Shell

Key Performance Metrics

  • The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 4.50% in 2019 to 5.99% in 2023. 
  • The average EBIT Margin for the period under analysis was 7.36%, with 2020 and 2022 performing the worst and best, respectively.
  • In the current year, SHELL was able to cover its interest liabilities 7.92 times – compared to 2019 when it was 6.31 times.
  • The Asset turnover stood at 0.76 times in 2023 from 0.88 in 2019, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of SHELL has fluctuated year on year. The revenue decreased by –47.97% between 2019 and 2020 and a further 41.64% increase was recorded between 2021 and 2022. There also occurred a decrease of –16.32% between 2022 and 2023 (the current period).
  • Shell’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks fair, as current ratio increased from 1.36:1 to 1.40:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.

Capital Structure

  • Shell is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been fluctuating year on year. The gearing position of the company appears to be high as it stood at 44% in the current year.

Source: Shell Annual Report

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