Order Number 550 Final (Edited)

BP PLC FINANCIAL ANALYSIS1
BP Plc Financial Analysis
By Student’s Name
Course
Professor’s Name
Institution
City and State
Date
Table of Contents
BP Plc Financial Analysis...................................................................................................3
Introduction......................................................................................................................3
Profitability, efficiency, and Liquidity ratios for 2020 and 2021 for BP plc.......................4
Profitability Ratios...........................................................................................................4
Return on Assets(ROA)...............................................................................................4
Return on Equity(ROE)................................................................................................5
Gross Profit Margin......................................................................................................6
Efficiency Ratios..............................................................................................................6
Asset Turnover Ratio(ATR).........................................................................................6
Inventory Turnover Ratio.............................................................................................7
Accounts Receivables Turnover Ratio (ARTR)...........................................................8
Liquidity Ratios................................................................................................................9
Current ratio.................................................................................................................9
Quick Ratio................................................................................................................10
Cash Ratio..................................................................................................................11
Debt-to-equity Ratio...................................................................................................12
BP Plc Performance Compared to Shell Plc......................................................................13
Profitability Ratio...........................................................................................................13
Return on Assets(ROA).............................................................................................13
Return on Equity(ROE)..............................................................................................13
Gross Profit Margin....................................................................................................14
Efficiency Ratios............................................................................................................15
Asset Turnover Ratio.................................................................................................15
Inventory Turnover Ratio...........................................................................................15
Receivables Turnover Ratio.......................................................................................16
Liquidity Ratios..............................................................................................................17
Current ratio...............................................................................................................17
Quick Ratio................................................................................................................18
Cash Ratio..................................................................................................................18
Debt-to-equity Ratio...................................................................................................19
Recommendations..............................................................................................................21
Increase its focus on cost management..........................................................................21
Invest more in Renewable Energy.................................................................................22
Improve the Efficiency of the Supply Chain................................................................23
Improve its Marketing and Branding Strategy...............................................................23
Strengthening its Liquidity Position..............................................................................24
References..........................................................................................................................25
BP Plc Financial Analysis
Introduction
Bp plc is an international oil and gas company headquartered in London, United Kingdom. The
company is a vertically integrated company that operates in various areas of the oil and gas
industry. These segments include exploration and production (upstream), refining, marketing,
and distribution (downstream) of oil and gas. Bp plc also operates in power generation activities
by providing renewable energy systems such as solar technology, biofuels, and wind power. The
company has over 70,000 associates in 72 countries across Europe, Africa, America, Asia-
Pacific, and the Middle East. BP plc is among the main listing on the London Stock Exchange,
and it is a constituent of the 100 indexes of the FTSE. The company’s major competitor is Shell
plc., a global oil and gas company. The two companies are competitors in the same geographic
region (Europe) and markets. Bp plc and Shell plc frequently compete against each other for
customers, resources, and market share.
Profitability, efficiency, and Liquidity ratios for 2020 and 2021 for BP plc
Profitability Ratios
Return on Assets(ROA)
ROA is a ratio that assesses the ability of a company to generate profits from the economic
resources or assets available. Investors use the ratio to comprehend how efficiently the company
utilizes its assets to make profits (Batchimeg, 2017). The higher the Return on Assets ratio, the
more productive and effectively the company's management exploits its resources. Therefore, for
BP plc, a high ROA shows that the company is using its assets well to generate profits. At the
same time, a lower ROA ratio implies that the company must manage its effects.
Net Income
Return on Assets( ROA)=
Average Total Assets
2021:
Net Income = $8,487,000,000
287,272+ 267,654
Average Total Assets = =$ 277,463,000,000
2
$ 8,487
Return on Assets ( ROA ) = =3.06 %
$ 277,463
2020:
Net Income = -$20,729,000,000
267,654+295,194
Average Total Assets = =$ 281,424,000 ,000
2
−$ 20,729,000,000
Return on Assets ( ROA ) = =−7.37 %
$ 281,424,000,00
Return on Equity(ROE)
The ROE ratio measures the ability of a company to generate profits from the money invested,
that is, the shareholder's equity. Investors use this ratio to understand the company's financial
performance in generating revenues using shareholder's equity. A high, stable, and increasing
ROE is considered to be better. Thus, for BP plc, a higher and increasing ROE would show that
the firm is utilizing equity well.

