Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
Exxon Mobil Corp., profitability ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| Operating profit margin | ||||||
| Net profit margin | ||||||
| Return on Investment | ||||||
| Return on equity (ROE) | ||||||
| Return on assets (ROA) | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
The profitability metrics demonstrate a period of significant fluctuation followed by a stabilization trend. Initial values indicate strong performance in 2021, which experienced substantial growth in 2022 before receding in subsequent years. The period between 2022 and 2025 shows a consistent, though moderating, decline across all measured ratios.
- Operating Profit Margin
- The operating profit margin nearly doubled from 11.91% in 2021 to 19.82% in 2022. However, this was followed by a decline to 16.24% in 2023, 14.74% in 2024, and further to 13.05% in 2025. This suggests increasing operating costs or decreasing revenue growth relative to costs in the later periods.
- Net Profit Margin
- Mirroring the trend in operating profit margin, the net profit margin increased significantly from 8.33% in 2021 to 13.98% in 2022. Subsequent years saw a decrease to 10.76% in 2023, 9.93% in 2024, and 8.91% in 2025. This indicates that while operating performance improved initially, net income growth slowed and ultimately reversed.
- Return on Equity (ROE)
- Return on equity exhibited the most dramatic fluctuation. It rose from 13.67% in 2021 to a peak of 28.58% in 2022, before declining to 17.58% in 2023, 12.77% in 2024, and 11.12% in 2025. This suggests a substantial increase in profitability relative to shareholder equity in 2022, followed by a diminishing return in subsequent years. The decline may be attributable to decreased net income or changes in equity structure.
- Return on Assets (ROA)
- The return on assets followed a similar pattern to the other ratios. It increased from 6.80% in 2021 to 15.10% in 2022, then decreased to 9.57% in 2023, 7.43% in 2024, and 6.42% in 2025. This indicates that the company’s ability to generate profit from its assets diminished after the peak performance in 2022.
Overall, the observed trends suggest a period of exceptional profitability in 2022, followed by a consistent, albeit moderating, decline in all measured profitability ratios through 2025. The rates of decline appear to be slowing, indicating a potential stabilization of performance, though at levels lower than the 2022 peak.
Return on Sales
Return on Investment
Operating Profit Margin
Exxon Mobil Corp., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Sales and other operating revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Operating Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Operating Profit Margin, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Operating profit margin = 100 × Operating income ÷ Sales and other operating revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited significant fluctuation over the five-year period. Initial values demonstrated a substantial increase followed by a consistent decline.
- Operating Profit Margin Trend
- The operating profit margin began at 11.91% in 2021. A marked increase was observed in 2022, reaching 19.82%, representing the highest value within the observed timeframe. Subsequent years show a consistent downward trend, with the margin decreasing to 16.24% in 2023, 14.74% in 2024, and finally reaching 13.05% in 2025.
The increase in operating profit margin from 2021 to 2022 coincided with a considerable rise in sales and other operating revenue, and a larger increase in operating income. However, despite continued high sales figures in subsequent years, the operating profit margin decreased. This suggests that while revenue remained substantial, the rate at which operating income grew relative to revenue slowed, or even declined, leading to the observed margin compression.
- Relationship to Operating Income and Revenue
- Operating income increased significantly from 2021 to 2022, but decreased in subsequent years. Sales and other operating revenue also increased from 2021 to 2022, and while it decreased in 2023 and 2025, it remained relatively stable in 2024. The declining operating profit margin indicates that the growth in operating income did not keep pace with the growth in revenue in 2022-2025, or that costs associated with generating revenue increased at a faster rate than revenue itself.
The consistent decline in the operating profit margin from 2022 to 2025 warrants further investigation into the underlying cost structure and pricing strategies. While revenue remains high, the diminishing profitability suggests potential challenges in maintaining earnings power.
Net Profit Margin
Exxon Mobil Corp., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to ExxonMobil | ||||||
| Sales and other operating revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Net Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Profit Margin, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net profit margin = 100 × Net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited significant fluctuation over the five-year period. Initial values demonstrated a substantial increase followed by a consistent decline.
