Imperial Oil Financial Analysis 2018 - 2019

Question - **Based on your analysis (using SWOT) would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.

All calculations are complete and provided below- only Recommendation and Conclusion is required

Imperial Oil Common-size Consolidated balance sheet - Horizontal Analysis (in millions)

At December 31, 2019	2019	2018	2019	2018	YOY Trend i.e. Previous Year
Revenues	34, 002	34, 964	99.71%	99.62%	0.09%
Investment and other income	99	135	0.29%	0.38%	(0.09%)
Total revenues and other income	34, 101	35, 099	100 .00%	100.00%	0.00%
Expenses
Exploration	47	19	0.14%	0.05%	0.08%
Purchases of crude oil and products	20, 946	21, 541	61.42%	61.37%	0.05%
Production and manufacturing	6,520	6, 121	19.12%	17.44%	1.68%
Selling and general	900	908	2.64%	2.59%	0.05%
Federal excise tax and fuel charge	1,808	1,667	5.30%	4.75%	0.55%
Depreciation and depletion	1,598	1.555	4.69%	4.43%	0.26%
Non-service pension and postretirement benefit	143	107	0.42%	0.30%	0.11%
Financing	93	108	0.27%	0.31%	(0.03%)
Total expenses	32, 055	32, 026	94.00%	91.24%	2.76%
Income loss before income taxes	2, 046	3, 073	6.00%	8.76%	(2.76%)
Income taxes	(154)	759	(0.45%)	2.16%	(1.71%)
Net income (loss)	2, 200	2, 314	6.45%	6.59%	(0.14%)

Ratios

Ratios	2019	2018
Current ratio	1.38	1.35
Quick ratio	0.96	0.89
Debt to equity ratio	0.74	0.69
Asset turnover ratio	0.82	0.84
Times interest earned	22	28.43
Return on assets	5.21	5.58
Return on equity	9.06	9.45