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 Investments

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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Royal Dutch Shell PLC, adjustment to income attributable to Royal Dutch Shell plc shareholders

US$ in millions

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12 months ended: Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Income attributable to Royal Dutch Shell plc shareholders (as reported) 14,874 16,371 26,592 30,918 20,127
Add: Unrealised gains (losses) on securities (797) (166) (815) 1,684 (298)
Income attributable to Royal Dutch Shell plc shareholders (adjusted) 14,077 16,205 25,777 32,602 19,829

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Royal Dutch Shell PLC, adjusted profitability 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 3.34% 3.59% 5.52% 6.93% 5.39%
Return on Equity (ROE)
Reported ROE 8.65% 9.09% 14.11% 18.24% 13.60%
Adjusted ROE 8.19% 9.00% 13.68% 19.23% 13.40%
Return on Assets (ROA)
Reported ROA 4.21% 4.58% 7.38% 8.96% 6.24%
Adjusted ROA 3.99% 4.53% 7.15% 9.44% 6.15%

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).

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

Royal Dutch Shell PLC, Profitability 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted income attributable to Royal Dutch Shell plc shareholders 14,077 16,205 25,777 32,602 19,829
Revenue 421,105 451,235 467,153 470,171 368,056
Profitability Ratio
Adjusted net profit margin2 3.34% 3.59% 5.52% 6.93% 5.39%

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 × 14,077 ÷ 421,105 = 3.34%

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 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted income attributable to Royal Dutch Shell plc shareholders 14,077 16,205 25,777 32,602 19,829
Equity attributable to Royal Dutch Shell plc shareholders 171,966 180,047 188,494 169,517 148,013
Profitability Ratio
Adjusted ROE2 8.19% 9.00% 13.68% 19.23% 13.40%

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 ÷ Equity attributable to Royal Dutch Shell plc shareholders
= 100 × 14,077 ÷ 171,966 = 8.19%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted income attributable to Royal Dutch Shell plc shareholders 14,077 16,205 25,777 32,602 19,829
Total assets 353,116 357,512 360,325 345,257 322,560
Profitability Ratio
Adjusted ROA2 3.99% 4.53% 7.15% 9.44% 6.15%

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 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 ÷ Total assets
= 100 × 14,077 ÷ 353,116 = 3.99%

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