Question

Exxon Mobile seem to use two very large segments. Do you think that gives investors a sufficient understanding of the business and its revenue sources? Why or why not?

Answer 1

Exxon Mobile has been operating on main two segments: Crude Oil and Natural Gas. It is the largest world’s publicly traded international oil company. As it’s turnover has improved to $268.90 billion, so it has become the fourth largest company in oil and gas field. The organization structure is so large that it is employing around 70000 employees.

So, it is true that the company has been working on limited segments, but those segments are it-self so large that an investor could very well has sufficient understanding of business and its revenue sources. Moreover, the limited segments would be advantageous for the investors to access the company’s business because more the segments more difficult it is to gauge the performance.

However, the company’s strength is the turnover, its employees, its year to year growth, its over a century business experience in the traded segments. That is why, the company’s share are trading at around $73 per share on Stock Exchanges.

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