Stock Analysis on Net
Stock Analysis on Net

Royal Dutch Shell PLC (NYSE:RDSA)

This company has been moved to the archive! The financial data has not been updated since March 12, 2015.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Royal Dutch Shell PLC, balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
LNG off-take and sales contracts 3,271 — — — —
Other 4,562 4,585 4,547 4,411 4,429
Intangible assets, excluding goodwill, cost 7,833 — — — —
Accumulated depreciation, depletion and amortisation, including impairments (3,153) (2,754) (2,692) (2,510) (2,380)
Intangible assets, excluding goodwill, carrying amount 4,680 1,831 1,855 1,901 2,049
Goodwill 2,396 2,563 2,615 2,620 2,990
Intangible assets 7,076 4,394 4,470 4,521 5,039

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).

Item Description The company
Intangible assets, excluding goodwill, carrying amount Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Royal Dutch Shell PLC intangible assets, excluding goodwill, carrying amount decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Royal Dutch Shell PLC goodwill decreased from 2012 to 2013 and from 2013 to 2014.
Intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Royal Dutch Shell PLC intangible assets decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

Adjustments to Financial Statements: Removal of Goodwill

Royal Dutch Shell PLC, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Adjustment to Total Assets
Total assets (as reported) 353,116 357,512 360,325 345,257 322,560
Less: Goodwill 2,396 2,563 2,615 2,620 2,990
Total assets (adjusted) 350,720 354,949 357,710 342,637 319,570
Adjustment to Equity Attributable To Royal Dutch Shell Plc Shareholders
Equity attributable to Royal Dutch Shell plc shareholders (as reported) 171,966 180,047 188,494 169,517 148,013
Less: Goodwill 2,396 2,563 2,615 2,620 2,990
Equity attributable to Royal Dutch Shell plc shareholders (adjusted) 169,570 177,484 185,879 166,897 145,023
Adjustment to Income Attributable To Royal Dutch Shell Plc Shareholders
Income attributable to Royal Dutch Shell plc shareholders (as reported) 14,874 16,371 26,592 30,918 20,127
Add: Goodwill depreciation, depletion and amortisation, including impairments, charge for the year — 54 39 31 115
Income attributable to Royal Dutch Shell plc shareholders (adjusted) 14,874 16,425 26,631 30,949 20,242

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).

Royal Dutch Shell PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Royal Dutch Shell PLC, adjusted financial ratios

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Net Profit Margin
Reported net profit margin 3.53% 3.63% 5.69% 6.58% 5.47%
Adjusted net profit margin 3.53% 3.64% 5.70% 6.58% 5.50%
Total Asset Turnover
Reported total asset turnover 1.19 1.26 1.30 1.36 1.14
Adjusted total asset turnover 1.20 1.27 1.31 1.37 1.15
Financial Leverage
Reported financial leverage 2.05 1.99 1.91 2.04 2.18
Adjusted financial leverage 2.07 2.00 1.92 2.05 2.20
Return on Equity (ROE)
Reported ROE 8.65% 9.09% 14.11% 18.24% 13.60%
Adjusted ROE 8.77% 9.25% 14.33% 18.54% 13.96%
Return on Assets (ROA)
Reported ROA 4.21% 4.58% 7.38% 8.96% 6.24%
Adjusted ROA 4.24% 4.63% 7.44% 9.03% 6.33%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Royal Dutch Shell PLC adjusted net profit margin ratio deteriorated from 2012 to 2013 and from 2013 to 2014.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Royal Dutch Shell PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 and from 2013 to 2014.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Royal Dutch Shell PLC adjusted financial leverage ratio increased from 2012 to 2013 and from 2013 to 2014.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Royal Dutch Shell PLC adjusted ROE deteriorated from 2012 to 2013 and from 2013 to 2014.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Royal Dutch Shell PLC adjusted ROA deteriorated from 2012 to 2013 and from 2013 to 2014.

Royal Dutch Shell PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Income attributable to Royal Dutch Shell plc shareholders 14,874 16,371 26,592 30,918 20,127
Revenue 421,105 451,235 467,153 470,171 368,056
Profitability Ratio
Net profit margin1 3.53% 3.63% 5.69% 6.58% 5.47%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted income attributable to Royal Dutch Shell plc shareholders 14,874 16,425 26,631 30,949 20,242
Revenue 421,105 451,235 467,153 470,171 368,056
Profitability Ratio
Adjusted net profit margin2 3.53% 3.64% 5.70% 6.58% 5.50%

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).

