Financial AccountingFinancial Accounting Literature & Language Case Study (Case Study Sample)

REPORT TO THE NON-FINANCIAL DIRECTORS OF BP PLC
Name
P. Number
Module Code
Word Count: 1789
Table of Contents TOC \o "1-3" \h \z \u Part A PAGEREF _Toc3152487 \h 3Financial Ratios Analysis PAGEREF _Toc3152488 \h 3Profitability ratio PAGEREF _Toc3152489 \h 3Efficiency ratio PAGEREF _Toc3152490 \h 4Performance Ratios PAGEREF _Toc3152491 \h 5Part B: PAGEREF _Toc3152492 \h 5Cross Listings PAGEREF _Toc3152493 \h 5Part C: PAGEREF _Toc3152494 \h 7Foreign Exchange Risks PAGEREF _Toc3152495 \h 7Foreign Exchange Risk Management PAGEREF _Toc3152496 \h 7Reference List PAGEREF _Toc3152497 \h 9
Introduction
BP Plc. is a multinational oil and gas companies with headquarter in London. The company stock is listed for trading in three financial markets including Frankfurt, London, and New York Stock Exchanges. This is a report on the analysis of BP Plc. annual report for 2017 and 2016 using the performance, profitability and efficiency ratios. it also discusses reasons for cross listing and the foreign exchange that affects the company activities.
Part A
Item

Formula

2017

2016

Change

Profitability ratio





Return on Assets

Net IncomeShareholder equity

1.30%

0.063%

1884%

Return on equity

Net Income Av. total Assets

3.65%

0.0178%

1951%

Efficiency Ratios





Working Capital Ratio

Current AssetsLong-term Liabilities

1.158

1.162

3.44%

Inventory turnover

Cost of sales Average stock

10 times

8 times

25%