Your SlideShare is downloading. ×
Financial Condition Assessment: Chevron Corp and ExxonMobil Marc Kirkland – Revenues and income changes Dan Dyer – Ratios ...
Cash Generated-Chevron  (2004-2006) <ul><li>Operating  </li></ul><ul><ul><li>Accounts Receivable  </li></ul></ul><ul><ul><...
Cash Generated- Exxon (2004-2006) <ul><li>Operating  </li></ul><ul><ul><li>Accounts Payable  </li></ul></ul><ul><li>Invest...
Total Revenue <ul><li>Chevron </li></ul><ul><li>2004- $155.3 Billion </li></ul><ul><li>2005- $198.2 Billion </li></ul><ul>...
Chevron Corp Ratios <ul><li>Avg collection period </li></ul><ul><li>2004  16.27 days </li></ul><ul><li>2005  17.38 days </...
ExxonMobil Ratios <ul><li>Avg collection period </li></ul><ul><li>2004  31.06 days </li></ul><ul><li>2005  27.06 days </li...
<ul><li>How do Chevron and ExxonMobil plan for alternative energy sources? </li></ul><ul><li>Chevron-Energy for the Future...
Organizational Strengths <ul><li>Chevron Corp </li></ul><ul><ul><li>15% average increase in dividends over the last 3 year...
Organizational Strengths <ul><li>ExxonMobil </li></ul><ul><ul><li>8.9% average increase in dividends over the last 3 years...
<ul><li>Improvements: </li></ul><ul><ul><li>Few financial weaknesses in either company </li></ul></ul><ul><ul><li>Optimize...
Embrace the future: the energy of change <ul><li>Population growth consideration </li></ul><ul><li>Oil is the engine of ec...
<ul><li>Strong EPS figures and EPS growth over the past 3 fiscal years </li></ul><ul><li>Operational effectiveness evidenc...
To invest or digress… <ul><li>Excellent sales growth over the past 3 fiscal years </li></ul><ul><li>Volatility and the bet...
In conclusion <ul><li>Corporations such as Chevron and ExxonMobil provide the basic building block of the United States ec...
Upcoming SlideShare
Loading in...5
×

Financial Condition Assessment Final

1,235

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,235
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Both Chevron and ExxonMobil operate today, but are mindful of the future, factoring things such as: World Pop growth: -8 Billion people estimated for world pop in 2030 -over 50% of growth from developing nations -reliable, affordable, cleaner energy will be sought out -60% increase in energy demand in 2030 (compared to 2000) 2. Contrary to public belief, more than adequate oil and natural gas supplies exist: -oil is the transportation fuel of choice, and will remain so for decades to come -estimated liquid energy demand by 2030 is 115 million barrels/day. Resources abound 3. Assets are in place: -operations in over 180 countries -Not a 5 year plan, more like a 25 year plan! -expensive land and production assets and infrastructure dictate a farther look into the future -long distance view ignores short-term trends -continued upstream exploration operations 4. Technological advances: -deep water drilling down to over 28,000 feet! -oil shale, heavy oil refining techniques will unlock proven reserves potential -GTL (gas to liquids) technology ex. Converting natural gas to ultraclean diesel fuel -energy efficiency 5. Alt energy sources coming on line: -biofuels -solar -wind -geothermal
  • 1. -Both Chevron and ExxonMobil outperformed the S&amp;P500 in terms of EPS growth -bordering 30% 2. -Effective management of global organizations. -High ROI reinforces the true stocks’ values -Chevron: -ROI: 22.9% -ROE: 24.6% -ROA: 12.9% -Exxon: -ROI: 30.8% -ROE: 32.6% -ROA: 18.0% -Chevron’s ROA and ROE outperformed S&amp;P500 by almost 10% last year -Exxon’s ROA and ROE outperformed S&amp;P500 by over 2:1 last year 3. -Chevron had 19 years straight of dividend increases -ExxonMobil had an 8.9% div increase over the past 3 years
  • 1. -Chevron’s sales growth increased by 19.9% over 3 years -Exxon’s sales growth increased by 15.2% over 3 years Both profit margins and ROE margins should be positively affected 2. Beta = stability Beta compares stock to the S&amp;P500. S&amp;P500 is a composite of large cap stocks, thought to reflect the market as a whole, thus measuring the US economy. 3. February 1, 2008 both will announce Q4 2007 EPS figures. That’s tomorrow!
  • IN CONCLUSION: -Chevron and ExxonMobil are not just “Big oil.” They are the arbitors of world development and growth -Both companies look far into the future and plan accordingly for change -Both companies emphasize world energy growth and efficiency as main objectives to conquer -Both companies have strong financials, are stable and tend to operate in a low profit-high volume manner -Our team conveyed 6 critical pieces of information offered as consideration for investment THANK YOU FOR YOUR TIME QUESTIONS?
  • Transcript of "Financial Condition Assessment Final"

