Azerbaijan state economics university

AZERBAIJAN STATE ECONOMICS UNIVERSITY


Faculty - UNEC BUSINESS SCHOOL
Specialization - ENGINEERING AND MANAGEMENT RISKS
Course - I
Group - E12-23
Student - Madina Mammadova
Teacher – Nisa Qurbanli
Topic - The financial analysis on the basis of sample financial statements of BP Company.
Subject – Financial Accounting
Executive summary
Financial analysis is the process of scrutinizing the company’s operations in determining the going concern, stability and viability of the company. Company’s financial analysis unveils the profitability, Efficiency state, liquidity state as well as capital structure of the company hence gives a better opinion to the potential investors and the company’s management[ CITATION Car13 \l 1033 ]. BP Company financial report analysis described by the Profitability analysis ratios which comprise of return on equity, return on assets, and profit margin ratios. The Current ratio as well quick asset ratio indicating the BP Company’s liquidity state. Capital structure ratios involves debt to equity ratio, debt ratio, equity ratio, interest coverage ratio and debt coverage ratio.

Introduction

BP is a public limited company which was founded in 1908 as Anglo-Persian Oil Co. It has its registered office in London England and operates in the oil and gas industry and has a worldwide operation. The company main products are petroleum and natural gas. The company produces around 3.2 million barrels per day with an equivalent reserve of 17.9 billion barrels. The company has a total asset value of US$ 305.690 billion and total equity value of US$130.407 billion. BP PLC recent financial statements recorded a revenue of US$ 396.217 billion with an operating income of US$ 31.769 billion with US$ 23.758 billion attributable to ordinary shareholders. The company reported a net cash flow of US$ 22.52 billion.