Ratios for Shell Royal Dutch Year

No. Crt. Ratios Formula 2018

1. Liquidity Ratios
1.1. Current ratios current assets/current liabilities 1.253
1.2. Quick ratios current assets- inventory/current liabilities 0.981
1.3. Cash ratios cash/ current liabilities 0.344
Working capital to
1.4. net working capital/total assets 0.049
total assets ratio
2. Profitability Ratios
2.1. Net profit margin net profit/ sales 0.062
2.2. Gross profit margin gross profit/sales 0.231
Operating profit
2.3. margin operating profit/sales 0.101
2.4. EBIT margin EBIT/sales 0.102
2.5. EBITDA margin EBITDA/sales 0.159
2.6. ROA net profit/avg total assets 0.059
2.7. ROE net profit/ avg equity 0.119
2.8. ROCE EBIT/ capital employed 0.099
3. Levrage Ratios
Total liabilities to total
3.1. assets ratio total liabilities/ total assets 0.493
3.2. Debts to assets ratio debt/total assets 0.391
3.3. Debts to equity ratio debt/total equity 0.379
3.4. Debts to capital debt/capital empolyed 0.192
empoyed ratios
3.5. Long term debt ratio long term debt/ long term debt + equity 0.370
Times interest earned
3.6. ratio EBIT/interest 10.599
Total assets to equity total assets/equity 1.971
ratio
4. Activity measures
4.1. Inventory turnover cost of sales/ avg inventory 12.883
4.2. Accounts receivable sales/ avg accounts receivable 8.929
turnover
Accounts payable
4.3. cost of sales/ avg acc payable 5.952
turnover
Working capital
4.4. sales/ fix assets 1.740
turnover
4.5. Total assets turnover sales/total assets 1.975
5. Market Value Ratios
number of ordinary shares * market share
5.1. Capitalization price 310,888,836
Earning per share
5.2. (EPS) earning avaible to common stockholders 7,795.600
Price earning ratios
5.3. current share price / EPS 0.003
(P/E ratios)
Market to book value
5.4. capitalization/ equity 1,534.996
ratiosto
Price (MBV)
sales ratios
5.5. current share price/ sales per share 0.540
(P/S)
 CORPORATE FINANCE
Year Draft
2019 2020
Other Formulas:
1.164 1.226 net working capital= current assets - current liabilities
0.740 0.963 2018 2019 2020
0.227 0.430 19669 13065 16744
0.032 0.044 Operating profit= Gross Profit - Operating Expenses
2018 2019 2020
0.048 (0.119) 39366 30175 -22878
0.275 0.326
0.087 (0.127) Gross Profit= total revenue- cost of goods
0.084 (0.145) 2018 2019 2020
0.168 0.146 89874 94848 58836
0.041 (0.055) EBIT= net profit + interest + taxes
0.084 (0.123) 2018 2019 2020
0.072 (0.069) 39692 29110 -26098
EBITDA= EBIT+ depreciation + amortisation
0.511 0.582 2018 2019 2020
0.451 0.489 61827 57811 26346
0.506 0.681
0.238 0.285 Capital employed= debt+ equity
0.413 0.481 avg asseets= assets(n)+assets(n-1)/2
6.207 (6.382) 2018 2019 2020
2.123 2.392 403145.5 401780 391809

11.066 5.592 avg capital= equity(n)+equity(n-1)/2

8.035 4.687 2018 2019 2020
5.098 2.678 200173 196498.5 174500
1.447 0.856
1.613 0.818 debts
2018 2019 2020
288,757,643 287,086,765 76824 96424 108014
8,058.300 8,282.800
0.003 0.002 interest expense
1,516.083 1,810.850 2018 2019 2020
0.640 0.740 3745 4690 4089

cost of sales= beginning of inventory + purchases - end

2018 2019 2020
298505 250029 121707

avg inventory
2018 2019 2020
23170 22594 21764
avg accounts recevable
2018 2019 2020
43498 42922.5 38519.5

avg acc payable

2018 2019 2020
50149 49048 45442.5

current share price

2018 2019 2020
25.66 26.17 14.61
ormulas:
nt assets - current liabilities

rofit - Operating Expenses Operating Expenses= administrative + R&D

2018 2019 2020
12346 11455 10788

ost of goods

n + amortisation

of inventory + purchases - ending of inventory

 Weighted Average Cost Of Capital

1. Cost of equity
I calculated cost of capital by using the Dividend Growth Method

P0=D0 * (1+g)/ Re - g= D1/Re - g

D0- the dividend just paid

2020 0.9565
2019 1.88
2018 1.88

g- growth dividend rate

2020 5.60% source: https://seekingalpha.com/symbol/RDS.A/dividends/dividend-growth
2019 6.89%
2018 7.42%

D1- next period's projected dividend

2020 1.010064
2019 2.009532
2018 2.019496

P0- price per share

2020 17.93
2019 29.39
2018 29.36

Re= D1/P0 + g cost of capital

2020 11.23%
2019 13.73%
2018 14.30%

2. Cost of debt
cost of debt= total interest expense/ total book of value debt

Interest Expense
2020 4089
2019 4690
2019 3745

Debt
2020 108014
2019 96424
 2018 76824

Rd-return of debt cost of debt

2020 3.7856204
2019 4.8639343
2018 4.8747787

3. WACC

WACC= ((equity/ equity + debt)* re)+ ((debt/ equity+debt) * rd (1-t))

