Question

CONSOLIDATED BALANCE SHEET Note Reference Number Dec. 31 Dec. 31 2018 (millions of dollars) 2017 3,042 24,701 3,177 25,597 Assets Current assets Cash and cash equivalents Notes and accounts receivable, less estimated doubtful amounts Inventories Crude oil, products and merchandise Materials and supplies Other current assets Total current assets Investments, advances and long-term receivables Property, plant and equipment, at cost, less accumulated depreciation and depletion Other assets, including intangibles, net Total assets 14,803 4,155 1,272 47,973 40,790 12,871 4,121 1,368 47,134 39,160 247,101 10,332 346,196 252,630 9,767 348,691 Liabilities Current liabilities Notes and loans payable Accounts payable and accrued liabilities Income taxes payable Total current liabilities Long-term debt Postretirement benefits reserves Deferred income tax liabilities Long-term obligations to equity companies Other long-term obligations Total liabilities 17,258 37,268 2,612 57,138 20,538 20,272 27,244 4,382 18,094 147,668 17,930 36,796 3,045 57,771 24,406 21,132 26,893 4,774 19,215 154,191 Commitments and contingencies 15,258 421,653 (19,564) 14,656 414,540 (16,262) Equity Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) Earnings reinvested Accumulated other comprehensive income Common stock held in treasury (3,782 million shares in 2018 and 3,780 million shares in 2017) ExxonMobil share of equity Noncontrolling interests Total equity Total liabilities and equity (225,553) 191,794 6,734 198,528 346,196 (225,246) 187,688 6,812 194,500 348,691 The information in the Notes to Consolidated Financial Statements is an integral part of these statements,

I need help finding different risk ratios. Can someone please show me how to get the following in detail?

What is Exxon's...

1. receivables turnover ratio?

2. average collection period?

3. inventory turnover ratio?

4. average days in inventory?

5. current ratio?

6. acid-test ratio?

7. debt to equity ratio?

8. times interest earned ratio?

Thank you!

Answer 1

(1): Receivables turnover ratio = sales/average receivables

= 279,332/(3042+3177)/2

= 89.83

(2): Average collection period = 365 days/receivables turnover ratio = 365/89.83

= 4.06 days

(3): Inventory turnover ratio = Cost of goods sold/average inventory

= 156,172/(14803+12871+4155+4121)/2

= 8.69

(4): Average days in inventory = 365/8.69

= 42.01 days

(5): Current ratio = current assets/current liabilities

= 47973/57138

= 0.84

(6): Acid test ratio = (current assets – inventories)/current liabilities

= (47973-14803-4155)/57138

= 0.51

(7): Debt to equity ratio = Total liabilities/total equity = 147668/198528

= 0.74

(8): Times interest earned ratio = EBIT/Interest expense

= (30953+766)/766

= 41.41