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The financial performance of Exxon Mobil for the year 2013 Essay Example

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The financial performance of Exxon Mobil for the year 2013

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The financial performance of Exxon Mobil for the year 2013. From the income statement, the operating revenue and sales figures for Exxon Mobil declined from $303,670 million in 2012 to $284,681 in 2013. This is the recognized aggregate revenue for the period. The organization experiences a growth in the expenses involved in manufacturing and production in gas and oil from $38521 million to $40,525 million and a decline in the sales from $453,123 million to $420,836 million. The company’s income before taxes significantly declined in 2013 to $57, 711 million from $78726 million in 2012. Net income due to Exxon Mobil also declined to $32580 million from $44880 million in 2012. This shows that the company’s profitability declined in 2013. The decline is attributed to the fluctuations in the global prices of oil, which made the company focus more on its downstream activities (Elliot &

Elliot J, 2008).However, Exxon Mobil’s adjustment of postretirement benefits reserves continued to increase in 2013, showing that the company continued to invest in benefits plans. From the company’s Comprehensive Income Statement, the comprehensive income due to Exxon Mobil significantly declined in 2013. The net cash value used in the organization’s operating activities also declined in the same year, resulting from the reduced activity upstream. The cash flow from the sale of assets and operations declined from $63,825 in 2012 to $47,621 in 2013.Financial Ratio AnalysisThe gross margin for Exxon Mobil was 27.6% in 2013, down from 29.9% in 2012 and 31.6% in 2010. The operating margin for the organization in 2012 and 2013 was 16.3% and 13.2% respectively. The earnings per share for the organization for the two respective years were at 9.7 dollars and 7.37 dollars (ExxonMobil, n.d.). As indicated in the financial statements of the company, the organization failed to record a growth in its profits. This adversely affected the earnings per share for the organization, making them drop significantly. The decline in profitability and rate of growth for the company directly affected its earnings per share. The financial performance of Exxon Mobil for the year 2013.

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