Profitability Analysis

Difficulty level: Basic


Ratios (Summary)

BP PLC, profitability ratios

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Return on Sales
Gross profit margin 12.53% 14.05% 12.89% 17.51% 5.48%
Operating profit margin 0.37% 3.87% 1.87% 7.69% -5.22%
Net profit margin 1.07% 6.19% 3.08% 6.84% -1.25%
Return on Investment
Return on equity (ROE) 3.39% 18.14% 9.78% 23.06% -3.92%
Return on assets (ROA) 1.33% 7.67% 3.86% 8.77% -1.37%

Source: Based on data from BP PLC Annual Reports

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. BP PLC's gross profit margin improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. BP PLC's operating profit margin improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. BP PLC's net profit margin improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
ROE A profitability ratio calculated as net income divided by shareholders' equity. BP PLC's ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
ROA A profitability ratio calculated as net income divided by total assets. BP PLC's ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

ADVERTISEMENT

Top


Gross Profit Margin

BP PLC, gross profit margin calculation

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (USD $ in millions)
Gross profit 44,286  53,258  48,427  65,754  16,281 
Sales and other operating revenues 353,568  379,136  375,580  375,517  297,107 
Ratio
Gross profit margin1 12.53% 14.05% 12.89% 17.51% 5.48%

Source: Based on data from BP PLC Annual Reports

2014 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Sales and other operating revenues
= 100 × 44,286 ÷ 353,568 = 12.53%

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. BP PLC's gross profit margin improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

ADVERTISEMENT

Top


Operating Profit Margin

BP PLC, operating profit margin calculation, comparison to benchmarks

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (USD $ in millions)
Operating profit (loss) 1,302  14,688  7,028  28,871  (15,523)
Sales and other operating revenues 353,568  379,136  375,580  375,517  297,107 
Ratio
Operating profit margin1 0.37% 3.87% 1.87% 7.69% -5.22%
Benchmarks
Operating Profit Margin, Competitors
Chevron Corp. 9.84% 12.36% 15.18% 15.67% 12.80%
ConocoPhillips 13.29% 20.52% 20.94% 7.17% 6.24%
Exxon Mobil Corp. 8.65% 9.58% 11.01% 11.58% 10.84%
Royal Dutch Shell PLC 4.47% 5.73% 7.84% 8.91% 6.93%
Operating Profit Margin, Sector
Integrated Oil & Gas 5.69% 7.82% 8.88% 10.03% 6.13%
Operating Profit Margin, Industry
Oil & Gas 6.29% 8.52% 9.29% 10.12% 6.68%

Source: Based on data from BP PLC Annual Reports

2014 Calculations

1 Operating profit margin = 100 × Operating profit (loss) ÷ Sales and other operating revenues
= 100 × 1,302 ÷ 353,568 = 0.37%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. BP PLC's operating profit margin improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

ADVERTISEMENT

Top


Net Profit Margin

BP PLC, net profit margin calculation, comparison to benchmarks

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (USD $ 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 
Ratio
Net profit margin1 1.07% 6.19% 3.08% 6.84% -1.25%
Benchmarks
Net Profit Margin, Competitors
Chevron Corp. 9.60% 9.73% 11.35% 11.01% 9.60%
ConocoPhillips 13.08% 16.83% 14.54% 5.08% 6.00%
Exxon Mobil Corp. 8.25% 7.74% 9.90% 8.79% 8.23%
Royal Dutch Shell PLC 3.53% 3.63% 5.69% 6.58% 5.47%
Net Profit Margin, Sector
Integrated Oil & Gas 5.44% 6.75% 7.43% 7.60% 5.43%
Net Profit Margin, Industry
Oil & Gas 5.14% 6.93% 7.37% 7.54% 5.60%

Source: Based on data from BP PLC Annual Reports

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%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. BP PLC's net profit margin improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

ADVERTISEMENT

Top


Return on Equity (ROE)

BP PLC, ROE calculation, comparison to benchmarks

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (USD $ 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 
Ratio
ROE1 3.39% 18.14% 9.78% 23.06% -3.92%
Benchmarks
ROE, Competitors
Chevron Corp. 12.41% 14.37% 19.18% 22.16% 18.10%
ConocoPhillips 13.23% 17.58% 17.56% 19.07% 16.57%
Exxon Mobil Corp. 18.65% 18.72% 27.06% 26.59% 20.74%
Royal Dutch Shell PLC 8.65% 9.09% 14.11% 18.24% 13.60%
ROE, Sector
Integrated Oil & Gas 11.63% 15.04% 17.90% 22.03% 13.71%
ROE, Industry
Oil & Gas 10.17% 14.33% 16.39% 20.05% 12.76%

Source: Based on data from BP PLC Annual Reports

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%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. BP PLC's ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

ADVERTISEMENT

Top


Return on Assets (ROA)

BP PLC, ROA calculation, comparison to benchmarks

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (USD $ 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 
Ratio
ROA1 1.33% 7.67% 3.86% 8.77% -1.37%
Benchmarks
ROA, Competitors
Chevron Corp. 7.23% 8.44% 11.24% 12.84% 10.30%
ConocoPhillips 5.89% 7.76% 7.19% 8.12% 7.27%
Exxon Mobil Corp. 9.30% 9.39% 13.45% 12.40% 10.07%
Royal Dutch Shell PLC 4.21% 4.58% 7.38% 8.96% 6.24%
ROA, Sector
Integrated Oil & Gas 5.64% 7.45% 8.75% 10.29% 6.24%
ROA, Industry
Oil & Gas 4.93% 7.02% 7.97% 9.53% 5.98%

Source: Based on data from BP PLC Annual Reports

2014 Calculations

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

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

ADVERTISEMENT

Top