leverage ratio. The slight deceleration in the decline of adjusted financial leverage in the most recent year warrants continued monitoring.

The period between 2021 and 2025 demonstrates considerable fluctuation in financial performance. Net income attributable to ExxonMobil and sales and other operating revenue both experienced growth initially, followed by declines. However, the adjusted net profit margin presents a more nuanced picture of profitability.

Adjusted Net Profit Margin Trend

The adjusted net profit margin increased from 12.75% in 2021 to a peak of 15.59% in 2022. This suggests improved profitability, potentially driven by factors beyond core revenue generation. A subsequent decrease to 11.59% in 2023 indicates a moderation of these gains. A more substantial decline occurred in 2024, with the adjusted net profit margin falling to 8.01%, representing the lowest value within the observed period. A partial recovery to 9.90% is noted in 2025, but the margin remains below the levels seen in 2021, 2022, and 2023.

Relationship to Reported Net Profit Margin

The adjusted net profit margin consistently exceeds the reported net profit margin across all years. This difference implies that adjustments are being made to account for items that impact net income but are not considered representative of ongoing operational performance. The gap between the adjusted and reported margins appears to widen in 2022 and 2023, before narrowing in 2024 and 2025. This suggests the magnitude of these adjustments varied over time.

Revenue and Net Income Correlation

While sales and other operating revenue increased from 2021 to 2022, the adjusted net income experienced a proportionally larger increase. This suggests improved efficiency or cost management during that period. However, as revenue declined in 2023, 2024, and 2025, adjusted net income also decreased, though not always at the same rate. The decline in adjusted net income was more pronounced in 2024, contributing to the significant drop in the adjusted net profit margin.

Overall, the adjusted net profit margin demonstrates a volatile pattern. The initial increase followed by a substantial decline and partial recovery suggests sensitivity to external factors or specific accounting adjustments. Further investigation into the nature of these adjustments would be necessary to fully understand the underlying drivers of profitability.

The period between 2021 and 2025 demonstrates fluctuating financial performance as reflected in adjusted return on equity (ROE). Reported ROE and adjusted ROE generally move in tandem, though with differing magnitudes. Initial increases are followed by declines, suggesting sensitivity to underlying financial factors.

Adjusted Return on Equity (ROE) - Overall Trend

Adjusted ROE began at 17.13% in 2021, increased significantly to a peak of 26.22% in 2022, then decreased to 15.67% in 2023. A more substantial decline occurred in 2024, falling to 8.59%, before a partial recovery to 10.33% in 2025. This pattern indicates a period of strong profitability followed by diminishing returns.

Net Income and Equity Relationship

The increase in adjusted ROE from 2021 to 2022 aligns with a substantial rise in adjusted net income, from US$35,291 million to US$62,151 million, coupled with a moderate increase in adjusted total equity, from US$206,015 million to US$236,992 million. The subsequent decline in adjusted ROE from 2022 to 2024 is associated with a decrease in adjusted net income, falling to US$27,168 million, while adjusted total equity continued to increase, reaching US$316,188 million. The slight increase in adjusted ROE in 2025 corresponds with a modest increase in adjusted net income to US$32,078 million and a slight decrease in adjusted total equity to US$310,523 million.

Comparison with Reported ROE

Reported ROE mirrors the trend of adjusted ROE, but consistently reports lower values. The difference between reported and adjusted ROE suggests the presence of items impacting net income or equity that are adjusted for in the latter calculation. The gap between the two metrics appears to widen during periods of lower profitability, such as in 2024, indicating that these adjustments have a more significant impact when net income is lower.

Equity Fluctuations

Adjusted total equity exhibited a consistent upward trend from 2021 to 2024, increasing from US$206,015 million to US$316,188 million. A slight decrease was observed in 2025, with adjusted total equity falling to US$310,523 million. This growth in equity, even during periods of declining profitability, suggests factors such as retained earnings or other equity contributions were present.

In summary, the adjusted ROE demonstrates a cyclical pattern, peaking in 2022 and declining thereafter, with a slight recovery in the final year. The interplay between adjusted net income and adjusted total equity appears to be the primary driver of these fluctuations. The consistent difference between reported and adjusted ROE highlights the importance of considering adjustments when evaluating the company’s profitability.

The adjusted return on assets (ROA) exhibited fluctuating performance over the five-year period. Initial values were strong, followed by a decline and subsequent partial recovery. A detailed examination of the components and trends is presented below.

Adjusted ROA Trend

The adjusted ROA began at 10.11% in 2021, increasing significantly to a peak of 16.32% in 2022. This was followed by a decrease to 10.03% in 2023. A more pronounced decline occurred in 2024, with the adjusted ROA falling to 5.91%. A partial recovery was observed in 2025, with the adjusted ROA rising to 7.09%.

Relationship to Adjusted Net Income

Adjusted net income attributable to ExxonMobil generally moved in a similar pattern to the adjusted ROA. It increased from US$35,291 million in 2021 to US$62,151 million in 2022, then decreased to US$38,802 million in 2023. A substantial decrease was noted in 2024, falling to US$27,168 million, before a partial recovery to US$32,078 million in 2025. This correlation suggests that changes in profitability were a primary driver of the adjusted ROA fluctuations.

Relationship to Adjusted Total Assets

Adjusted total assets increased steadily from US$349,013 million in 2021 to US$380,712 million in 2022 and US$386,951 million in 2023. A significant increase was observed in 2024, reaching US$460,015 million, followed by a slight decrease to US$452,661 million in 2025. The increase in assets in 2024, coupled with the decline in adjusted net income, likely contributed to the substantial decrease in adjusted ROA observed in that year.

Comparison to Reported ROA

The adjusted ROA consistently exceeded the reported ROA across all observed years. The difference between the two ratios varied, but the adjusted ROA generally provided a higher return figure. This indicates that the adjustments made to net income and total assets had a positive impact on the calculated return on assets.

In summary, the adjusted ROA demonstrated volatility over the period, influenced by both changes in adjusted net income and adjusted total assets. The substantial increase in assets in 2024 appears to have negatively impacted the adjusted ROA, despite a partial recovery in 2025.