Exxon versus Chevron
Exxon versus Chevron
Leanna Rigney
ACC 303
Benson Kariuki-Mwangi
Strayer University
02-28-2015
Exxon versus Chevron
Compare and contrast the limitations and usefulness of the single-step income statement and the multi-step income statement. The single-step income statement shows a company’s net profit or net loss in a single mathematical equation. This statement does not separate income and expenses. This is useful when showing financial information to individuals who only need or want to see the end result. The single-step income statement is short and to the point. It is also less time consuming to prepare and more easily understood. The major drawback of the single-step income statement is the lack of information especially when creditors or investors are assessing a company’s financial statues. The multi-step income statement is a more detailed statement and includes details of a company’s different sources of income and expenses. This statement provides a broader assessment of a company’s financial statues to creditors and investors. It is, however, more time consuming to prepare the multi-step statement or fix a mistake on it. Analyze the gross profit, operating profits, and net income of both Exxon and Chevron for 2012 and 2013. Of the two companies, speculate on the main reasons why one company may have been more profitable than the other company.
Exxon
Exxon Mobil Corp., Net Profit Margin
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Selected Financial Data (USD $ in millions)
Net income attributable to ExxonMobil
32,580
44,880
41,060
Sales and other operating revenue
420,836
453,123
467,029
Ratio
Net profit margin
7.74%
9.90%
8.79%
Benchmarks
Net Profit Margin, Competitors
BP PLC
6.19%
3.08%
6.84%
Chevron Corp.
9.73%
11.35%
11.01%
ConocoPhillips
16.83%
14.54%
5.08%
Royal Dutch Shell PLC
3.63%
5.69%
6.58%
Net Profit Margin, Sector
Integrated Oil & Gas
6.75%
7.43%
7.60%
Net Profit Margin, Industry
Oil & Gas
6.92%
7.39%
Leanna Rigney
ACC 303
Benson Kariuki-Mwangi
Strayer University
02-28-2015
Exxon versus Chevron
Compare and contrast the limitations and usefulness of the single-step income statement and the multi-step income statement. The single-step income statement shows a company’s net profit or net loss in a single mathematical equation. This statement does not separate income and expenses. This is useful when showing financial information to individuals who only need or want to see the end result. The single-step income statement is short and to the point. It is also less time consuming to prepare and more easily understood. The major drawback of the single-step income statement is the lack of information especially when creditors or investors are assessing a company’s financial statues. The multi-step income statement is a more detailed statement and includes details of a company’s different sources of income and expenses. This statement provides a broader assessment of a company’s financial statues to creditors and investors. It is, however, more time consuming to prepare the multi-step statement or fix a mistake on it. Analyze the gross profit, operating profits, and net income of both Exxon and Chevron for 2012 and 2013. Of the two companies, speculate on the main reasons why one company may have been more profitable than the other company.
Exxon
Exxon Mobil Corp., Net Profit Margin
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Selected Financial Data (USD $ in millions)
Net income attributable to ExxonMobil
32,580
44,880
41,060
Sales and other operating revenue
420,836
453,123
467,029
Ratio
Net profit margin
7.74%
9.90%
8.79%
Benchmarks
Net Profit Margin, Competitors
BP PLC
6.19%
3.08%
6.84%
Chevron Corp.
9.73%
11.35%
11.01%
ConocoPhillips
16.83%
14.54%
5.08%
Royal Dutch Shell PLC
3.63%
5.69%
6.58%
Net Profit Margin, Sector
Integrated Oil & Gas
6.75%
7.43%
7.60%
Net Profit Margin, Industry
Oil & Gas
6.92%
7.39%