Running head: FINANCIAL RATIO ANALYSIS 1
Financial Ratio Analysis
FIN/571
March 11, 2019
Bryan Carey
FINANCIAL RATIO ANALYSIS 2
Financial Ratio Analysis
A ratio analysis is a technique that expresses the relationship among selected items of
financial statement data. Ratio analyses assesses different elements of an organizations financial
and operating performance such as its profitability, solvency, liquidity, efficiency, market value,
and asset management (Ross, et al., 2016). Financial ratios are a means to preliminarily evaluate
the financial health of a company prior to doing an in-depth analysis of their financial statements.
For this paper, the financial statements for Exxon Mobil were reviewed from their 2015
annual report that was filed with the Securities Exchange Commission (SEC). The statements
were used to analyze their financial health by calculating their financial ratios. The ratios to be
discussed include Current Ratio, Quick Ratio, Debt-Equity Ratio, Inventory Turnover Ratio,
Receivables Turnover Ratio, Total Assets Turnover Ratio, Profit Margin (Net Margin) Ratio, and
