Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 60

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 60
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 Other Financial Measures Disclosure of the Canadian Securities Administrators. 

Reconciliation of these non-GAAP financial measures to the most comparable GAAP measure, and other information required by these regulations, have been provided. Non-GAAP financial measures and specified financial measures are not standardized financial measures under GAAP and do not have a standardized definition. As such, these measures may not be directly comparable to measures presented by other companies, and should not be considered a substitute for GAAP financial measures.

Capital employed 

Capital employed is a non-GAAP financial measure that is a measurement of net investment. When viewed from the perspective of how capital is used by the business, it includes the company’s property, plant and equipment and other assets, less liabilities, excluding both short-term and long-term debt. When viewed from the perspective of the sources of capital employed in total for the company, it includes total debt and equity. The most directly comparable financial measure that is disclosed in the financial statements is total assets within the company’s Consolidated balance sheet. Both of these views include the company’s share of amounts applicable to equity companies, which the company believes should be included to provide a more comprehensive measurement of capital employed. 

Reconciliation of capital employed 

millions of Canadian dollars2024 2023 2022 From the Consolidated balance sheetBusiness uses: asset and liability perspectiveTotal assets42,938 41,199 43,524 Less:Total current liabilities excluding notes and loans payable(6,988)(6,482)(8,776)Total long-term liabilities excluding long-term debt(8,466)(8,363)(8,180)Add:Imperial’s share of equity company debt25 21 25 Total capital employed27,509 26,375 26,593 Total company sources: Debt and equity perspectiveNotes and loans payable19 121 122 Long-term debt3,992 4,011 4,033 Shareholders’ equity23,473 22,222 22,413 Add:Imperial’s share of equity company debt25 21 25 Total capital employed27,509 26,375 26,593 

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Return on average capital employed (ROCE) 

ROCE is a non-GAAP ratio. The company's total ROCE is net income excluding the after-tax cost of financing divided by total average capital employed (an average of the beginning and end-of-year amounts). Net income includes Imperial’s share of net income of equity companies, consistent with