IntroductionRatio analysis is an important financial statement analysis tool. It is used to assess andevaluate the liquidity, profitability, assets management, and solvency condition of the company(Petty, Titman, Keown, & Martin, 2015).This paper aims at reviewing some liquidity, profitability, assets management andleverage ratios of Exxon Mobil Corporation for 2015 and importance of these ratios in financialdecision making. Exxon Mobil Corporation, established in 1999, is the world largestmultinational gas and oil company (Exxon Mobil Corporation, 2018). The company operates inoil and gas industry. It is a Fortune 500 company with total revenue of USD 205004 million(Fortune 500, 2018). The current market capitalization of the Exxon Mobil is USD 369.264billion (Yahoo Finance, 2018).Financial Ratios of Exxon Mobil CorporationCurrent RatioCurrent ratio measures the ability of the company to repay its short term liabilities withits current assets (Petty, Titman, Keown, & Martin, 2015). The current of the Exxon Mobil for2015 was 0.79:1. This ratio implies that Exxon Mobil can cover its total current liabilities withits total current assets by 0.79 times.Current ratio helps to assess the liquidity of the company. From the current ratio, it isunderstood whether company has enough current assets to repay its short term debts andobligations when these become due (Quiry, Fur, Salvi, Dallocchio, & Vernimmen, 2011). Fromthe understanding of the current obligations re ...
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