Exxon Mobile Example

Exxon Mobil has a majority of tangible assets. Tangible can be defined as things that can be perceived by the senses, and especially anything that can be physically touched. Tangible may mean touchable, actual, or real. Tangible assets are those holdings of an individual or business that are real and actual, instead of being hypothetical. They are contrasted to things an individual or business may hold that are not tangible. Examples of intangible assets include things like copyrighted ideas, patents, or intellectual property.

Though these things possibly have a chance of being financially beneficial at a future point, they are not currently something that can be sold for great profit in most cases. This being said I believe that Exxon has a majority of tangible assets. It’s major portion being listed under property, plant and equipment on its balance sheets. Although I believe the liquidity of Exxon’s assets is only at about 25% of its total assets. It may take a while for Exxon to sell off its major assets if it needed liquid funds.

The annual reports from 2007 and 2008 show a Net Income for Exxon of $40,610,000 (2007) and $45,220,000 (2008). Change in NI is positive 11% or $4,610,000 annually from 2007 to 2008. Cash flows for the same period showed an overall negative move down $2544000 or 7%, the cause from the cash flow statement would be from investment activities which unfortunately in 2008 may have taken a hit from the recession. The cash flow statement is broken out in three categories operating activities which would be activities from normal daily operations of Exxon.

Investing activities, this would include cash inflow and outflow from investments in fixed assets or marketable securities. Finally, financing activities which include inflows and outflows of cash from all long term and short term debt and dividends due. Over the past two years Exxon’s stock price has dropped considerably. This would be from the impact of the global recession that began in 2008. All of the stock market was affected by this.