    1. 1. Financial Condition Assessment: Chevron Corp and ExxonMobil Marc Kirkland – Revenues and income changes Dan Dyer – Ratios and benchmarks Neil Sinay – Core competencies and improvements Matt Ellis – Investment considerations
    2. 2. Cash Generated-Chevron (2004-2006) <ul><li>Operating </li></ul><ul><ul><li>Accounts Receivable </li></ul></ul><ul><ul><li>Other Liabilities </li></ul></ul><ul><li>Investing </li></ul><ul><ul><li>Fixed Assets </li></ul></ul><ul><ul><li>Investing Activities </li></ul></ul><ul><li>Financing </li></ul><ul><ul><li>Retirement Stock </li></ul></ul><ul><ul><li>Dividend Payout </li></ul></ul>
    3. 3. Cash Generated- Exxon (2004-2006) <ul><li>Operating </li></ul><ul><ul><li>Accounts Payable </li></ul></ul><ul><li>Investing </li></ul><ul><ul><li>Fixed Assets </li></ul></ul><ul><ul><li>Treasury Stock </li></ul></ul><ul><li>Financing </li></ul><ul><ul><li>Dividend Payout </li></ul></ul><ul><ul><li>Retirement Stock </li></ul></ul>
    4. 4. Total Revenue <ul><li>Chevron </li></ul><ul><li>2004- $155.3 Billion </li></ul><ul><li>2005- $198.2 Billion </li></ul><ul><li>2006- $210.1 Billion </li></ul><ul><li>73% Increase </li></ul><ul><li>Exxon </li></ul><ul><li>2004- $298 Billion </li></ul><ul><li>2005- $370.6 Billion </li></ul><ul><li>2006- $377.6 Billion </li></ul><ul><li>79% Increase </li></ul>
    5. 5. Chevron Corp Ratios <ul><li>Avg collection period </li></ul><ul><li>2004 16.27 days </li></ul><ul><li>2005 17.38 days </li></ul><ul><li>2006 17.22 days </li></ul><ul><li>Return on assets </li></ul><ul><li>2004 15% </li></ul><ul><li>2005 12% </li></ul><ul><li>2006 13% </li></ul><ul><li>Total debt </li></ul><ul><li>2004 51% </li></ul><ul><li>2005 50% </li></ul><ul><li>2006 48% </li></ul><ul><li>Profit margin </li></ul><ul><li>2004 9% </li></ul><ul><li>2005 7% </li></ul><ul><li>2006 8% </li></ul>
    6. 6. ExxonMobil Ratios <ul><li>Avg collection period </li></ul><ul><li>2004 31.06 days </li></ul><ul><li>2005 27.06 days </li></ul><ul><li>2006 27.97 days </li></ul><ul><li>Return on assets </li></ul><ul><li>2004 14% </li></ul><ul><li>2005 18% </li></ul><ul><li>2006 19% </li></ul><ul><li>Total debt </li></ul><ul><li>2004 48% </li></ul><ul><li>2005 47% </li></ul><ul><li>2006 48% </li></ul><ul><li>Profit margin </li></ul><ul><li>2004 8% </li></ul><ul><li>2005 10% </li></ul><ul><li>2006 10% </li></ul>
    7. 7. <ul><li>How do Chevron and ExxonMobil plan for alternative energy sources? </li></ul><ul><li>Chevron-Energy for the Future </li></ul><ul><li>ExxonMobil-Tomorrow’s Energy </li></ul>Benchmarking
