Stock Analysis on Net

BP PLC (NYSE:BP)

This company has been moved to the archive! The financial data has not been updated since March 3, 2015.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

BP 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
Exploration and appraisal expenditure 21,723 21,742 23,926 20,670 13,476
Other intangibles 4,268 3,936 3,710 3,474 3,403
Intangible assets, cost 25,991 25,678 27,636 24,144 16,879
Accumulated amortization (5,084) (3,639) (3,595) (3,042) (2,581)
Intangible assets, net book amount 20,907 22,039 24,041 21,102 14,298
Goodwill 11,868 12,181 11,861 12,100 8,598
Goodwill and intangible assets 32,775 34,220 35,902 33,202 22,896

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, net book 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. BP PLC intangible assets, net book amount decreased from 2012 to 2013 and from 2013 to 2014.
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. BP PLC goodwill increased from 2012 to 2013 but then slightly decreased from 2013 to 2014 not reaching 2012 level.
Goodwill and 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. BP PLC goodwill and intangible assets decreased from 2012 to 2013 and from 2013 to 2014.

Adjustments to Financial Statements: Removal of Goodwill

BP 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) 284,305 305,690 300,193 293,068 272,262
Less: Goodwill 11,868 12,181 11,861 12,100 8,598
Total assets (adjusted) 272,437 293,509 288,332 280,968 263,664
Adjustment to Total BP Shareholders’ Equity
Total BP shareholders’ equity (as reported) 111,441 129,302 118,414 111,465 94,987
Less: Goodwill 11,868 12,181 11,861 12,100 8,598
Total BP shareholders’ equity (adjusted) 99,573 117,121 106,553 99,365 86,389
Adjustment to Profit (loss) For The Year Attributable To BP Shareholders
Profit (loss) for the year attributable to BP shareholders (as reported) 3,780 23,451 11,582 25,700 (3,719)
Add: Goodwill impairment losses 56 66
Profit (loss) for the year attributable to BP shareholders (adjusted) 3,780 23,507 11,582 25,766 (3,719)

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).


BP PLC, Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

BP 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 1.07% 6.19% 3.08% 6.84% -1.25%
Adjusted net profit margin 1.07% 6.20% 3.08% 6.86% -1.25%
Total Asset Turnover
Reported total asset turnover 1.24 1.24 1.25 1.28 1.09
Adjusted total asset turnover 1.30 1.29 1.30 1.34 1.13
Financial Leverage
Reported financial leverage 2.55 2.36 2.54 2.63 2.87
Adjusted financial leverage 2.74 2.51 2.71 2.83 3.05
Return on Equity (ROE)
Reported ROE 3.39% 18.14% 9.78% 23.06% -3.92%
Adjusted ROE 3.80% 20.07% 10.87% 25.93% -4.30%
Return on Assets (ROA)
Reported ROA 1.33% 7.67% 3.86% 8.77% -1.37%
Adjusted ROA 1.39% 8.01% 4.02% 9.17% -1.41%

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. BP PLC adjusted net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. BP PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 not reaching 2012 level.
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.
BP PLC adjusted financial leverage ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. BP PLC adjusted ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. BP PLC adjusted ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

BP 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)
Profit (loss) for the year attributable to BP shareholders 3,780 23,451 11,582 25,700 (3,719)
Sales and other operating revenues 353,568 379,136 375,580 375,517 297,107
Profitability Ratio
Net profit margin1 1.07% 6.19% 3.08% 6.84% -1.25%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted profit (loss) for the year attributable to BP shareholders 3,780 23,507 11,582 25,766 (3,719)
Sales and other operating revenues 353,568 379,136 375,580 375,517 297,107
Profitability Ratio
Adjusted net profit margin2 1.07% 6.20% 3.08% 6.86% -1.25%

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 × Profit (loss) for the year attributable to BP shareholders ÷ Sales and other operating revenues
= 100 × 3,780 ÷ 353,568 = 1.07%

2 Adjusted net profit margin = 100 × Adjusted profit (loss) for the year attributable to BP shareholders ÷ Sales and other operating revenues
= 100 × 3,780 ÷ 353,568 = 1.07%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. BP PLC adjusted net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly 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)
Sales and other operating revenues 353,568 379,136 375,580 375,517 297,107
Total assets 284,305 305,690 300,193 293,068 272,262
Activity Ratio
Total asset turnover1 1.24 1.24 1.25 1.28 1.09
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales and other operating revenues 353,568 379,136 375,580 375,517 297,107
Adjusted total assets 272,437 293,509 288,332 280,968 263,664
Activity Ratio
Adjusted total asset turnover2 1.30 1.29 1.30 1.34 1.13

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 = Sales and other operating revenues ÷ Total assets
= 353,568 ÷ 284,305 = 1.24

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 353,568 ÷ 272,437 = 1.30

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. BP PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 not reaching 2012 level.

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 284,305 305,690 300,193 293,068 272,262
Total BP shareholders’ equity 111,441 129,302 118,414 111,465 94,987
Solvency Ratio
Financial leverage1 2.55 2.36 2.54 2.63 2.87
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 272,437 293,509 288,332 280,968 263,664
Adjusted total BP shareholders’ equity 99,573 117,121 106,553 99,365 86,389
Solvency Ratio
Adjusted financial leverage2 2.74 2.51 2.71 2.83 3.05

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 ÷ Total BP shareholders’ equity
= 284,305 ÷ 111,441 = 2.55

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total BP shareholders’ equity
= 272,437 ÷ 99,573 = 2.74

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.
BP PLC adjusted financial leverage ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

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)
Profit (loss) for the year attributable to BP shareholders 3,780 23,451 11,582 25,700 (3,719)
Total BP shareholders’ equity 111,441 129,302 118,414 111,465 94,987
Profitability Ratio
ROE1 3.39% 18.14% 9.78% 23.06% -3.92%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted profit (loss) for the year attributable to BP shareholders 3,780 23,507 11,582 25,766 (3,719)
Adjusted total BP shareholders’ equity 99,573 117,121 106,553 99,365 86,389
Profitability Ratio
Adjusted ROE2 3.80% 20.07% 10.87% 25.93% -4.30%

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 × Profit (loss) for the year attributable to BP shareholders ÷ Total BP shareholders’ equity
= 100 × 3,780 ÷ 111,441 = 3.39%

2 Adjusted ROE = 100 × Adjusted profit (loss) for the year attributable to BP shareholders ÷ Adjusted total BP shareholders’ equity
= 100 × 3,780 ÷ 99,573 = 3.80%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. BP PLC adjusted ROE improved from 2012 to 2013 but then deteriorated significantly 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)
Profit (loss) for the year attributable to BP shareholders 3,780 23,451 11,582 25,700 (3,719)
Total assets 284,305 305,690 300,193 293,068 272,262
Profitability Ratio
ROA1 1.33% 7.67% 3.86% 8.77% -1.37%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted profit (loss) for the year attributable to BP shareholders 3,780 23,507 11,582 25,766 (3,719)
Adjusted total assets 272,437 293,509 288,332 280,968 263,664
Profitability Ratio
Adjusted ROA2 1.39% 8.01% 4.02% 9.17% -1.41%

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 × Profit (loss) for the year attributable to BP shareholders ÷ Total assets
= 100 × 3,780 ÷ 284,305 = 1.33%

2 Adjusted ROA = 100 × Adjusted profit (loss) for the year attributable to BP shareholders ÷ Adjusted total assets
= 100 × 3,780 ÷ 272,437 = 1.39%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. BP PLC adjusted ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.