Net Income
Return on Equity (ROE)=
Average Total Equity
2021
Net Income = $8,487,000,000
90,439,000,000+85,568,000,000
Average Total Equity = =$ 88,003,500,000
2
$ 8,487,000,000
Return on Equity ( ROE )= =9.64 %
$ 88,003,500,000
2020
Net Income = -$20,729,000,000
85,568,000,000+100,708,000,000
2
−$ 20,729,000,000
Return on Equity ( ROE )= =−22.27 %
$ 93,138,000,000
Gross Profit Margin
Gross profit margin is the percentage of a company's revenues exceeding production costs or the
total sales after deducting the cost of sales (Babalola & Abiola, 2013). The ratio measures the
company's profitability and efficiency in pricing and costing goods. A high gross profit margin
for BP plc indicates that the company is good at managing costs and setting competitive prices.
Gross Profit
Gross Profit Margin=
Total Revenue
2021
Gross Profit = $71,272,000,000

Total Revenue= $164,195,000,000
$ 71,272,000,000
Gross Profit Margin= =43.41 %
$ 164,195,000,000
2020
Gross Profit = $51,39,000,000
Total Revenue= $183,500,000,000
$ 51,396,000,000
$ 183,500,000,000
Efficiency Ratios
Asset Turnover Ratio(ATR)
The ratio measures the efficiency of a company in utilizing assets to generate revenue. The Asset
Turnover ratio is crucial for understanding the company's operational efficiency. A high ATR
ratio for BP plc would imply that the company is efficient in revenue generation. In contrast, a
lower ATR ratio would indicate that it needs to utilize its assets more effectively.
Total Revenue
Asset Turnover Ratio=
2021
Total Revenues= $164,195,000,000
287,272,000,000+ 267,654,000,000
2
$ 164,195,000,000
Asset Turnover Ratio= =0.59
$ 277,463,000,000
2020
Total Revenue= Total Revenue= $183,500,000,000
267,654,000,000+ 295,194,000,000
2
$ 183,500,000,000
$ 281,424,000,000
Inventory Turnover Ratio
This is a ratio that measures the efficiency of a company in managing its inventory. A high
inventory ratio indicates that sales are doing well; however, too high a ratio suggests that the
company needs to restock inventory consistently. Therefore, a high inventory turnover ratio for
BP Plc would imply its managing inventories effectively without holding excess levels.
Cost of Goods Sold

Inventory Turnover ratio=
Average Inventory
2021
Cost of Goods Sold= $92,923,000,000
$ 16,873,000,000+$ 23,711,000,000
Average inventory=
2
$ 92,923,000,000
Inventory Turnover Ratio= =4.58×¿
$ 20,292,000,000
2020
Cost of Goods Sold=$132,104,000,000
$ 16,873,000,000+$ 20,880,000,000
Average inventory= =18,876,500,000
2
$ 132,104,000,000
$ 18,876,500,000
Accounts Receivables Turnover Ratio (ARTR)
The ratio measures how well a company manages credit given to customers by assessing the time
taken to collect outstanding debts throughout the financial year. A high Accounts Receivable
Turnover ratio for BP Plc would imply that the company is gathering payments and handling its
credit effectively. At the same time, a lower ARTR would mean that the company is not
collecting payments effectively and has poor credit risk management.
Total Revenue
Receivables Turnover Ratio=
Average Accounts Receivable
2021
Total Revenue= $164,195,000,000
$ 27,139,000,000+ $ 17,948,000,000
Average Accounts Receivable= =$ 22,543,500,000
2
$ 164,195,000,000
Receivables Turnover Ratio= =7.28×¿
$ 22,543,500,000
2020
Total Revenue= $183,500,000,000
$ 17,948,000,000+ $ 24,442,000,000
2
$ 183,500,000,000
$ 21,195,000,000
Liquidity Ratios
Current ratio
This liquidity ratio analyzes a company's ability to pay short-term debts or obligations due within
one year (Babalola & Abiola, 2013). Investors and financial analysts can use the ratio to assess
how BP plc can maximize current assets to cater to its current liabilities. Therefore, a high
current ratio for BP plc would mean the company has enough current assets to cater to its short-
term obligations. In contrast, a lower current ratio indicates inadequate assets to pay its current
liabilities.
Current Assets
Current Ratio=
Current Liabilities
2021
Current assets= $92,590,000,000
Current Liabilities= $80,287,000,000
$ 92,590,000,000
Current ratio= =1.15
$ 80,287,000,000
2020

