Swot Analysis Of International Finance
In term of income before interest and taxes and income after taxes, we can see that BP had incur loss in year 2010. This is due to the Gulf in Mexico oil spill incident on 2o April 2010. BP have to take responsibility of the incidents and they have to incur lots of expenses. That resulting the loss in BP in 2010 but it does not mean that the company is not worth to invest. As we can see, its revenue still increasing and we believe that BP well get back in track before we realize it.
To compare the sustainability of the company, it is very important for the investor to look at the performance of the company not only base on the revenue and profit their earn, but also in other terms. We will compare the ratio that are important for the investor to know so that they can make decision on which are more dynamic.
7.1 Royal Dutch …show more content…
of os] | (19.81 cents) | 88.49 cents | Price Earning Ratios[ Current market price per share / EPS] | [$42.52 / $0.1981]= 214.64 | [$46.85 / $0.8849]=52.94 | Dividend Yield[ Dividend per share / Current market price per share] | [$0.14 / $42.52]= 0.00329 | [$0.56 / $46.86]=0.012 | Dividend Cover[ Profit after tax and interest / Total dividend ] | [-$3324 / $2,627m]= -1.265 | [$16,759m / $10,483m]=1.599 |
The oil spill in Gulf of Mexico had quite an effect on the company performance. We can see the ROE and Net profit Margin give a negative number as the company suffer loss in year 2010 compare to year 2009 where the company show quite a strong number in term of ROE and Net Profit Margin.
The Net Asset Turnover in year 2010 had increase compare to 2009 due to the increase in sales in 2010. Earning per Share, dividend yield and dividend cover had decrease compare to year 2009. This show that the return that the company can give to investors had slightly decreased.
But overall, the decrease in company performance is due to the special incident that occur in 2010.