BP

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin increased from 1.48% in 2019 to 7.45% in 2023.
  • The EBIT Margin for the period under analysis was 25%, with 2020 and 2023 performing the worst and best, respectively.
  • In the current year, BP covered its interest liabilities 7.12 times in the current year compared to 2019 when it was 3.36 times.
  • The Capex to Sales stood at 0.07 in 2023 from 0.05 in 2019, implying a high performance of the business in relation to revenue.

Profitability

  • The revenue of BP has decreased and increased over the years. The revenue decreased 61% between 2019 and There occurred an increase of 50.1% between 2020 and 2022, and a decrease of 14% from 2022 to 2023 (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 the current ratio has increased from 1.14:1 to 1.21:1 in the last year. Which implies that the company has enough assets to settle its current liabilities.
  • Receivables days improved over the 5-year period as it took an average of 52 days to recover money owed by customers.

Capital Structure

  • BP is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been stable year on year. The gearing position of the company appears to be low as it stood at 8.07 in the current year.

 

Source:  BP Annual Report

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