Question

with ExxonMobil corporation what is the financial Analysis?
A) probability
B) liquidity
C)Leverage
D)Market Summary
I stock Price
ii P/E Ratio
iii Historical Trends
brief summary of the following

Answer 1

These ratios are for the year ending 2018:

Answer(A): Profitability- These ratios are as following:

Gross profit margin = (Gross profit/Sales) * 100

Gross profit margin = 30.96%

Net profit margin = (Net profit/Sales) * 100

Net profit margin = 7.46%

Return on Equity = (Net profit/Shareholder's equity) * 100

ROE = 10.87%

Return on Assets = (Net profit/Total assets)*100

ROA = 6.02%

Answer(B): Liquidity ratios- These ratios are as following:

Current Ratio = Current assets / Current liabilities

Current ratio = .84

Cash ratio = (Cash + Cash equivalents) / Current liabilities

Cash ratio = .05

Answer(C): Leverage ratios:

Debt-Equity ratio = Total liabilities / Total equity

Debt to equity ratio = .20

Interest coverage ratio = EBIT / Interest expense

Interest coverage ratio = 41.41

Current P/E Ratio (May,03, 2019) = 17.45.

Company is having good profitability, liquidity position is not up to the mark as current ratio is below 1. Company has less debt, its debt equity ratio is .20, company can easily pay its interest expenses.