GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Exxon Mobil Corp (WBO:XOM) » Definitions » ROC %

Exxon Mobil (WBO:XOM) ROC % : 9.65% (As of Mar. 2024)


View and export this data going back to 2017. Start your Free Trial

What is Exxon Mobil ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Exxon Mobil's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 9.65%.

As of today (2024-05-28), Exxon Mobil's WACC % is 6.85%. Exxon Mobil's ROC % is 10.00% (calculated using TTM income statement data). Exxon Mobil generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Exxon Mobil ROC % Historical Data

The historical data trend for Exxon Mobil's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Exxon Mobil ROC % Chart

Exxon Mobil Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.65 -7.33 6.15 17.48 10.98

Exxon Mobil Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.41 9.89 11.64 8.79 9.65

Exxon Mobil ROC % Calculation

Exxon Mobil's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=40115.999 * ( 1 - 29.23% )/( (256834.08 + 260242.766)/ 2 )
=28390.0924923/258538.423
=10.98 %

where

Invested Capital(A: Dec. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=348399.248 - 64579.984 - ( 27980.16 - max(0, 65178.48 - 92163.664+27980.16))
=256834.08

Invested Capital(A: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=345082.689 - 56144.242 - ( 28921.263 - max(0, 59894.772 - 88590.453+28921.263))
=260242.766

Exxon Mobil's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=36498.24 * ( 1 - 30.75% )/( (260242.766 + 263826.56)/ 2 )
=25275.0312/262034.663
=9.65 %

where

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=345082.689 - 56144.242 - ( 28921.263 - max(0, 59894.772 - 88590.453+28921.263))
=260242.766

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=347684.56 - 58598.48 - ( 30654.4 - max(0, 66167.32 - 91426.84+30654.4))
=263826.56

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Exxon Mobil  (WBO:XOM) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Exxon Mobil's WACC % is 6.85%. Exxon Mobil's ROC % is 10.00% (calculated using TTM income statement data). Exxon Mobil generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Exxon Mobil ROC % Related Terms

Thank you for viewing the detailed overview of Exxon Mobil's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Exxon Mobil (WBO:XOM) Business Description

Address
5959 Las Colinas Boulevard, Irving, TX, USA, 75039-2298
ExxonMobil is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 2.4 million barrels of liquids and 8.3 billion cubic feet of natural gas per day. At the end of 2022, reserves were 17.7 billion barrels of oil equivalent, 65% of which were liquids. The company is the world's largest refiner with a total global refining capacity of 4.6 million barrels of oil per day and is one of the world's largest manufacturers of commodity and specialty chemicals.

Exxon Mobil (WBO:XOM) Headlines

From GuruFocus

Q2 2022 Exxon Mobil Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2021 Exxon Mobil Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Exxon Mobil Corp Product Solutions Spotlight Transcript

By GuruFocus Research 01-23-2024

Q3 2022 Exxon Mobil Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Exxon Mobil Corp 2022 Corporate Plan Update Transcript

By GuruFocus Research 01-23-2024

Exxon Mobil Corp Investor Day Transcript

By GuruFocus Research 01-23-2024

Q2 2020 Exxon Mobil Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Exxon Mobil Corp Investor Day Transcript

By GuruFocus Research 01-23-2024