$ 72,982 , 000,000
Current Ratio= =1.22
$ 59,799,000,000
Quick Ratio
The quick ratio is a financial metric determining how well the company pays its current
liabilities using the most liquid assets. The ratio is crucial in understanding the liquidity position
of the company. Thus, a high quick ratio for BP plc would demonstrate that they have adequate
liquid assets to cater to its short-term obligations.
(Current Assets−Inventory)
Quick Ratio=
Current Liabilities
2021
Current Assets= $72,982,000,000
Inventory= $23,711,000,000
($ 72,982, 000,000−$ 23,711,000,000)

Quick Ratio= =0.61
$ 80,287,000,000
2020
Inventory=$16,873,000,000
($ 92,590 , 000,000−$ 16,873,000,000)

Quick Ratio= =1.27
$ 59,799,000,000
Cash Ratio
This is a liquidity ratio, the company's ability to pay off its short-term liabilities using its cash
and cash equivalents. A high cash ratio for BP Plc would show that the firm has adequate cash to
pay for its short-term liabilities.
Cash∧Cash Equivalents
Cash Ratio =
Current Liabilities
2021
Cash and Cash Equivalents=$30,681,000,000
$ 30,681,000,000
Cash Ratio= =0.38
$ 80,287,000,000
2020
Current Liabilities=$59,799,000,000
$ 31,111,000,000
Cash Ratio= =0.52
$ 59,799,000,000
Debt-to-equity Ratio
The debt-to-equity ratio demonstrates how much of a firm is owned by lenders compared to the
amount of shareholder equity held within the company. The ratio is helpful for BP plc to
understand its financial risk and the extent to which it depends on debt financing. A lower debt-
to-equity ratio for the company would show that it has a conventional financing structure and
does not depend heavily on debts to fund its operations.
Total Liabilities
Debt−¿−Equity Ratio=
Total Equity
2021
Total Liabilities= $196,833,000,000
Total Equity=$90,439,000,000
$ 196,833,000,000
Debt−¿−Equity Ratio= =2.18
$ 90,439,000,000
2020
Total Equity=$85,568,000,000
$ 182,086,000,000
$ 85,568,000,000
BP Plc Performance Compared to Shell Plc
Profitability Ratio
Return on Assets(ROA)
Net Income
Return on Assets( ROA)=
2021:
Net Income = $20,630,000,000

$ 404,379,000,000+$ 379,268,000,000
2
$ 20,630,000,000
Return on Assets ( ROA ) = =5.27 %
$ 391,823,500,000
2020:
Net Income = -$ (21,534,000,000)
$ 379,268,000,000+ $ 404,336,000,000
2
−$ (21,534,000,000)
Return on Assets ( ROA ) = =−5.50 %
$ 391,802,000,000
Return on Equity(ROE)
Net Income
Return on Equity (ROE)=
Average Total Equity
2021
Net Income = $20,630,000,000
175,326 ,000,000+158,537,000,000
2
$ 20,630,000,000
Return on Equity ( ROE )= =12.36 %
$ 166,931,500,000
2020
Net Income = -$ (21,534,000,000)