t-average tax rate 33% equity

2020 29% 2020 158537
2019 33% 2019 190463
2018 37% 2018 202534

WACC
2020 1.6654347
2019 2.2546627
2018 2.3302122
Consolidated Balance Sheet

Dec 31,
2020
Assets
Non-current assets
Intangible assets 22,822
Property, plant and equipment 210,847
Joint ventures and associates 22,451
Investments in securities 3,222
Deferred tax 16,311
Retirement benefits 2,474
Trade and other receivables 7,641
Derivative financial instruments 2,805
288,573
Current assets
Inventories 19,457
Trade and other receivables 33,625
Derivative financial instruments 5,783
Cash and cash equivalents 31,830
90,695
Total assets 379,268
Liabilities
Non-current liabilities
Debt 91,115
Trade and other payables 2,304
Derivative financial instruments 420
Deferred tax 10,463
Retirement benefits 15,168
Decommissioning and other provisions 27,310
146,780
Current liabilities
Debt 16,899
Trade and other payables 41,677
Derivative financial instruments 5,308
Taxes payable 6,006
Retirement benefits 437
Decommissioning and other provisions 3,624
73,951
Total liabilities 220,731
Equity
Share capital 651
Shares held in trust -709
Other reserves 12,752
Retained earnings 142,616
Equity attributable to Royal Dutch Shell plc shareholders 155,310
Non-controlling interest 3,227
Total equity 158,537
Total liabilities and equity 379,268
 $ million
Dec 31, Dec 31,
2019 2018

23,486 23,586
238,349 223,175
22,808 25,329
2,989 3,074
10,524 12,097
4,717 6,051
8,085 7,826
689 574
311,647 301,712

24,071 21,117
43,414 42,431
7,149 7,193
18,055 26,741
92,689 97,482
404,336 399,194

81,360 66,690
2,342 2,735
1,209 1,399
14,522 14,837
13,017 11,653
21,799 21,533
134,249 118,847

15,064 10,134
49,208 48,888
5,429 7,184
6,693 7,497
419 451
2,811 3,659
79,624 77,813
213,873 196,660

657 685
-1,063 -1,260
14,451 16,615
172,431 182,606
186,476 198,646
3,987 3,888
190,463 202,534
404,336 399,194
Consolidated Statement of Income

2020 2019
Revenue 180,543 344,877
Share of profit of joint ventures and associates 1,783 3,604
Interest and other income 869 3,625
Total revenue and other income 183,195 352,106
Purchases 117,093 252,983
Production and manufacturing expenses 24,001 26,438
Selling, distribution and administrative expenses 9,881 10,493
Research and development 907 962
Exploration 1,747 2,354
Depreciation, depletion and amortisation 52,444 28,701
Interest expense 4,089 4,690
Total expenditure 210,162 326,621
(Loss)/income before taxation -26,967 25,485
Taxation (credit)/charge -5,433 9,053
(Loss)/income for the period -21,534 16,432
Income attributable to non-controlling interest 146 590
(Loss)/income attributable to Royal Dutch Shell plc shareholders -21,680 15,842
Basic earnings per share ($) -2.78 1.97
Diluted earnings per share ($) -2.78 1.95
$ million
2018
388,379
4,106
4,071
396,556
294,399
26,970
11,360
986
1,340
22,135
3,745
360,935
35,621
11,715
23,906
554
23,352
2.82
2.8
Consolidated Statement of Cash Flows

2020 2019
(Loss)/income before taxation for the period -26,967 25,485
Adjustment for:
Interest expense (net) 3,316 3,705
Depreciation, depletion and amortisation 52,444 28,701
Exploration well write-offs 815 1,218
Net gains on sale and revaluation of non-current assets and businesses -286 -2,519
Share of profit of joint ventures and associates -1,783 -3,604
Dividends received from joint ventures and associates 2,591 4,139
Decrease/(increase) in inventories 4,477 -2,635
Decrease/(increase) in current receivables 9,625 -921
Decrease in current payables -9,494 -1,223
Derivative financial instruments 977 -1,484
Retirement benefits 568 -365
Decommissioning and other provisions 1,104 -686
Other 8 -28
Tax paid -3,290 -7,605
Cash flow from operating activities 34,105 42,178
Capital expenditure -16,585 -22,971
Investments in joint ventures and associates -1,024 -743
Investment in equity securities -218 -205
Proceeds from sale of property, plant and equipment and businesses 2,489 4,803
Proceeds from sale of joint ventures and associates 1,240 2,599
Proceeds from sale of equity securities 281 469
Interest received 532 911
Other investing cash inflows 3,239 2,921
Other investing cash outflows -3,232 -3,563
Cash flow from investing activities -13,278 -15,779
Net decrease in debt with maturity period within three months -63 -308
Other debt:
New borrowings 23,033 11,185
Repayments -17,385 -14,292
Interest paid -4,105 -4,649
Derivative financial instruments [A] 1,157 -48
Change in non-controlling interest -42 —
Cash dividends paid to:
Royal Dutch Shell plc shareholders -7,424 -15,198
Non-controlling interest -311 -537
Repurchases of shares -1,702 -10,188
Shares held in trust: net purchases and dividends received -382 -1,174
Cash flow from financing activities -7,224 -35,209
Currency translation differences relating to cash and cash equivalents 172 124
Increase/(decrease) in cash and cash equivalents 13,775 -8,686
Cash and cash equivalents at beginning of year 18,055 26,741
Cash and cash equivalents at end of year 31,830 18,055
$ million
2018
35,621

2,878
22,135
449
-3,265
-4,106
4,903
2,823
1,955
-1,336
799
390
-1,754
1,264
-9,671
53,085
-23,011
-880
-187
4,366
1,594
4,505
823
1,373
-2,242
-13,659
-396

3,977
-11,912
-3,574

678

-15,675
-584
-3,947
-1,115
-32,548
-449
 6,429
20,312
26,741