Essays on BP Financial Statement Analysis Report

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The paper “ BP Financial Statement Analysis” is a   forceful example of a report on finance & accounting. BP is one of the well-established companies in the oil and exploration industry. It was founded by William Knox D'Arcy. The company went through a variety of challenges including two bankruptcy threats in its earlier days of operation along with the First and Second World Wars. From that first uncertain search for oil in Persia BP has grown to become a global energy company. BP not only provides large quantities of oil but is also making strides along a promising path towards oil’ s alternatives.

The company’ s headquarters is located in London, the U. K. It has subsidiaries all over the globe with the main concentration in the U. S.A, Russia, Azerbaijan, Angola, the U. K, North Africa, Canada, the Middle East, and Asia. It is involved in the exploration, production, refining, and distribution of natural gas, petroleum, and other related products. Major competitors in the oil and exploration industry include Apache, Exxon Mobil, and ConocoPhillips (all based in the US), as well as LUKOIL along with Tatneft (Russia), National Iranian Oil Company, Royal Dutch Shell (the Netherlands), PETROBRAS (Brazil) also Saudi Aramco (Saudi Arabia) (BP, 2013; First Research, 2013). Horizontal Financial Statement AnalysisFinancial statement analysis is the analysis of financial information to understand the information and apply it in decision making.

The analysis can either be horizontal or vertical. Horizontal analysis compares specific financial items over different accounting periods. The two approaches used are absolute figures or percentages. The absolute approach is preferred when trying to decide whether a company is cautious or extreme in spending on certain items.

This method also helps in determining the outcomes of outside sways on the company. The second method is simply the conversion of the absolute figures into percentages. It is mainly worthwhile when matching small companies to large companies (Edmonds et al, 2006; Beranek, 1963).

References

BP., (2013), About BP, retrieved on 25 April 2013 from http://www.bp.com/sectionbodycopy.do?categoryId=2&contentId=7065607

Beranek, W., (1963), Analysis for financial decisions, Homewood, Ill, R. D. Irwin

Blecke, C. J., and Gotthilf, D. L., (1980), Financial analysis for decision making, 2nd ed Englewood Cliffs, N.J, Prentice-Hall

Edmonds, C., Edmonds, T., Olds, P., and Schneider, N., (2006), Fundamental Managerial Accounting Concepts, New York, McGraw-Hill Irwin

Bizminer, Industry Financial Reports, retrieved on 25 April 2013 from http://www.bizminer.com/products/analysis/industry/financial-ratios-profiles.php

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