Calculate bps return on capital employed

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Reference no: EM132938277

Question - Use the following information from BP plc's accounts (all figures in $ millions) to calculate and comment on their financial ratios. Please show all work -- including formulas.

Current Assets: inventory 26,554; trade receivables 38,020; cash 3,562

Current Liabilities: trade payables 43,152; short-term loans 15,394

Long Term Liabilities: notes payable 204,943; long-term leases 60,000

Shareholders Equity: 689,345

Gross Profits: 75,942

Net Profits: 27,476

Sales Revenue: 133,345

Required -

-Calculate BP's Gross Profit Margin.

-Calculate BP's Net Profit Margin.

-Calculate BP's return on Capital Employed (RoCE)

-If you were a stakeholder, would you consider other investment options based upon the current RoCE? Explain your answer.

-Calculate BP's current ratio.

-Calculate BP's acid test ratio.

-Comment on BP's liquidity.

-Why would it be useful to BP's stakeholders to have liquidity ratio results for the previous year and for other oil companies?

Reference no: EM132938277

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