Exxon Mobil Financial Report Research Paper Example | Topics and Well Written Essays - 1750 words

Exxon Mobil Financial Report - Research Paper ExampleThe scale in which the come with operates provides it with the advantage of supplement its size into projects considered to be too capital intensive by smaller companies. This serves to reduce the amount of competition that the company faces, in a time when much companies have joined the global gas and oil industry and are making in-roads into perennial and emerging markets (ExxonMobil, n.d.). The company is fully integrated, making it able to leverage its activities in gas and oil explorations in periods when the prices of oil are advantageous. Exxon Mobil can also focus on its downstream activities when the prices of oil are low. The ability of this organization to diversify has helped it in many ways, considering the fact that the gas and oil industry is cyclical (Elliot & Elliot. J, 2008).The organization has maintained a constant average rate of return in revenue of 7.73% from 2003 to 2012. In the year 2012, Exxon Mobil h ad its revenue at more than $482 billion, with earnings coming to $44.9 billion in the same year. The gas and oil company operates at high levels, maintaining the highest standards of safety in the industry. Evidence of this is the low number of accident incidents at the organization. In terms of returns on employed capital, Exxon Mobil is way forrad of its competitors. The company continues to reinvest in its business. Exxon Mobil has a plan to start up 31 major projects between 2012 and 2017, increasing its chances of maintaining its highly profitable status for the future.