FIN 370 Week 2 Industry Averages and Financial Ratios Paper Final Draft 
Industry Averages and Financial Ratios Paper
Connie Addison, Christine Crocker, Kimberly Guy, Felicia Lombard, and Shavelle Woods
FIN 370
January 12, 2015
Shamelda Pete
Industry Averages and Financial Ratios
Industry averages and financial ratio reports determine the financial health of an organization. Solvent, efficiency, and profitability are compared by key financial indicators and ratios that measure several companies within the same industry. The publicly traded company chosen by Team A is ExxonMobil. “The largest publicly traded international oil and gas company in the world. ExxonMobil makes products that drive modern transportation, power cities, lubricate industry, and provide petrochemical building blocks that lead to thousands of consumer goods” (ExxonMobil, 2013-2015). In this paper, Team A will analyze the industry statics and financial ratios of ExxonMobil. Critically adopt lean principles to create a more efficient system. Discuss what a Just-In-Time inventory system would have if adopted. Compare the ratios for ExxonMobil with the appropriate industry ratios shown in the D&B Report.
SIC Code of Classification
The Standard Classification Code (SIC) was created in 1937 as four digit codes the government assigns to all U.S. companies to help identify the primary establishment. “These codes were developed to promote the presentation, collection, and analysis of data.” It also helps “simplify comparability and uniformity of the collection of statistical data, which are done by federal government agencies, private organizations, and state agencies”. Each SIC that is assigned has a meaning. “The SIC system arrays the economy into 11 divisions, that are divided into 83 2-digit major groups, that are further subdivided into 416 3-digit industry groups, and finally disaggregated into 1,005 4-digit industries.” The primary SIC code is determined by the highest revenue department within the company that prior year (Siccode.com, 2015). The SIC for
Connie Addison, Christine Crocker, Kimberly Guy, Felicia Lombard, and Shavelle Woods
FIN 370
January 12, 2015
Shamelda Pete
Industry Averages and Financial Ratios
Industry averages and financial ratio reports determine the financial health of an organization. Solvent, efficiency, and profitability are compared by key financial indicators and ratios that measure several companies within the same industry. The publicly traded company chosen by Team A is ExxonMobil. “The largest publicly traded international oil and gas company in the world. ExxonMobil makes products that drive modern transportation, power cities, lubricate industry, and provide petrochemical building blocks that lead to thousands of consumer goods” (ExxonMobil, 2013-2015). In this paper, Team A will analyze the industry statics and financial ratios of ExxonMobil. Critically adopt lean principles to create a more efficient system. Discuss what a Just-In-Time inventory system would have if adopted. Compare the ratios for ExxonMobil with the appropriate industry ratios shown in the D&B Report.
SIC Code of Classification
The Standard Classification Code (SIC) was created in 1937 as four digit codes the government assigns to all U.S. companies to help identify the primary establishment. “These codes were developed to promote the presentation, collection, and analysis of data.” It also helps “simplify comparability and uniformity of the collection of statistical data, which are done by federal government agencies, private organizations, and state agencies”. Each SIC that is assigned has a meaning. “The SIC system arrays the economy into 11 divisions, that are divided into 83 2-digit major groups, that are further subdivided into 416 3-digit industry groups, and finally disaggregated into 1,005 4-digit industries.” The primary SIC code is determined by the highest revenue department within the company that prior year (Siccode.com, 2015). The SIC for
References: Business Dictionary. (2015). Financial Ratios. Retrieved from http://www.businessdictionary.com/definition/financial-ratios.html Creditmanagementworld.com. (2006-2015). Business Financial Analysis Using Ratios. Retrieved from http://www.creditmanagementworld.com/analysis/analysis04.html Dun & Bradstreet. (n.d.). Key Business Ratios. Retrieved from http://www.mergentkbr.com.ezproxy.apollolibrary.com/index.php/reports/industry ExxonMobil. (2013-2015). About Us. Retrieved from http://corporate.exxonmobil.com/en/company/about- us/history/overview Farlex. (2013-2015). Solvency Ratios. Retrieved from http://financial-dictionary.thefreedictionary.com/Solvency+Ratio Google Finance. (2015). ExxonMobil Corporation: Annual Financial Statements. Retrieved from https://www.google.com/finance?q=NYSE:XOM&fstype=ii Investopedia. (2015). Efficiency Ratios. Retrieved from http://www.investopedia.com/terms/e/efficiencyratio.asp Stock Analysis on Net. (2015). Retrieved from http://www.stock-analysis-on.net/NYSE/Company/Exxon-Mobil-Corp/Analysis/Inventory U. S. Department of Labor. (n. d.). 2911 Petroleum Refining. Retrieved from https://www.osha.gov/pls/imis/sic_manual.display?id=627&tab=description Worldwide Business Dictionary. (2015). What is a SIC Code?. Retrieved from http://siccode.com/en/pages/what-is-a-sic-code