ipl-logo

Starbucks Financial Ratios

1775 Words8 Pages

Part A “If I were investing in oil and gas stocks, there is one question I would ask CEO`s: What portion of your capital is going to have to go in to stay even”-
Gwyn Morgan, CEO of Encona, CAPP Conference, June 2002

This report summaries the financial performance and position of two UK oil and gas production companies Tullow Oil plc. and Premier Oil plc. for the two years ended on 31st December, including 2012-2013 financial years. To be more precise, Tullow Oil plc. and Premier Oil plc. are leading independent oil and gas exploration and production companies, headquarters in London, UK. The main objective of these oil companies from their operations is to find, extract, refine and sell oil and …show more content…

and industry average by 9.5% and 1.4% respectively but underperformed against its 2012 operating profit margin by 8.9%.
Both Tullow Oil plc. and Premier Oil plc. net profit margin had fall in 2013 by 20.4% and 3.5 % because of profit after tax decreased by 68%. This is mainly because Tullow Oil plc.`s exploration in Africa took place in Sierra and Ethiopia. While Premier Oil plc. net profit margin is higher than industry average by 0.5%.
In both Tullow Oil plc. and Premier Oil plc. the rate of ROCE fall considerably by 9.5% and 4.7% and less than industry average by 4.9% and 1.1%. In Tullow Oil plc. this is generally because the company spent $1.1 billion, including Norway exploration costs on a post tax basis, on exploration and appraisal activities and has written off $417 million related to this expenditure. However, in the mid of 2013 Norway production delayed and it influenced to ROCE rate of Tullow Oil plc.
Premier Oil plc.`s ROA outperformed both Tullow Oil plc. and industry average by 2% and 0.3% . This is mainly due to Chim Sao project surpassed the milestone of $2 billion of gross oil revenues and 20 million barrels of oil production in …show more content…

Premier Oil plc.`s inventory turnover outperformed significantly comparing to Tullow Oil plc. by 14.8, this is mainly because of less cost of sales and inventory in 2013.
Both Tullow Oil plc. and Premier Oil plc.`s total asset turnover had fallen by 0.03 and 0.05 in 2013. This slight change occurred due to new site exploration costs in Norway, UK and Vietnam regions.
According to average collection period and average payment period Tullow Oil plc. have a smart financial management, because they collect their receivables faster than Premier Oil plc. by 60 days as well as pays their payables in 315 days, whereas Premier Oil plc.`s average payment period is 180 days. Financial Gearing Comparison
Gearing Ratio (Refer to Appendix 1) Tullow Oil plc. Premier Oil plc. 2013 2012 Change 2013 2012 Change
Gearing Ratio 52% 38% 14% 59% 53%

Show More
Related

Business Btec Business Level 3 Unit 5 P5

2302 Words | 10 Pages

1,250,000 ÷ 1,439,000 × 100 = 86.9. The net profit margin is 86.9% and shows that Tesco is good at using its money effectively in turning its sales into profit. This is beneficial to Tesco in many ways and can help them achieve higher profits as they could find other ways to manage the costs effectively to retain a higher profit in the following years to come. Employees

Read More

Big Lots Financial Ratios Paper

730 Words | 3 Pages

Net Profit Margin 152,828/5,200,439 =

Read More

Casey's General Store Financial Ratios

3256 Words | 14 Pages

I have written a short evaluation of each ratio listed after each ratio explaining if the average of the ratios over the previous four years are relatively good or relatively bad. The first significant trend that I noticed was found within the inventory turnover ratio. I noticed that within the past four years the ratios have stayed fairly consistent. Casey’s inventory turnover ratio is fairly high which exhibits that they are not having trouble selling their products. In fact, they sell and replenish at a high rate.

Read More

Financial Analysis Of Cango Essay

813 Words | 4 Pages

The profit margin percentage

Read More

Husky Energy Case Study

877 Words | 4 Pages

They have excelled in return on invested capital, when compared to the industry averages. Imperial’s operations contain a combination of conventional and unconventional assets, which reduces risk of high operating cost fluctuations common with oil sands projects. They have a dividend yield below 1%, which is significantly below the industry average. Imperial’s own the largest oil sands operation located at Cold Lake and are continuing to develop their Kearl oil sands project. A distinct advantage for Imperial Oil is the large portion of shares outstanding being owned by ExxonMobil, which is considered a leader in capital allocation.