- Net Profit Margin Trend
- In 2021, the net profit margin stood at 8.33%. This figure rose considerably to 13.98% in 2022, representing a peak within the observed timeframe. Subsequently, the margin decreased to 10.76% in 2023, continuing its downward trajectory to 9.93% in 2024. By 2025, the net profit margin had further declined to 8.91%.
The increase in net profit margin from 2021 to 2022 coincided with a substantial rise in sales and other operating revenue, and a larger increase in net income attributable to ExxonMobil. However, despite continued high levels of sales and other operating revenue in subsequent years, the net profit margin decreased. This suggests that while revenue remained strong, the rate at which net income grew relative to revenue diminished.
- Relationship to Revenue
- While sales and other operating revenue increased from 2021 to 2022, the subsequent years showed relatively stable revenue figures. The decline in net profit margin from 2022 to 2025 occurred despite relatively consistent revenue, indicating that factors beyond revenue volume, such as cost of goods sold, operating expenses, or other income/expenses, likely contributed to the decreasing profitability.
The observed trend suggests a potential erosion of pricing power or an increase in operational costs relative to revenue. Further investigation into the underlying drivers of net income and revenue is warranted to fully understand the factors influencing the net profit margin.
Return on Equity (ROE)
Exxon Mobil Corp., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to ExxonMobil | ||||||
| Total ExxonMobil share of equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| ROE, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| ROE, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
ROE = 100 × Net income attributable to ExxonMobil ÷ Total ExxonMobil share of equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited significant fluctuation over the five-year period. Net income attributable to ExxonMobil and total shareholder equity both increased between 2021 and 2022, contributing to a substantial rise in ROE. However, subsequent years demonstrate a clear downward trend in this key profitability metric.
- ROE Trend
- ROE increased markedly from 13.67% in 2021 to 28.58% in 2022. This increase coincided with a substantial rise in net income. Following 2022, ROE decreased consistently, reaching 17.58% in 2023, 12.77% in 2024, and further declining to 11.12% in 2025. This downward trend suggests diminishing returns on shareholder equity.
- Net Income Impact
- While net income remained relatively high throughout the period, it decreased from its peak in 2022. The decline in net income from 2022 to 2025 contributed to the observed decrease in ROE. The largest decrease in net income occurred between 2022 and 2023.
- Equity Impact
- Total shareholder equity increased from 2021 to 2024, but experienced a slight decrease in 2025. The continued growth in equity, even as net income declined, further exacerbated the downward trend in ROE, as the denominator in the ROE calculation increased while the numerator decreased. The most significant increase in equity occurred between 2023 and 2024.
The combination of decreasing net income and increasing equity resulted in a consistent decline in ROE from 2022 to 2025. This suggests that the company is becoming less efficient at generating profits from shareholder investments, despite overall equity growth.
Return on Assets (ROA)
Exxon Mobil Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to ExxonMobil | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| ROA, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| ROA, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
ROA = 100 × Net income attributable to ExxonMobil ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited significant fluctuation over the five-year period. Initial values demonstrated a substantial increase followed by a consistent decline.
- Overall Trend
- The ROA increased markedly from 6.80% in 2021 to a peak of 15.10% in 2022. Subsequently, the ROA experienced a consistent downward trend, decreasing to 9.57% in 2023, 7.43% in 2024, and further to 6.42% in 2025.
- Year-over-Year Changes
- The largest year-over-year increase occurred between 2021 and 2022, with the ROA more than doubling. The subsequent years all showed declines. The decrease from 2023 to 2024 was 2.14 percentage points, while the decrease from 2024 to 2025 was 1.01 percentage points. The rate of decline lessened in the most recent period.
- Relationship to Underlying Components
- The substantial increase in ROA from 2021 to 2022 was driven by a significant increase in net income attributable to ExxonMobil, which more than offset a moderate increase in total assets. The subsequent declines in ROA coincided with decreases in net income, despite continued growth in total assets. The increase in total assets from 2023 to 2024 was substantial, yet the ROA still decreased, indicating that the decline in net income had a greater impact.
The observed trend suggests a diminishing ability to generate profit relative to the size of the asset base. While the ROA remains positive, the consistent decline warrants further investigation into the factors influencing both net income and asset utilization.