    8. 8. Organizational Strengths <ul><li>Chevron Corp </li></ul><ul><ul><li>15% average increase in dividends over the last 3 years </li></ul></ul><ul><ul><ul><li>Increase in dividends for 19 straight years </li></ul></ul></ul><ul><ul><li>Strong Earnings-Per-Share growth </li></ul></ul><ul><ul><ul><li>Almost 30% growth over last 3 fiscal years </li></ul></ul></ul><ul><ul><li>Strong returns </li></ul></ul><ul><ul><ul><li>22.9% ROI </li></ul></ul></ul><ul><ul><ul><li>24.6% ROE </li></ul></ul></ul><ul><ul><ul><li>12.9% ROA </li></ul></ul></ul><ul><ul><li>Sales growth increased 19.9% over last 3 fiscal years </li></ul></ul><ul><ul><li>Beta Factor – 0.71 </li></ul></ul><ul><ul><ul><li>Measure of individual stock volatility, the propensity of the stock’s price to fluctuate </li></ul></ul></ul><ul><ul><li>Strong EPS estimated for 2007 – Roughly $8.43 </li></ul></ul>
    9. 9. Organizational Strengths <ul><li>ExxonMobil </li></ul><ul><ul><li>8.9% average increase in dividends over the last 3 years </li></ul></ul><ul><ul><li>Strong Earnings-Per-Share growth </li></ul></ul><ul><ul><ul><li>Almost 30% growth over last 3 fiscal years </li></ul></ul></ul><ul><ul><li>Strong returns </li></ul></ul><ul><ul><ul><li>30.8% ROI </li></ul></ul></ul><ul><ul><ul><li>32.6% ROE </li></ul></ul></ul><ul><ul><ul><li>18.0% ROA </li></ul></ul></ul><ul><ul><li>Sales growth increased 15.2% over last 3 fiscal years </li></ul></ul><ul><ul><li>Beta Factor – 0.77 </li></ul></ul><ul><ul><ul><li>Measure of individual stock volatility, the propensity of the stock’s price to fluctuate </li></ul></ul></ul><ul><ul><li>Strong EPS estimated for 2007 – Roughly $7.10 </li></ul></ul>
    10. 10. <ul><li>Improvements: </li></ul><ul><ul><li>Few financial weaknesses in either company </li></ul></ul><ul><ul><li>Optimize use of energy </li></ul></ul><ul><ul><li>Invest more in renewable energy sources </li></ul></ul><ul><li>Suggestions: </li></ul><ul><ul><li>Both companies are solid investments </li></ul></ul><ul><ul><ul><li>Year over year dividend growth </li></ul></ul></ul><ul><ul><ul><li>Solid stock volatility ratings </li></ul></ul></ul>Improvements and suggestions
    11. 11. Embrace the future: the energy of change <ul><li>Population growth consideration </li></ul><ul><li>Oil is the engine of economic growth world wide </li></ul><ul><li>Assets are in place </li></ul><ul><li>Technological advances </li></ul><ul><li>Alternative energy sources coming on line </li></ul>
    12. 12. <ul><li>Strong EPS figures and EPS growth over the past 3 fiscal years </li></ul><ul><li>Operational effectiveness evidenced by ROI, ROE and ROA </li></ul><ul><li>Dividend increases </li></ul>To invest or digress…
    13. 13. To invest or digress… <ul><li>Excellent sales growth over the past 3 fiscal years </li></ul><ul><li>Volatility and the beta factor </li></ul><ul><li>2007 Q4 reports right around the corner </li></ul>Volatility Chevron 0.71 ExxonMobil 0.77 S&P500 1.00
    14. 14. In conclusion <ul><li>Corporations such as Chevron and ExxonMobil provide the basic building block of the United States economy and other world economies </li></ul><ul><li>Petroleum allows economies to grow over time and avoid stagnation </li></ul>

    ×