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Running Head: ROYAL DUTCH SHELL PLC & BP PLC. ANALYSIS 1
Royal Dutch Shell PLC & BP PLC. Analysis
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ROYAL DUTCH SHELL PLC & BP PLC. ANALYSIS 2
Introduction
Ratio analysis examines line-item statistics from a firm's financial records to elicit
information about profitability, efficiency, liquidity, and solvency. Ratio analysis may show how
a firm performs over time by comparing it to its rivals in the same industry or comparing its
historical performance. This article will present a comparative review and analysis of Royal
Dutch Shell and British Petroleum, the second and fourth-largest oil and gas drilling firms
globally in terms of revenue. The article will analyze the two firms' liquidity ratios and working
capital/current ratios to evaluate their capacity to fund day-to-day operations and pay current
liabilities. By assessing their Solvency ratios, these two firms' capacity to pay their long-term
commitments will also be compared.
Introduction to the Company
Royal Dutch Shell plc is an oil and gas company. The headquarters of the corporation are
in The Hague, Netherlands. In terms of global company rankings, it is ranked second among the
world's largest corporations. One of the 50 largest firms in the United States is its Shell Oil
subsidiary. Shell mostly manages vertically integrated activities (Royal Dutch Shell PLC, 2021).
British Petroleum is a global corporation based in the United Kingdom. The company's
headquarters are in London. It is ranked first among oil and gas drilling and extraction
businesses, and it is the world's fourth-biggest major multinational corporation. BP's history
dated to 1909, when the Anglo-Persian Oil Company was established as a subordinate of the
Burmah Oil Company to explore and drill oil deposits in Iran (British PB PLC, 2021).
PART II

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Running Head: ROYAL DUTCH SHELL PLC & BP PLC. ANALYSIS Royal Dutch Shell PLC & BP PLC. Analysis Name Course Institution Date 1 ROYAL DUTCH SHELL PLC & BP PLC. ANALYSIS 2 Introduction Ratio analysis examines line-item statistics from a firm's financial records to elicit information about profitability, efficiency, liquidity, and solvency. Ratio analysis may show how a firm performs over time by comparing it to its rivals in the same industry or comparing its historical performance. This article will present a comparative review and analysis of Royal Dutch Shell and British Petroleum, the second and fourth-largest oil and gas drilling firms globally in terms of revenue. The article will analyze the two firms' liquidity ratios and working capital/current ratios to evaluate their capacity to fund day-to-day operations and pay current liabilities. By assessing their Solvency ratios, these two firms' capacity to pay their long-term commitments will also be compared. Introduction to the Company Royal Dutch Shell plc is an oil and gas company. The headquarters of the corporation are in The Hague, Netherlands. In terms of global company rankings, it is ranked second among the world's largest corporations. One of the 50 largest firms in the United States is its Shell Oil subsidiary. Shell mostly manages vertically integrated activities (Royal Dutch Shell PLC, 2021). British Petroleum is a global corporation based in the United Kingdom. The company's headquarters are in London. I ...
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