Analysis Of Exxonmobil And British Assessment Answers

Describe about the Financial Statement Analysis of ExxonMobil and British Petroleum?

Answer:

Introduction

British petroleum is an oil and gas providing company which is mainly supplies of fuel their clients and customers for transportation activities, light producing energy supplies and lubricant products which is required for the vehicle’s engine and different products which is used by the consumer’s petrochemical products which is mainly used in the preparation of paints and clothes facilities for other products. Exxon Mobil Corporation is exploring their business activities in the country U.S for the production and distribution activities of the oil and natural gases. The company is mainly deal in the products like petrochemical, aromatics and the other products which is directly related to the petrochemical products and industry. The project is all about the understanding the financial status of the company in the market during the financial period of 2013 and 2014 (Horngren and Rajan, 2012).

The critical analysis of the companies Exxon Mobil and British Petroleum which are mainly described the financial situation of the company in the market and the non financial analysis which is mainly described the investment decision and the other strategies of the companies with the support several organizational sources within given period of time. The situation of the different analysis which is related to the several activities of the company is mainly depends upon the companies are having certain rules and policies according to which is the income statements of the organization which is support in measuring the performance of the company within a given period of time (Horngren and Oliver, 2012). The study is all about the investments activities in the energy proving company. The companies are providing products and services in the petrochemical and energy sector which will provide better financial position of the organization in the different scenarios of the company during performing in the market.

Critical Analysis

The critical analysis of the company will be analyzed by the company within a given period of time by the reviewing the financial statement analysis of the companies Exxon Mobil and British petroleum. The ratio analysis will be better analyzing the financial and performance status of this organization (Gibson, 2012).

Profitability Ratio

Profitability ratios of any organization which is support to analysis of the measuring the capabilities of the organizations in the revenue generation activities of the companies within a particular given period of time. Here the overall profitability analysis of the companies Exxon Mobil and British Petroleum within financial period of 2013 and 2014 (Garrison and Brewer, 2012).

Liquidity Ratio

Liquidity ratios of the company are mainly support in calculating the financial liquidity analysis of the company within a provided period of time. Liquidity ratios define the short term financial status of the company for settle down their financial obligations within a certain period of time. The liquidity ratio of the companies Exxon Mobil and British Petroleum will be identified by the calculation of current and liquidity ratios of these companies (Follett, 2012).

Solvency Ratio

The solvency ratios are mainly help in the making payment for the organization within long term period of time to their creditors and financial institutions. The debt and equity ratios of the companies will easily define the financial status of the company in terms of the paying their long terms obligations (Edwards and Boyns, 2012).

 Non Financial Analysis

Balance scorecard

According to the non financial scenario analysis of the petrochemical company Exxon Mobil is mainly considering as a global based petrochemical company which is mainly giving impact on the global market price changes of the oil and gases which is depends upon the different factors of the getting impact demand and the supply of the company’s products which is manufactured by the representative company.

• Financial perspective
• Customers perspective
• Internal process perspective
• Learning and growth perspective

During the economic activities like recession and the inflation periods of time the growth of the companies will be negatively sloping and the overall direct impact of the company operational activities (Moeschler, 2012).

The demand and supply of the products of the different companies are positively sloping as per the expectations of market investors. The prices of the goods which is supplied by the company is mainly based on the several factors which are several factors like changes in population growth, exchange rate of the currency and fluctuations (Petersen and Plenborg, 2012). There are various factors which is mainly depends upon the risk factors of the different kind of assets which is acquired by the company and capabilities of the Exxon Mobil for giving financial satisfaction to their stakeholders. The several factors which is depends upon legal obligations of the company Exxon Mobil and the barriers which providing several activities of the company within a given period of time period for the company.

Exxon Mobil are also facing huge problem in the legalization of the government for the petrochemical industry in U.S. The company British petroleum is mainly related to the several activities which is depends upon the certain activity which directly and indirectly indicated by the organization for the controlling the different hazards in the material supplied by the company within a given period of time. As per the overall performance of the company the business activities of the British Petroleum is losing the figures of the different containment figures of the company (Ratnatunga and Balachandran, 2012).

The key performance indicators of the company which is depends upon the strategies and the other scenarios of the organization which is totally depends upon the Non financial activities of both the companies. The companies are mainly supporting the overall activities of the company which is mainly based on the financial performance of the companies. The business strategies of the both the companies Exxon Mobil and British petroleum are growing as per their non financial activities of the company which is highly growing in the market all around the world.

Conclusion

The overall project is describing the financial and strategic performance of the company within given period 2013 and 2014. The companies Exxon Mobil Corporation and British Petroleum are performing well in the market with the products of petrochemical products which is showing as per the critical analysis that company is declining in maintaining the financial status of the organization in 2014 which is lower than the financial year 2013. The overall performances of both the companies are mainly better as per the analysis of the overall analysis of the company profile and financial scenarios.

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