Financial statement analysis of American international energy companies : case study: ExxonMobil, Chevron, and Occidental Petroleum
Takiullin, Artur (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024090924877
https://urn.fi/URN:NBN:fi:amk-2024090924877
Tiivistelmä
The purpose of the study is to analyse financial performance of ExxonMobil, Chevron, and Occidental Petroleum, three major companies in the energy sector. The objective is to determine their financial stability and investment attractiveness through a comprehensive analysis of financial ratios, including liquidity, solvency, and profitability metrics. The study aims to provide insights into the most financially stable company among the three, which could guide investment decisions.
The methodology involves horizontal and vertical analysis of the companies' financial statements over five years, complemented by ratio analysis. The data was collected from publicly available financial reports and was analysed to identify trends and key performance indicators. Theoretical frameworks, including financial analysis theories and ESG (Environmental, Social, and Governance) factors, were applied to assess the companies' performance comprehensively.
The findings revealed that Chevron demonstrated the highest financial stability, with strong liquidity, low debt levels, and high profitability. ExxonMobil also showed robust financial health though it faced challenges in liquidity and debt management. Occidental Petroleum was found to be the least financially stable, with significant debt and weaker profitability metrics. The study concludes that Chevron is the most attractive for investors seeking stable returns, while ExxonMobil presents opportunities for growth despite some financial risks. Further research is recommended to explore the impact of ESG factors on financial performance and to assess the long-term sustainability of these companies' financial strategies.
The methodology involves horizontal and vertical analysis of the companies' financial statements over five years, complemented by ratio analysis. The data was collected from publicly available financial reports and was analysed to identify trends and key performance indicators. Theoretical frameworks, including financial analysis theories and ESG (Environmental, Social, and Governance) factors, were applied to assess the companies' performance comprehensively.
The findings revealed that Chevron demonstrated the highest financial stability, with strong liquidity, low debt levels, and high profitability. ExxonMobil also showed robust financial health though it faced challenges in liquidity and debt management. Occidental Petroleum was found to be the least financially stable, with significant debt and weaker profitability metrics. The study concludes that Chevron is the most attractive for investors seeking stable returns, while ExxonMobil presents opportunities for growth despite some financial risks. Further research is recommended to explore the impact of ESG factors on financial performance and to assess the long-term sustainability of these companies' financial strategies.