BP

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin increased from 1.42% in 2017 to 5.17% in 2021.
  • The EBIT Margin for the period under analysis was 11.01%, with 2020 and 2021 performing the worst and best, respectively.
  • In the current year, BP was able to cover its interest liabilities 6.33 times in the current year compared to 2017 when it was 4.57 times.
  • The Capex to Sales stood at 0.08 in 2021 from 0.06 in 2017, implying a high performance of the business in relation to revenue.

Profitability

  • The revenue of BP has decreased over the years. The revenue decreased by 32.87% between 2017 and 2021. There occurred an increase of 50.53% between 2020 and 2021 (the current period). 
  • BP’s performance in profitability looks poor as the return on equity also recorded poor performance during the period of analysis

Liquidity

  • The company’s result in liquidity looks good, as current ratio increase from 1.16:1 to 1.22:1 on the last year. Which implies that the company have enough assets to settle its current liabilities.
  • Receivables days improved over the 5-year period as it took an average of 58 days to recover money owed by customers.
  • Working capital steadily decrease between 2017 and 2021, falling by 14.10% with a YoY fall of 70.49%.

Capital Structure

  • BP is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been rising year on year. The gearing position of the company appears to be high as it stood at 5.81 in the current year.

 

Source:  BP Annual Report

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