Exxonmobil

Student’s Name

Course Instructor

Course Title

Date Due

Name of Company and Ticker Symbol: Exxon Mobile

10-K Report: https://cdn.exxon the company mobil.com/~/media/global/files/summary-annual-report/2017-summary-annual-report.pdf

Company Website: https://corp the company orate.exxonmobil.com/en

Value Line's Per Share Financial Data: 

Year

2016

2017

2018

Value per share

54.51

57.65

68.40

Value Line's Annual Rates of Change:

Value Line Per Share Financial Data

2012

2013

2014

Average Annual Price/Earnings Ratio

10.7

12.3

12.8

Earnings per Share

8.09

7.37

7.60

Dividends per Share

2.18

2.46

2.70

Cash Flow per Share

11.83

11.48

11.86

Value Line Annual Rates of Change

Last 10 Years

Last 5 years

Next 5 Years

Annual Rate of Change in Sales

-0.5%

-8.0%

9.0%

Annual Rate of Change in Earnings

-7.5%

-17.0%

18.0%

Annual Rate of Change in Dividends

9.0%

9.0%

3.0%

Top 5 Risks

Low prices of oil are one of the most significant problems which have been affecting the business operation of the company. The high costs of oil reduce the company's ability to widen its profit margin. Besides, reduction on reserves is another top risk of the company ("World Oil and Gas Council Names ExxonMobil 2018 Large-Cap Company of the Year and Explorer of the Year"). When prices of oil go up, the company's ability to have reserves reduces the due reduction in profit margin. In addition, shifting gears is also a more significant risk to the company because shareholders usually consider investing in large and expensive projects which takes an extended period. This can make the company shift its operation to achieve the expected goals.

Furthermore, sustainability issues are also one of the most significant problems is likely to face. Since the company deals in oil products, there is a likelihood of environmental pollution which may make the company face legal actions. Lastly, finding business opportunities in tough times is another risk the company can face during to lack of proper long term problem strategies.

Evaluation

According to the information above, the company's sales have been increasing gradually yearly. As such, it is possible the management to achieve annual goals of the company. Besides, the management should pay attention to potential risks such as sustainability cases which are likely to affect the company's business activities now and in the future.

Works Cited

"ExxonMobil Chemical Company." Crunchbase, www.crunchbase.com/organization/exxonmobil-chemical-company#section-overview.

"World Oil and Gas Council Names ExxonMobil 2018 Large-Cap Company of the Year and Explorer of the Year." ExxonMobil News Releases, news.exxonmobil.com/press-release/world-oil-and-gas-council-names-exxonmobil-2018-large-cap-company-year-and-explorer-ye.

Exxon Mobil. "2017 Summary Annual Report." cdn.exxonmobil.com/~/media/global/files/summary-annual-report/2017-summary-annual-report.pdf.