GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Exxon Mobil Corp (WBO:XOM) » Definitions » Altman Z-Score

Exxon Mobil (WBO:XOM) Altman Z-Score : 5.05 (As of May. 18, 2024)


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

What is Exxon Mobil Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 5.05 is strong.

Exxon Mobil has a Altman Z-Score of 5.05, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Exxon Mobil's Altman Z-Score or its related term are showing as below:

WBO:XOM' s Altman Z-Score Range Over the Past 10 Years
Min: 2.46   Med: 3.85   Max: 5.24
Current: 5.05

During the past 13 years, Exxon Mobil's highest Altman Z-Score was 5.24. The lowest was 2.46. And the median was 3.85.


Exxon Mobil Altman Z-Score Historical Data

The historical data trend for Exxon Mobil's Altman Z-Score 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 Altman Z-Score Chart

Exxon Mobil Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.56 2.46 3.71 5.14 4.60

Exxon Mobil Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Altman Z-Score 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 5.24 5.13 4.96 4.60 4.76

Competitive Comparison of Exxon Mobil's Altman Z-Score

For the Oil & Gas Integrated subindustry, Exxon Mobil's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Exxon Mobil's Altman Z-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Exxon Mobil's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Exxon Mobil's Altman Z-Score falls into.



Exxon Mobil Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Exxon Mobil's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0727+1.4*1.2128+3.3*0.131+0.6*3.256+1.0*0.8814
=5.05

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2024:
Total Assets was €347,685 Mil.
Total Current Assets was €91,427 Mil.
Total Current Liabilities was €66,167 Mil.
Retained Earnings was €421,672 Mil.
Pre-Tax Income was 11379.48 + 9743.125 + 12835.963 + 10758.488 = €44,717 Mil.
Interest Expense was -203.32 + -249.424 + -158.353 + -229.827 = €-841 Mil.
Revenue was 73978.12 + 74907.896 + 82990.09 + 74573.785 = €306,450 Mil.
Market Cap (Today) was €493,859 Mil.
Total Liabilities was €151,677 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(91426.84 - 66167.32)/347684.56
=0.0727

X2=Retained Earnings/Total Assets
=421671.88/347684.56
=1.2128

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(44717.056 - -840.924)/347684.56
=0.131

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=493858.897/151676.72
=3.256

X5=Revenue/Total Assets
=306449.891/347684.56
=0.8814

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Exxon Mobil has a Altman Z-Score of 5.05 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Exxon Mobil  (WBO:XOM) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Exxon Mobil Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Exxon Mobil's Altman Z-Score 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

Q1 2020 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

Q1 2022 Exxon Mobil Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Exxon Mobil Corp Investor Day Transcript

By GuruFocus Research 01-23-2024

Exxon Mobil Corp Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024

Q2 2021 Exxon Mobil Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2020 Exxon Mobil Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024