158,537,000,000+190,463,000,000
2
−$ (21,534,000,000)
Return on Equity ( ROE )= =−12.34 %
$
Gross Profit Margin
Gross Profit
Gross Profit Margin=
Total Revenue
2021
Gross Profit = $97,745,000,000
Total Revenue= $272,657,000,000
$ 97,745,000,000
$ 272,657,000,000
2020
Gross Profit = $66,102,000,000
Total Revenue= $183,195,000,000
$ 66,102,000,000
$ 183,195,000,000
Efficiency Ratios
Asset Turnover Ratio
Total Revenue
Asset Turnover Ratio=
2021
$ 404,379,000,000+$ 379,268,000,000
2
$ 272,657,000,000
$ 391,823,500,000
2020
Total Revenue= $183,195,000,000
$ 379,268,000,000+ $ 404,336,000,000
2
$ 183,195,000,000
$ 391,802,000,000
Inventory Turnover Ratio
Cost of Goods Sold

Inventory Turnover ratio=
Average Inventory
2021
Cost of Goods Sold= $174,912,000,000
$ 25,258,000,000+$ 19,457,000,000
Average inventory= =$ 22,357,500,000
2
$ 174,912,000,000
$ 22,357,500,000
2020
Cost of Goods Sold=$117,093,000,000

$ 19,457,000,000+$ 24,071,000,000
Average inventory= =$ 21,764,000,000
2
$ 117,093,000,000
$ 21,764,000,000
Receivables Turnover Ratio
Total Revenue
Receivables Turnover Ratio=
Average Accounts Receivable
2021
$ 53,208,000,000+ $ 33,625,000,000
2
$ 272,657,000,000
$ 43,416,500,000
2020
Total Revenue= $183,195,000,000
$ 33,625,000,000+ $ 43,414,000,000
2
$ 183,195,000,000
$ 38,519 ,500,000
Liquidity Ratios
Current ratio
Current Assets
Current Ratio=
Current Liabilities
2021
$ 128,765,000,000
$ 95,547,000,000
2020
$ 91,954,000,000
$ 73,708,000,000
Quick Ratio
(Current Assets−Inventory)
Quick Ratio=
Current Liabilities
2021
Inventory= $73,708,000,000

