BP PLC (BP) | Liquidity Analysis

See also

ˇ Show More

Liquidity ratios measure the company's ability to meet its short-term obligations.

Ratios (Summary)

BP PLC, liquidity ratios

	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
Current ratio	1.15	1.14	0.95	1.04	1.00
Quick ratio	0.68	0.64	0.54	0.54	0.55
Cash ratio	0.24	0.14	0.12	0.05	0.03

Source: Based on data from BP PLC Annual Reports

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	BP PLC's current ratio improved from 2008 to 2009 and from 2009 to 2010.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	BP PLC's quick ratio improved from 2008 to 2009 and from 2009 to 2010.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	BP PLC's cash ratio improved from 2008 to 2009 and from 2009 to 2010.

	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
Selected Financial Data (USD $ in millions)
Current assets	96,853	67,653	66,384	80,202	75,339
Current liabilities	83,879	59,320	69,793	77,231	75,352
Current Ratio, Comparison to Industry
BP PLC¹	1.15	1.14	0.95	1.04	1.00
Industry, Oil & Gas	1.27	1.22	1.17	1.20	–

Source: Based on data from BP PLC Annual Reports

2010 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 96,853 ÷ 83,879 = 1.15

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	BP PLC's current ratio improved from 2008 to 2009 and from 2009 to 2010.

	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	18,556	8,339	8,197	3,562	2,590
Other investments	1,532	–	–	–	–
Trade receivables	24,255	22,604	22,869	33,012	32,460
Loans	247	249	168	165	141
Other receivables	12,294	6,927	6,392	5,008	6,232
Total quick assets	56,884	38,119	37,626	41,747	41,423
Current liabilities	83,879	59,320	69,793	77,231	75,352
Quick Ratio, Comparison to Industry
BP PLC¹	0.68	0.64	0.54	0.54	0.55
Industry, Oil & Gas	0.84	0.77	0.74	0.79	–

Source: Based on data from BP PLC Annual Reports

2010 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= 56,884 ÷ 83,879 = 0.68

Ratio	Description	The company
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	BP PLC's quick ratio improved from 2008 to 2009 and from 2009 to 2010.

	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	18,556	8,339	8,197	3,562	2,590
Other investments	1,532	–	–	–	–
Total cash assets	20,088	8,339	8,197	3,562	2,590
Current liabilities	83,879	59,320	69,793	77,231	75,352
Cash Ratio, Comparison to Industry
BP PLC¹	0.24	0.14	0.12	0.05	0.03
Industry, Oil & Gas	0.32	0.24	0.27	0.22	–

Source: Based on data from BP PLC Annual Reports

2010 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= 20,088 ÷ 83,879 = 0.24

Ratio	Description	The company
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	BP PLC's cash ratio improved from 2008 to 2009 and from 2009 to 2010.