Financial Analysis Of The Financial Position Of British Petroleum

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The purpose of this report is to indicate the financial position of British Petroleum as compared to its competitors. British Petroleum is the world’s seven super major valuable oil and Gas Company and is the constituent of FTSE 100. The company operates through 17800 service stations all over the world and produces about 3.2 billion barrels per day. The company conducts in operations in almost 80 countries. By market capitalisation the company is ranked at sixth position and has been ranked as fifth in terms of revenue generation in the oil and gas industry. (British Petroleum , 2006). This report analyses the financial position of British Petroleum by analysing its current performance to its last year performance and by analysing the performance …show more content…

This ratio helps in analysing the position of the company to satisfy its short term debts within a period of one year. The higher the current ratio would be the more the company will be in position to satisfy its short term debts. From the table 3 it is indicated that the current ratio of British Petroleum is higher than one both in the recent financial statements i.e. of 2014 and in the financial statement of previous year i.e. of 2013. In 2013 the current ratio of British Petroleum is 1.33 which indicates that the company has sufficient current assets to satisfy it short term liabilities. However, the current ratio in 2014 is 1.37 (BP Global, 2014) indicating increase and depicting that is in position to satisfy its short term debts. Thus this indicates the strength of company in satisfying its debt. As compared to its competitors BG Group, the current ratio of British Petroleum is slight high that is 1.57 (BG Group , 2014). The current ratio of BG Group is 1. 57 which indicate that as compared to British Petroleum, BG Group are in better position to satisfy its short term debt. Quick

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