2014 Calculations

1 Net profit margin = 100 × Income attributable to Royal Dutch Shell plc shareholders ÷ Revenue
= 100 × 14,874 ÷ 421,105 = 3.53%

2 Adjusted net profit margin = 100 × Adjusted income attributable to Royal Dutch Shell plc shareholders ÷ Revenue
= 100 × 14,874 ÷ 421,105 = 3.53%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Royal Dutch Shell PLC adjusted net profit margin ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Revenue 421,105 451,235 467,153 470,171 368,056
Total assets 353,116 357,512 360,325 345,257 322,560
Activity Ratio
Total asset turnover1 1.19 1.26 1.30 1.36 1.14
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue 421,105 451,235 467,153 470,171 368,056
Adjusted total assets 350,720 354,949 357,710 342,637 319,570
Activity Ratio
Adjusted total asset turnover2 1.20 1.27 1.31 1.37 1.15

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).

2014 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 421,105 ÷ 353,116 = 1.19

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 421,105 ÷ 350,720 = 1.20

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Royal Dutch Shell PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Total assets 353,116 357,512 360,325 345,257 322,560
Equity attributable to Royal Dutch Shell plc shareholders 171,966 180,047 188,494 169,517 148,013
Solvency Ratio
Financial leverage1 2.05 1.99 1.91 2.04 2.18
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 350,720 354,949 357,710 342,637 319,570
Adjusted equity attributable to Royal Dutch Shell plc shareholders 169,570 177,484 185,879 166,897 145,023
Solvency Ratio
Adjusted financial leverage2 2.07 2.00 1.92 2.05 2.20

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).

2014 Calculations

1 Financial leverage = Total assets ÷ Equity attributable to Royal Dutch Shell plc shareholders
= 353,116 ÷ 171,966 = 2.05

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to Royal Dutch Shell plc shareholders
= 350,720 ÷ 169,570 = 2.07

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Royal Dutch Shell PLC adjusted financial leverage ratio increased from 2012 to 2013 and from 2013 to 2014.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Income attributable to Royal Dutch Shell plc shareholders 14,874 16,371 26,592 30,918 20,127
Equity attributable to Royal Dutch Shell plc shareholders 171,966 180,047 188,494 169,517 148,013
Profitability Ratio
ROE1 8.65% 9.09% 14.11% 18.24% 13.60%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted income attributable to Royal Dutch Shell plc shareholders 14,874 16,425 26,631 30,949 20,242
Adjusted equity attributable to Royal Dutch Shell plc shareholders 169,570 177,484 185,879 166,897 145,023
Profitability Ratio
Adjusted ROE2 8.77% 9.25% 14.33% 18.54% 13.96%

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).

2014 Calculations

1 ROE = 100 × Income attributable to Royal Dutch Shell plc shareholders ÷ Equity attributable to Royal Dutch Shell plc shareholders
= 100 × 14,874 ÷ 171,966 = 8.65%

2 Adjusted ROE = 100 × Adjusted income attributable to Royal Dutch Shell plc shareholders ÷ Adjusted equity attributable to Royal Dutch Shell plc shareholders
= 100 × 14,874 ÷ 169,570 = 8.77%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Royal Dutch Shell PLC adjusted ROE deteriorated from 2012 to 2013 and from 2013 to 2014.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Income attributable to Royal Dutch Shell plc shareholders 14,874 16,371 26,592 30,918 20,127
Total assets 353,116 357,512 360,325 345,257 322,560
Profitability Ratio
ROA1 4.21% 4.58% 7.38% 8.96% 6.24%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted income attributable to Royal Dutch Shell plc shareholders 14,874 16,425 26,631 30,949 20,242
Adjusted total assets 350,720 354,949 357,710 342,637 319,570
Profitability Ratio
Adjusted ROA2 4.24% 4.63% 7.44% 9.03% 6.33%

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).

2014 Calculations

1 ROA = 100 × Income attributable to Royal Dutch Shell plc shareholders ÷ Total assets
= 100 × 14,874 ÷ 353,116 = 4.21%

2 Adjusted ROA = 100 × Adjusted income attributable to Royal Dutch Shell plc shareholders ÷ Adjusted total assets
= 100 × 14,874 ÷ 350,720 = 4.24%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Royal Dutch Shell PLC adjusted ROA deteriorated from 2012 to 2013 and from 2013 to 2014.