Read More

Summary: Share Of EOG Resources

941 Words | 4 Pages

These premium locations are able to generate strong returns in a low commodity price environment. The shale player expects these wells to generate after-tax rates of return of 30% or better at $40 oil and more than 100% after-tax rates return at $60 oil. Therefore, these premium locations should enormously improve its performance when oil price starts improving and create value for its shareholders. This becomes evident as the company has identified about 3200 locations with approximately 2 billion barrels of oil equivalent of inventory at its premium locations for the next 12 years. The snapshot below shows its premium locations and rate of return at oil price in the bracket of $40 and $50 per

Read More

Costco Code Of Ethics Essay

519 Words | 3 Pages

This calculates to total revenue of $88.915 billion. Exhibit 1 also states that the net income for the year was $1.462 billion. By dividing the 2011 net profit by that year’s total revenue we find that Costco’s net profit margin for 2011 was only 1.64%. Note that net income was less than the membership fees. The net profit margin indicates the business itself would make little or no money.

Read More

Capstone Executive Summary

782 Words | 4 Pages

It has been a difficult year for Capstone Turbine (NASDAQ:CPST) on the stock market as weak oil prices have put pressure on the business. In fact, in the last reported quarter, Capstone had seen a tremendous drop of over 28% in the top line, while its loss came in at $0.34 per share. Though the loss was less than expected, it cannot be denied that the company is mired in deep trouble due to low oil prices that have led to spending cuts by oil and gas companies, therefore leading to lower orders for its turbines. However, Capstone is making changes to its business strategy that could help the company improve its financial performance in the future.

Read More

Debtor's Collection Times: Barratt Vs Persimmon

596 Words | 3 Pages

It is better for the companies to keep this ratio as high as possible. Barratt on average took 154 days to pay the outstanding balance from customers in 2014 while in 2013 creditor payment period was 165 days. Therefore the efficiency of Barratt decreased in terms of paying the outstanding balance to suppliers. Persimmon creditors payment period was 133 days in 2014 while in 2013, it was 141 days. It can be seen from the table above that Persimmon efficiency decreased in terms of paying outstanding balance to suppliers.

Read More

Oil And Gas Drilling Subsector

412 Words | 2 Pages

The oil and gas drilling subsector makes up between 4.6% and 6.5% of the global economy (Investopedia) and fluctuates directly with the demand for oil and gas (Hoovers). Larger companies compete based on their efficiently and technical proficiency. Additional they can offer a wider range of services to their clients. Smaller firms, on the other hand, maintain their advantage by offering specialized drilling or services in a specific area (Hoovers).

Read More

Disney, Sirius Radio, And Exxonmobil Merger

730 Words | 3 Pages

On November 30, 1998, Exxon and Mobil agreed to merge together with an agreement involving a total value of approximately $73.7 billion and completed it at the end of 1999. The motivation for this merger is to help both companies to better tackle oil and gas price instability and to win the global competition of market share. The merger boost ExxonMobil’s revenue from $7,910 million in 1999 to $17,720 million in 2000, and assets increased from $144 billion in 1999 to $149 billion in 2000. Besides the assets and earnings increase, Exxon’s deep water experience and development has combined perfectly with Mobil’s research and development on the production and exploration (Western 2002). The advantages of the two companies made ExxonMobil a more complete company that will not fall short in any area of expertise.

Read More

Exxon: Business Level Strategy

1123 Words | 5 Pages

As a major oil & gas company, ExxonMobil operates in three market segments: upstream, downstream and chemicals. ExxonMobil 's mission is to be the premier petroleum and petrochemical company in the world. To deliver on that mission requires each of the three market segments, upstream, downstream and chemical, to be premier among their competition. Overall Corporate Strategy With relentless attention to the operational excellence, safe, reliable, efficient operations and reducing the risk by applying the highest operational standards is embedded in ExxonMobil 's culture.

Read More

Analysis Of Financial Analysis: Whitbread PLC

3531 Words | 15 Pages

Analysis of Financial Statements Student number: 10221450 Word count: 2993 words Excluding Bibliography Course code: B9AC106 Course title: Financial Analysis Lecturer: Mr. Enda Murphy Company: Whitbread PLC   Table of Contents 1. Whitbread plc 3 Financial Ratio Comparison 6 1.1 Profitability Ratio 6 1.2 Liquidity Ratio 9 1.3 Efficiency Ratio 11 2. Intercontinental hotels group plc and Ratio Comparison with Whitbread 12 3. 10% Stake in Intercontinental Hotels Group PLC 13 Conclusion 16 Market Value and Book Value

Read More

Unilever Executive Summary

1494 Words | 6 Pages

Moreover, although the sales turnover of Unilever Plc has decreased, the operating profit and net profit still remain increased. The most highlighted part of this assignment is Unilever

Read More

Porter's Five Forces In The Oil And Gas Industry

1601 Words | 7 Pages

In the Oil & Gas Industry the competition is significantly intensive, with the market being ruled by big giants such as Exxon Mobil, Total, ConocoPhillips, British Petroleum, Chevron and the Royal Dutch Shell etc. Appendix A shows the market values of these super majors. The market is over ruled by three different types of players. 1.

Read More

More about Starbucks Financial Ratios

Related Topics

Open Document