An Analysis of the Financial Situation of Bp P.L.C

Research and Analysis Report An Analysis of the Financial Situation of BP P.L.C. Prepared by Yuehua Song Actual words: 4,952words Date: September 2007 content 1.0 INTRODUCTION 2 1.1 Topic Chosen 2 1.2 Reasons for Choosing the Topic 2 1.3 Aims and Objectives 3 1.3.1 Aims 3 1.3.2 Objectives 3 1.4 Sources of Information 6 1.4.1 Annual Reports and Accounts of BP 2002-2006 6 1.4.2 Annual Reports of Shell 2002-2006 7 1.4.3 Analysts’ Reports 7 1.4.4 Newspaper Commentaries 7 1.4.5 The Information Released by In-house Brokers and Financial Advisors of BP 7 1.4.6 General Background Reading 8 1.4.7 Professional Magazines and Journals 8 1.5 Methods Used for Information Collecting 8†¦show more content†¦The major features review is to identify the environment of the industry that BP is operating in by using the SLEPT analysis, Social, Legal, Economic, Political and Technological. 1.3.2.2 Financial Ratios To form an opinion on if the company is applying its assets in an efficient and profitable manner and able to meet its financial obligations, the financial ratios can be used to evaluate several aspects of operating performance and financial condition: Profitability Analysis of profitability ratios, gross profit margin (GPM) and net profit margin (NPM) help to gauge how well the company is managing its expenses. These profitability ratios give us an idea of which factors make up a company’s income and are usually expressed as a portion of each money unit of sales. Liquidity Liquidity reflects the ability of a firm to meet its short-term obligations using those assets that are most readily converted into cash. Liquidity ratios, current ratio and quick ratio, tell about the company’s ability to meet its immediate obligations. (Foster, 1986) Finance Gearing Financial gearing ratios are used to assess how much financial risk the company has taken on. Component percentages, debt-to-equity ratio and debt ratio, compare aShow MoreRelatedBp Plc And Civil Society1189 Words   |  5 Pages BP PLC and Civil Society BP p.l.c understands that society continues to have a high expectation from companies, specifically coming from media and political figures. BP p.l.c published their 2013 annual report that reads, â€Å"We are also seeing that society has ever higher expectations of business. 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