IN BP PLC
Financial Statement Analysis
Current Performance 2006
Ratio Analysis 2001 – 2005
Return on Ordinary Shareholders Funds 11
Return on Capital Employed
Net Profit Margin
Gross Profit Margin
Average Stock Turnover Period
Average Settlement Period for Debtors / Receivables
Average Settlement Period for Creditors / Payables
Sales Revenue to Capital Employed Ratio
Sales per Employee
Acid Test Ratio
Interest Cover Ratio
Dividend Payout Ratio
Earnings per Share
Price / Earning Ratio
Appendix 1 – BP Financial Statements
Appendix 2 – BP Ratio Calculations
Appendix 3 – BP Financial Statements Additional Breakdown
Appendix 4 – Shell Financial Statements
Appendix 5 – Shell Ratio Calculations
Appendix 6 – BP AGM Apr 06 Presentation
It is the intention of this report to encourage you the reader and prospective investor to engage with BP and realise the investment potential it can offer.
In order to make an accurate and conversant decision we have provisioned you with all the relevant documentation and reports that are required to a make a decision of this nature.
Contained within this report is a snapshot of how the company has performed over the last five years. We will show you how the Company has grown by utilising the profit figures over the previous five years. There is also information about BP’s current performance in 2006. A brief background on how the BP was formed and its initial capability are also contained within the report.
The main context of the report is the financial ratios these are based on previous years figures from 2001 – 2005. In this section of the report you will be able to understand the relationship between the ratios and why they have been included. Also within this segment we have made a comparison to a similar company within that same industry, Shell. It will show how much of a better performer BP has been within this section.
Finally conclusions have been drawn on the information provided and then recommendations have been included for your ease of reading.
BP is one of Britain's biggest companies and one of the world's largest oil and petrochemicals groups. |Financial Snapshot | | |31 December 2005 |31 December 2004 |31 December 2003 | |Turnover or Gross Income |249,465m USD |199,876m USD |232,571m USD | |Net Income |22,341m USD |17,075m USD |10,482m USD | |Total Assets |206,914m USD |194,630m USD |170,662m USD | |Shareholder Funds |79,976m USD |76,892m USD |70,595m USD | |Adjusted EPS |1.01 USD |0.77 USD |0.53 USD | |Number of Employees |102,700 USD |104,200 USD |108,150 USD |
‘This graph is indicated to meet legislative requirement and shows the growth in the value of a hypothetical £100 holding in BP p.l.c ordinary shares over five years relative to the...
References: BP plc ‘Making energy more Annual Review’ (2005) http://www.bp.com/liveassets/bp_internet/annual_review/annual_review_2005/STAGING/local_assets/downloads_pdfs/b/bp_ara_2005_annual_review.pdf (accessed 21 November 2006).
BP plc ‘Making energy more Annual Review’ (2005) ‘BP Group Balance Sheet’ http://www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/downloads/F/FOI_2001_2005_group_balance_sheet.xls (accessed 24 November 2006).
BP plc ‘Annual Review’ (2005) ‘BP Working Capital’ http://www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/downloads/F/FOI_2001_2005_working_capital.xls (accessed 24 November 2006).
BP plc ‘ Annual General Meeting AGM’ (2006) http://www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/downloads/I/IC_AGM_2006_presentation_slides.pdf (accessed 01 December 2006).
Shell ‘Financial Statements’ (2005) http://www.shell.com/html/investor-en/reports2005/faoi/finstate/constate_income.html (accessed 21 November 2006).
Financial Times (2006) ‘BP signs Artic oil finds deal’ https://registration.ft.com/registration/barrier?referer=http://www.ft.com/companies/energy&location=http%3A//www.ft.com/cms/s/7b920a76-80e1-11db-9096-0000779e2340.html (accessed 04 December 2006).
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