($ 128,765,000,000−$ 73,708,000,000)
Quick Ratio= =0.58
$ 95,547,000,000
2020
Inventory=$19,457,000,000
($ 91,954,000,000−$ 19,457,000,000)
Quick Ratio= =0.98
$ 73,708,000,00
Cash Ratio
Cash∧Cash Equivalents
Cash Ratio =
Current Liabilities
2021
$ 30,681,000,000
Cash Ratio = =0.32
$ 95,547,000,000
2020
$ 31,830,000,000
Cash Ratio = =0.43
$ 73,708,000,000
Debt-to-equity Ratio
Total Liabilities
Debt−¿−Equity Ratio=
Total Equity
2021
Total Equity=$175,326,000,000
$ 229,053,000,000
$ 175,326,000,000
2020
Total Equity=$158,537,000,000
$ 220,731,000,000
$ 158,537,000,000
BP Plc's Return on assets ratio, 3.06% for 2020 and -7.37% in 2021, is slightly lower than that of
Shell Plc, which is -5.50% for 2020 and 5.27% for 2021. Based on these ratios, it is evident that
Shell plc's financial performance is better than BP plc's. In 2020, both companies had a negative
ROA which shows that they could not generate enough profits from their assets. The negative
ROA results from the COVID-19 pandemic, which led to a substantial decrease in demand for
oil and gas. However, the higher ratios for Shell Plc illustrate that it manages its resources more
efficiently than BP Plc hence better financial performance.
Bp Plc had an ROE of -22.27% in 2020, which improved to 9.64% in 2021. On the other hand,
Shell Plc had an ROE of -12.34% in 2020, which improved to 12.36% in 2021. The negative
ROE for BP Plc in 2020 shows that the company could not generate sufficient profits using the
capital invested by stakeholders. Nevertheless, the positive ROE in 2021 indicates an
improvement in its profitability and financial performance, thus implying that the organization's
efforts to minimize costs and emphasize creating value for the company are paying off. Despite
the negative ROE for both companies in 2020, the competitor, Shell Plc has a better financial
performance than BP plc. In 2021, BP plc showed a significant performance reducing the gap.
A high Asset Turnover Ratio shows that a company uses its assets more efficiently to generate
revenues. In 2020, BP plc had an Asset Turnover ratio of 0.65 while Shell had an Asset Turnover
Ratio of 0.46, showing that BP plc was better at generating revenues from its assets in that year
as compared to its competitor, Shell Plc. However, in the following financial year, 2021, the
Asset Turnover Ratio for BP plc reduced to 0.59. Contrariwise, the ATR for Shell Plc increased
to 0.70, indicating that BP plc reduced its efficiency in using its assets to generate revenues while
the efficiency of Shell plc increased. Therefore, Shell plc has a better financial performance.
A high current ratio indicates that a company has sufficient assets to pay its short-term
obligations. In 2020, BP plc had a current ratio of 1.22, whereas Shell Plc had a current ratio of
1.25, indicating that both had adequate current assets to cover their current liabilities. In 2021,
the current ratio for BP plc reduced to 1.15, while that of Shell Plc rose to 1.35. The reduced
current ratio for BP plc indicates that the company needed help paying its short-term liabilities
compared to 2020. Therefore, BP plc's financial health could be better regarding the current ratio
than its competitor.
A high debt-to-equity ratio shows that a company depends more on debt than equity financing. In
2020, the debt-to-equity ratio for BP Plc was 2.13, while the debt-to-equity ratio of Shell Plc was
1.39. These values indicate that BP Plc's financial risk level was higher than Plc, which had a
lower amount of debt. In 2021, the debt-to-equity ratio for BP Plc increased to 2.18. In contrast,
Shell Plc's debt-to-equity ratio reduced to 1.35. The increased ratio for BP Plc implies that the
company is more dependent on debt financing, leading to increased financial risk. On the other
hand, the reduced ratio for Shell Plc indicates that the company is more dependent on equity
financing, demonstrating its cushion against financial risks. Therefore, BP Plc is less efficient in
managing its debt than its competitor Shell Plc.
Recommendations
Increase its focus on cost management.
BP Plc should focus more on cost management to improve its financial performance. Cost
management is the process of controlling and planning the company’s costs. According to
Osadch et al. (2018), cost management is done by identifying and evaluating the overall costs
involved with the company's operations, for example, material costs, labor, and overhead
expense. The company should then take the appropriate steps in controlling these costs to
optimize the cost structure and increase its profitability, thus improving its financial
performance.
Cost management is a good tool that BP Plc can utilize to reduce its overall expenses. The
company can reduce expenses by restricting different costs, such as distribution and marketing
costs, through cost management. Focusing on cost management will also help the company to
identify and eradicate funds that may have been allocated to unnecessary operations. Moreover,
during the cost management process, BP Plc owners will restrict funds accessible at various
employee levels allowing them to have more cash for debt management. Once the company
achieves a lower debt ratio, its financial performance will improve as it can now overcome
different financial risks.
Invest more in Renewable Energy.
