Exxon Mobile

 

 

 

You will be analyzing the following firms:
a. Chevron
b. Exxon Mobile
Please check the blackboard for the financial statements.
2
Project
The required tasks are detailed below:
(1) Prepare vertical common-size income statements and balance sheets for both companies.
Note: Use “Total Sales” and “Total Assets” as the denominators for income statement
and balance sheet, respectively. Compute for 2019, 2018, and 2017.
(2) Prepare horizontal analysis on income statements and balance sheets for both companies
for 2019 and 2018.
(3) Prepare ratio analyses (for 2019, 2018, and 2017) for both companies. You should
include the following ratios in your computations:
• Profitability ratios
o Gross Profit margin
o Profit margin
o Return on assets
o Return on equity
• Productivity
o Inventory Turnover
o Accounts Receivable Turnover
o PPE Turnover
o Asset Turnover
• Solvency
o Debt-to-equity
o Times interest earned
o Return on Financial leverage
• Liquidity
o Current Ratio
o Quick Ratio
o Operating cash flow to current liabilities
o Working capital
(3) Comment on the analytical results of the two companies based on your work in excel.
In addition to contrasting the ratios between the companies, you should interpret the
numbers and make suggestions as to why the ratio of one company might be higher/lower
than the other.
Note: General discussions of the ratios are given in our textbook, which will help you
structure your comments.
3
(4) Write a conclusive summary on the firms you have studied. Based upon your conclusions,
recommend the better performing firm for potential investment. Your conclusions should
be based upon, and specifically reference, the analyses prepared in this report.
Report Format Requirements:
A. Report body requirements:
1. Cover page. List the title of the project, your name, and semester/year.
2. Main body. Use the following sequence for report content:
a. Introduction to the two companies and to the purpose of the report
b. Analytical section. This should include all your numerical analyses. This is where
you will discuss the results of, comments on, and conclusions about, the Common
Size, horizontal, and the ratio analyses for both companies. When writing this
section, please explain each analysis (purpose/importance), and then discuss the
results.
c. Comparisons of companies and all other analysis (observations and/or
interpretations). (You may combine b and c if you wish, as long as both are well
covered.)
d. Conclusions and recommendation for investment.
3. References. List all major reference sources.
4. Appendices. Include tables and graphs of your numerical analyses. For reference
convenience, assign a title to each separate item, such as Table 1, Exhibit 1, etc.
B. Typesetting requirements:
1. Use size 12 font. Times New Roman is preferred.
2. Double space between lines.
3. Number pages.
4. One inch on all sides.

Sample Solution

ajor exports driver in that period were textiles, garments and footwear. Due to the major state investments a substantial growth was recorded in the heavy industries. But in early 1990, due to the higher competition in the markets, slower growth rate was recorded in the industries. In 1997 Indonesia faced crisis and between 1998 to 2004 Indonesia has elected five presidents and major modifications was recorded in the political structure. Indonesia recovered soon from the crisis. Now Indonesia has lots of jobs in service sector and technological advancements and deregulations has become the reasons for fastest growth occurrence (Aswicahyono, Hill & Narjoko 2011).

Characterstics of Indonesia Workplace: In Indonesian workplace relationship between superiors and employees are of paternal and maternal nature. Employees believe on their managers and superiors so much that they think whatever they do will be good. They are too much satisfied with the working conditions, co-workers, supervisors and superiors. They hesitate to communicate bad news to the superiors, so the communication is very less in the Indonesia workplace (Wulandari, Pia & John 2011). But in the western workplace, relationship and work is kept aside, targets are communicated to the employees. Employers expect that employees should share their problems with them and also come to the employers for further improvements in the business. Communication should be open from both sides. Due to large number of industries in Indonesia, cases of accidents at the workplace also has increased due to the wrong level of the machines, now Indonesian firms and Governments are arranging the machines according to the male and female posture levels. They are doing so for the well-being, health and comfort of the employees (Sutalaksana & Widyanti 2016). Indonesia has ranked fourth in the consumption of the cigarettes and as it has bad effects on the health of the people, So the WHO Framework Convention on Tobacco Control has taken initiatives for the safeguard of the people by banning this in the workplace and public places and in transportation. This is done by passing various laws.(Byron et al. 2013)
Social Stratification: In nineteen centuries, people was divided into various status system on the basis of races in Java. But in twentieth century, due to the economic changes and upgrading of western education the status pattern largely altered. Now discarding racial distinctions, education created the new status system like class of intellectual and non-intellectuals. These new classes challenged the European superior descents and also threatened the nobility status of Indonesian group. People are also stratified on the basis of religion like Islam, Arab Saudi and Kafir (White man). In previous years the people born in the Indonesia tried to hide their nationality but now have higher rank than Indonesian European and Indonesian Chinese. In present, people of European and Dutch nationality are not able to get good jobs and compete in Indonesia because of loss of status but some totok European and Americans are able to get good job if t

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