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Unformatted text preview: low For the Fiscal Period Ending Currency Net Income Depreciation & Amort. Amort. of Goodwill and Intangibles Depreciation & Amort., Total Foreign Exchange Rate Adj. Net Change in Cash Supplemental Items Cash Interest Paid Cash Taxes Paid Levered Free Cash Flow Unlevered Free Cash Flow Change in Net Working Capital Net Debt Issued Filing Date Restatement Type Calculation Type - - - Tests of Profitability The numbers tell a story… XOM CVX 2011 Return on Equity (ROE) Income/Average Shareholders' Equity Return on Assets (ROA) Income/Average Total Assets DuPont Analysis Income/Revenue Revenue/Average Total Assets Average Total Assets/Average Shareholders' Equity ROE Financial Leverage Percentage ROE - ROA Earnings Per Share Income/Average Number of Common Shares Outstanding Quality of Income Cash From Operations/Income Profit Margin Income/Revenue Fixed Asset Turnover Revenue/Average Net PP&E Gross Margin % Gross profit / Revenues Tests of Liquidity Cash Ratio (Cash + Cash Equivalents)/Current Liabilities Current Ratio Current Assets/Current Liabilities Quick Ratio Quick Assets/Current Liabilities Receivable Turnover Net Credit Sales/Average Net Receivables Inventory Turnover Cost of Goods Sold/Average Inventory Tests of Solvency Times interest Earned EBIT/Interest Expense Cash Coverage Cash Flows from Operating Activities/Interest Paid Debt-to-Equity Total Liabilities/Owners' Equity Financial Leverage Total assets / Total shareholders’ equity Market Tests Price/Earnings Ratio Current Market Price/EPS Dividend Yield Dividends Per Share/Market Price per Share Dividend payout ratio dividends on common shares / earnings available to common shareholders Market-to-Book ratio Market price per common share / Book value per common share Market Price on Statement Date 2012 2011 2012 0.262 0.270 0.236 0.201 XOM has higher ROE - Why? 0.130 0.135 0.136 0.118 Partly due to higher ROA - better assets? Better operator? 0.094 1.382 2.021 0.262 0.105 1.289 2.000 0.270 0.114 1.199 1.729 0.236 0.118 1.006 1.702 0.201 Lower margins Higher asset turnover - better assets/operator? Higher Leverage The above combines to the ROE 0.132 0.135 0.099 0.083 XOM uses more leverage 8.673 9.969 13.575 13.448 Not overly relevant unless combined with share pricing 1.348 1.252 1.528 1.483 Very high quality income (what if it was 0.50?) 0.094 0.105 0.114 0.118 XOM less profitable on the bottom line - why? 2.113 1.940 2.081 1.686 XOM better at using its PP&E 0.305 0.297 0.308 0.302 Identical 0.163 0.149 0.597 0.641 XOM holds very little cash compared to CVX 0.941 1.005 1.584 1.629 Impact of cash held by CVX? 0.748 0.778 1.419 1.449 Is liquidity a concern for either company? 15.776 14.666 11.156 10.450 We substitute revenue for net credit sales when unavailable 21.717 20.369 29.628 26.581 CVX better inventory turnover, but much lower inventory 235.688 175.972 NA NA CVX shows long-term debt… why no interest expense? 99.363 101.207 NA NA CVX shows long-term debt… why no interest expense? 1.059 0.945 0.714 0.690 What would this ratio be with Debt-to-Equity using market values? 2.059 1.945 1.714 1.690 XOM still somewhat more levered 9.772 8.682 7.838 8.041 Market paying a premium for XOM - why? 2.18% 2.52% 2.90% 3.25% Much worse dividend? Difference dividend growth rates? What about repurchases? 21.97% 22.49% 22.81% 26.14% 2.496 2.270 1.725 1.527 84.76 86.55 106.4 108.14...
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This document was uploaded on 02/05/2014.

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