In recent years, the demand for renewable energy sources such as solar, wind, and biofuels has
been increasing as they are readily available, environmentally friendly, and cheaper than oil and
gas (Raybould et al., 2020). BP Plc must add more investments in those technologies to take
advantage of this increasing demand for renewable energy. Moreover, BP Plc should diversify its
portfolio and reduce its reliance on fossil fuels to reduce the risks of fluctuating oil and gas
markets. For example, the energy security concerns caused by Ukraine's invasion by Russia have
led to a dramatic increase in oil and gas prices. Therefore, investing more in renewable energy
will help the company keep up with the increasing demand, thus improving its financial
performance.
Increasing renewable energy will be an excellent strategy for the company to improve its
financial performance. BP Plc should allocate more resources to research and development of
renewable energy systems to allow it to transform and develop sustainable energy solutions that
can eventually lead to cost reductions and increased revenues in the long run. Moreover,
investing in renewable energy will help the company keep up with the emerging trends as
governments around the globe instigate policies to reduce the use of fossil fuels and encourage
renewable energy solutions (Raybould et al., 2020). Therefore, BP will position itself as a market
leader and attract investors willing to invest in such companies, increasing its financial
performance.
Improve the Efficiency of the Supply Chain
Supply chains are crucial for a company as they facilitate the movement of products from
suppliers to customers (Lee, 2021). BP Plc should improve its supply chain efficiency to
minimize operating costs while increasing its profitability. An efficient supply is essential for
enhancing the quality and ensuring customer satisfaction which will result in the company's
improved financial performance. Moreover, the higher the efficiency of the supply chain, the
higher the Return on Assets of the company and the higher the Inventory Turnover ratio,
increasing the company's financial performance.
To ensure that supply chains are efficient, BP Plc should optimize its logistics and transportation
systems to improve delivery times and reduce transport costs. The company should also enhance
the procurement procedures' efficiency to ensure lower purchasing costs of materials and reduced
lead times. Moreover, the company should restructure its inventory management to optimize
inventory levels, minimize carrying costs, and reduce stockouts. These enhancements in the
supply chain will help to improve the company’s operational efficiency as well as its overall
financial performance.
Improve its Marketing and Branding Strategy
Marketing and branding are essential strategies in any business to improve the brand's position
and create a good perception in the market. BP Plc should use various marketing channels such
as the media, campaigning, and a blend of other tactics that will help it attract more customers.
The company should use a digital marketing strategy by engaging with its customers on social
media platforms, which will help retain existing customers and reach new ones. In the long term,
this will help increase the company's sales resulting in increased profitability and improved
financial performance.
Large spending on marketing is linked with a higher brand value associated with better financial
performance. BP Plc invests more in targeted marketing campaigns which will help increase its
customers, improve its reputation, improve stakeholders and investor relationships, and drive its
long-term growth. A stronger brand image will also help attract and retain talented employees, as
companies with stronger brand reputations often appeal to them, improving employee
performance and increasing profitability. Moreover, the marketing campaigns will help reinforce
consumer perception of the quality of the company's products, leading to better financial
performance.
Strengthening its Liquidity Position
Liquidity is the ability of the company to pay for its short-term obligations. Stronger liquidity
indicates that the company has enough cash to pay any short-term debts that may arise. In
contrast, lower liquidity implies that a company needs more cash to pay those debts and may
take more debts (Kariyawasam, 2019). With more substantial liquidity, BP Plc will have a more
robust financial performance as it will change its funds to revenue and profit-generating
operations such as developing renewable energy systems. In this case, BP Plc should emphasize
maintaining a strong liquidity position by minimizing its debts and having more cash reserves.
The company should adopt practical financial policies to accomplish its goals while upholding a
strong financial risk profile. In other words, BP Plc should balance managing various financial
risks, such as liquidity and debt levels, and investing in growth opportunities. The company
should also ensure a debt-to-equity ratio consistent with the oil and gas industry and its risk
appetite to be more financially flexible. Moreover, BP Plc should consider expanding its sources
of financing by tapping into capital markets and issuing commercial paper to access liquidy in
case of unprecedented events, thus improving its financial performance.

