Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
BP PLC, solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | BP PLC debt to equity ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | BP PLC debt to capital ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | BP PLC debt to assets ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | BP PLC financial leverage ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | BP PLC interest coverage ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Debt to Equity
BP PLC, debt to equity 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 finance debt | 6,877) | 7,381) | 10,030) | 9,044) | 14,626) | |
| Non-current finance debt | 45,977) | 40,811) | 38,767) | 35,169) | 30,710) | |
| Total debt | 52,854) | 48,192) | 48,797) | 44,213) | 45,336) | |
| Total BP shareholders’ equity | 111,441) | 129,302) | 118,414) | 111,465) | 94,987) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.47 | 0.37 | 0.41 | 0.40 | 0.48 | |
| Benchmarks | ||||||
| Debt to Equity, 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
Debt to equity = Total debt ÷ Total BP shareholders’ equity
= 52,854 ÷ 111,441 = 0.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | BP PLC debt to equity ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Debt to Capital
BP PLC, debt to capital 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 finance debt | 6,877) | 7,381) | 10,030) | 9,044) | 14,626) | |
| Non-current finance debt | 45,977) | 40,811) | 38,767) | 35,169) | 30,710) | |
| Total debt | 52,854) | 48,192) | 48,797) | 44,213) | 45,336) | |
| Total BP shareholders’ equity | 111,441) | 129,302) | 118,414) | 111,465) | 94,987) | |
| Total capital | 164,295) | 177,494) | 167,211) | 155,678) | 140,323) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.32 | 0.27 | 0.29 | 0.28 | 0.32 | |
| Benchmarks | ||||||
| Debt to Capital, 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
Debt to capital = Total debt ÷ Total capital
= 52,854 ÷ 164,295 = 0.32
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | BP PLC debt to capital ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Debt to Assets
BP PLC, debt to assets 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 finance debt | 6,877) | 7,381) | 10,030) | 9,044) | 14,626) | |
| Non-current finance debt | 45,977) | 40,811) | 38,767) | 35,169) | 30,710) | |
| Total debt | 52,854) | 48,192) | 48,797) | 44,213) | 45,336) | |
| Total assets | 284,305) | 305,690) | 300,193) | 293,068) | 272,262) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.19 | 0.16 | 0.16 | 0.15 | 0.17 | |
| Benchmarks | ||||||
| Debt to Assets, 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
Debt to assets = Total debt ÷ Total assets
= 52,854 ÷ 284,305 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | BP PLC debt to assets ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Financial Leverage
BP PLC, financial leverage 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) | ||||||
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, 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
Financial leverage = Total assets ÷ Total BP shareholders’ equity
= 284,305 ÷ 111,441 = 2.55
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | BP PLC financial leverage ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level. |
Interest Coverage
BP PLC, interest coverage 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) | ||||||
| Profit (loss) for the year attributable to BP shareholders | 3,780) | 23,451) | 11,582) | 25,700) | (3,719) | |
| Add: Net income attributable to noncontrolling interest | 223) | 307) | 234) | 397) | 395) | |
| Add: Income tax expense | 947) | 6,463) | 6,993) | 12,737) | (1,501) | |
| Add: Finance costs | 1,148) | 1,068) | 1,125) | 1,246) | 1,170) | |
| Earnings before interest and tax (EBIT) | 6,098) | 31,289) | 19,934) | 40,080) | (3,655) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 5.31 | 29.30 | 17.72 | 32.17 | -3.12 | |
| Benchmarks | ||||||
| Interest Coverage, 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
Interest coverage = EBIT ÷ Interest expense
= 6,098 ÷ 1,148 = 5.31
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | BP PLC interest coverage ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |