Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
BP PLC, liquidity ratios
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.37 | 1.33 | 1.43 | 1.16 | 1.15 | |
| Quick ratio | 0.97 | 0.87 | 0.74 | 0.69 | 0.68 | |
| Cash ratio | 0.47 | 0.32 | 0.26 | 0.17 | 0.24 |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | BP PLC current ratio deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | BP PLC quick ratio improved from 2012 to 2013 and from 2013 to 2014. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | BP PLC cash ratio improved from 2012 to 2013 and from 2013 to 2014. |
Current Ratio
BP PLC, current ratio calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 87,262) | 96,840) | 110,981) | 97,584) | 96,853) | |
| Current liabilities | 63,615) | 72,812) | 77,586) | 84,318) | 83,879) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.37 | 1.33 | 1.43 | 1.16 | 1.15 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Current ratio = Current assets ÷ Current liabilities
= 87,262 ÷ 63,615 = 1.37
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | BP PLC current ratio deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014. |
Quick Ratio
BP PLC, quick ratio calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Loans | 333) | 216) | 247) | 244) | 247) | |
| Trade receivables | 19,671) | 28,868) | 25,977) | 27,929) | 24,255) | |
| Other receivables | 11,367) | 10,963) | 11,687) | 15,597) | 12,294) | |
| Other investments | 329) | 467) | 319) | 288) | 1,532) | |
| Cash and cash equivalents | 29,763) | 22,520) | 19,548) | 14,067) | 18,556) | |
| Total quick assets | 61,463) | 63,034) | 57,778) | 58,125) | 56,884) | |
| Current liabilities | 63,615) | 72,812) | 77,586) | 84,318) | 83,879) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.97 | 0.87 | 0.74 | 0.69 | 0.68 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 61,463 ÷ 63,615 = 0.97
2 Click competitor name to see calculations.
| Liquidity 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 quick ratio improved from 2012 to 2013 and from 2013 to 2014. |
Cash Ratio
BP PLC, cash ratio calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Other investments | 329) | 467) | 319) | 288) | 1,532) | |
| Cash and cash equivalents | 29,763) | 22,520) | 19,548) | 14,067) | 18,556) | |
| Total cash assets | 30,092) | 22,987) | 19,867) | 14,355) | 20,088) | |
| Current liabilities | 63,615) | 72,812) | 77,586) | 84,318) | 83,879) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.47 | 0.32 | 0.26 | 0.17 | 0.24 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 30,092 ÷ 63,615 = 0.47
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | BP PLC cash ratio improved from 2012 to 2013 and from 2013 to 2014. |