References
Babalola, Y.A. and Abiola, F.R., 2013. Financial ratio analysis of firms: A tool for decision
making. International journal of management sciences, 1(4), pp.132-137. Retrieved from:
https://www.academia.edu/download/32371001/Paper_4.pdf
Batchimeg, B., 2017. Financial performance measurement using financial ratios: a case of
Mongolian companies. International Journal of Engineering and Management Sciences,
2(3), pp.20–32. Retrieved from: https://ojs.lib.unideb.hu/IJEMS/article/view/4900
BP Plc. 2021. Annual report and form 20-F 2020.Corporate governance Retrieved from:
https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/bp-
directors-remuneration-report-2020.pdf (Accessed: March 19, 2023).
Drake, P.P. and Fabozzi, F.J., 2012. Financial ratio analysis. Encyclopedia of Financial Models.
Retrieved fromhttps://doi.org/10.1002/9781118182635.efm0074
Kariyawasam, A.H.N., 2019. Analyzing the impact of financial ratios on a company's financial
performance. Retrieved from http://dr.lib.sjp.ac.lk/handle/123456789/11904

Lee, R. 2021. The effect of supply chain management strategy on operational and financial
performance. Sustainability, 13(9), p.5138.Retrieved from:
https://doi.org/10.3390/su13095138
Osadchy, E.A., Akhmetshin, E.M., Amirova, E.F., Bochkareva, T.N., Gazizyanova, Y. and
Yumashev, AV, 2018. A company's financial statements are an information base for
decision-making in a transforming economy. Retrieved from:
https://www.um.edu.mt/library/oar/handle/123456789/33582
Raybould, B., Cheung, W.M., Connor, C. and Butcher, R. 2020. An investigation into UK
government policy and legislation to renewable energy and greenhouse gas reduction
commitments. Clean Technologies and Environmental Policy, 22, pp.371–387. Retrieved
from: https://link.springer.com/article/10.1007/s10098-019-01786-x
Shell. (2021). Annual Report and Form 20-F 2020. Retrieved from:
https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_RDS_2021.pdf

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BP PLC FINANCIAL ANALYSIS1

BP Plc Financial Analysis

City and State

BP Plc Financial Analysis

customers, resources, and market share.

Net Income = $8,487,000,000

Net Income = -$20,729,000,000

the firm is utilizing equity well.

Net Income = $8,487,000,000

Net Income = -$20,729,000,000

Gross Profit Margin

Gross Profit = $71,272,000,000

Total Revenue= $164,195,000,000

Gross Profit = $51,39,000,000

Total Revenue= $183,500,000,000

Asset Turnover Ratio(ATR)

Total Revenues= $164,195,000,000

Total Revenue= Total Revenue= $183,500,000,000

Inventory Turnover Ratio

Cost of Goods Sold

Cost of Goods Sold= $92,923,000,000

Cost of Goods Sold=$132,104,000,000

Accounts Receivables Turnover Ratio (ARTR)

collecting payments effectively and has poor credit risk management.

Total Revenue= $164,195,000,000

Total Revenue= $183,500,000,000

Current assets= $92,590,000,000

Current Liabilities= $80,287,000,000

Current assets= $72,982,000,000

Current Liabilities= $59,799,000,000

liquid assets to cater to its short-term obligations.

Current Assets= $72,982,000,000

Current Liabilities= $80,287,000,000

($ 72,982, 000,000−$ 23,711,000,000)

Current Assets= $92,590,000,000

Current Liabilities= $59,799,000,000

($ 92,590 , 000,000−$ 16,873,000,000)

pay for its short-term liabilities.

Cash and Cash Equivalents=$30,681,000,000

Current Liabilities= $80,287,000,000

Cash and Cash Equivalents=$31,111,000,000

does not depend heavily on debts to fund its operations.

Total Liabilities= $196,833,000,000

Total Liabilities= $182,086,000,000

BP Plc Performance Compared to Shell Plc

Net Income = $20,630,000,000

Net Income = -$ (21,534,000,000)

Net Income = $20,630,000,000

Net Income = -$ (21,534,000,000)

Gross Profit Margin

Gross Profit = $97,745,000,000

Total Revenue= $272,657,000,000

Gross Profit = $66,102,000,000

Total Revenue= $183,195,000,000

Asset Turnover Ratio

Total Revenues= $272,657,000,000

Total Revenue= $183,195,000,000

Inventory Turnover Ratio

Cost of Goods Sold

Cost of Goods Sold= $174,912,000,000

Cost of Goods Sold=$117,093,000,000

Receivables Turnover Ratio

Total Revenues= $272,657,000,000

Total Revenue= $183,195,000,000