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 bp 2007 BP: Bp Plc

GRAPHS
Type a Ticker Symbol in the blue colored cell & press Enter>>> Millions of dollars - except today's price
(Year of report) (Company) (from Balance Sheet)
The cheaper the paper, the more valuable the information -- Peter Lynch Click here for instructions $9,883 Cash & Cash Equivalents
Accounts Receivable Change: Err:504 #N/A Accounts Receivable this year
Days waiting for payment this year= N/A Err:504 #N/A Accounts Receivable prior year
Days waiting for payment prior year= #N/A Err:508 $26,554 Inventories current year
Below 60 is good - below 45 is superb Err:508 $18,915 Inventories prior year
Inventories Change: 40% Whoa; wrong direction (Increasing) $80,202 Total Current Assets
Inventory Turnover Days this year = Err:504 Err:508 #N/A This Yr. Total Property Plant & Equip.
Compare with other companies in the industry ROE Iindicates
f Inventorieshow
are well
rising the
fastermanagement
than sales; competition or pricing
is doing with are likely
the money it the
hasproblem #N/A Priorhow
now. ROA and ROC indicate Yr. well
Total Property
managementPlant is
& Equip.
likely to do in the future with capit
Sales or Revenues Change: 6% Way to GO! (Increasing) $77,231 Total Current Liabilities
Sales to Accts Receivable Ratio. . . . . . . . . . . . . . $15,651 Long-term Debt this year
Sales to Inventories Ratio. . . . . . . . . . . . . . . . . . . Caution: Inventories growing faster than sales $11,086 Long-term Debt prior year
Cost of Sales #N/A 18923 Common Shares Outstanding this Yr.
[Cost of sales this year/Cost of sales prior year as a % change] N/A 19511 Common Shares Outstanding prior Yr.
$93,690 Total Stockholders Equity
Plant & Equipment Change: #N/A (from Statement of Earnings)
(Sales should be increasing as fast or faster). $291,438 Total Sales or Revenues this Year
$274,316 Total Sales or Revenues prior Year
Long-term Debt Change:
41% Wrong direction (Increasing) #N/A Cost of Sales this Year
Why are they taking on more debt? What is the debt to equity ratio? #N/A Cost of Sales prior Year
Debt to Equity Ratio is OK $31,611 Income before Taxes
Total Interest Coverage Pretax exceeds interest X times Err:504 Err:504 $20,845 This Yr. Net Income
[Pretax Profit + Total Interest Paid / Total Interest Paid] $22,315 Prior Yr. Net Income
Any number below 5 is worrisome. A number below 3 is very worrisome #N/A Total Interest Paid on Debt
Gross Profit Margin This year= #N/A Prior Year=
#N/A #N/A (from Statement of Cash Flows)
[Cost of Sales / Sales] Expect Gross Margin to be greater than 50% $24,709 This Yr.-Net Cash provided by Operations
Number of shares outstanding trend: Even -3% Right Direction (Decreasing) $28,172 Prior Yr. -Net Cash provided by Operations
[Curr. Yr. Shares/Prior Yr. Shares] A small change of up to about 2% isn't considered too consequencial $17,830 Acquisition of Property Plant & Equipment
Cash flow Growth -12% Cash flow should increase at the same rate as Sales - or greater $8,333 Total Dividends paid (if any)
[Curr. Yr. Cash from Operations/Prior Yr. Cash from Operations] Caution - Cashflow is not increasing at or better than the $42.11
SalesToday's Price per Share
rate
3.78 10 Year Bond rate
Free Cash Flow Margin 0% OOPS; anything less than 10 is bad news Data from MoneyCentral.MSN.com are used in this analysis
[Free Cash Flow / Sales] Free Cash flow per share -$0.08 CAUTION there is added risk because of neg. cash per share ###
Return on free cash flow - compare to yield on 10 yr. bond Caution Good - Free Cashflow return is greater than the bond
See yield
www.Investopedia.com for item definitions

(Return on Assets (ROA) ) 8.8% This measurement of profitability includes debt--an important factor
[Net Income / Total Assets] See Graph 6 for the reasons why
(Return on Equity (ROE) ) 22.2% This measurement of profitability does not include debt--an important factor
[Net Income / Total Equity] See chart 5 & 6 for the reasons why
Earnings Confidence Rating -- Measures quality of Earnings 1.19 The higher the number the higher the quality of Earnings. ###
[Net Cash from Operations / Net Income] One or less than one is very serious. Earnings quality is very low.
Net Income Net Cash
Compare - Net Income with Net Cash -7% -12% Oops - Net Cash is growing at a slower rate than Danger
Net Income ###
Caution - Net Income Caution
is -declining
Net Cash is declining Caution ###
Cash Position per Share: -$0.30 per share in cash beyond debt. A small or negative amount isn't considered too Good ###
[Net Cash / Shrs outstanding] Offers price support in falling market if positive. serious. But if cash is shrinking and debt is growing; Very Good
Oops; Cash Position is not meaningful - less than 20% of current price the company may be in weak financial shape. ###
LT Debt to Equity Ratio: 17% debt to equity. Long-term Debt is in normal range ###
[Long-term Debt / Total Equity] Normal Long-term Debt -- Less than 25% debt.

NOTE: Ratios are more meaningful if compared to other companies in the same industry.
Quick Ratio: 0.7 to 1 About 1:1 is normal. The higher the better. ###
[Total Assets - Inventories / Total Liabilities] e

Current Ratio 1.0 to 1 About 2:1 is normal for manufacturer. 1:1 normal for Utilities.
(also called Working Capital Ratio)
[Total Current Assets / Total Current Liabilities]
Inventory Turnover Ratio: #N/A to 1 The higher the ratio the better. Indicates quality merchandise & proper pricing.
[Cost of Sales / Inventory] Also note the number of days Inventories are held before they become a product and sold (See "Inventories" above).
###
Plant Turnover Ratio: #N/A to 1 The higher the ratio the better. If plant or equipment are added, sales should increase.
(Sales / Prop. Plant & Equip.) Be aware it takes time for a new plant to come on line and benefit sales. Check to see what the funds for PP&E were spent for.

Price to Sales Ratio: 2.73 The lower the amount the better. This is the amount invested for each dollar of sales. This ratio is Industry sensitive.
[Today's Price / Revenues per Share] This ratio will be higher for companies with high profit margins and growth. Compare to same industry companies. See the COMPETITORS box below.

NOTE: If there are large changes in year to year results, check to see if acquisitions have skewed the results of the analysis © Copyright 2000-2008 Bob Adams

(COMPETITORS TO: ) (BP: Bp Plc ) Insider and Institutional percentage ownership

If no data here see NOTE below BP CVX XOM RDS Industry Insider Ownership #NAME? Capitalization: LargeCap
#N/A #N/A N/A N/A N/A N/A #NAME?
#N/A #N/A N/A N/A N/A N/A ###
#N/A #N/A N/A N/A N/A N/A Institutional Ownership #NAME? ###
#N/A #N/A N/A N/A N/A N/A #NAME?
#N/A #N/A N/A N/A N/A N/A ###
#N/A #N/A N/A N/A N/A N/A Short Interest
#N/A Short Interest as a percentage of the float N/A
#N/A Short Interest is very high; look at other parameters; consider a sell
#N/A Is Short Interest % Increasing / Decreasing? Increasing Oops; Short Interest is increasing
#N/A Short Interest is somewhat high but decreasing--See if this trend continues
#N/A #N/A If Short Interest is increasing and the market sentiment is Bearish, discount the increase somewhat
#N/A Short Interest of greater than 20% is a warning sign a sizeable group of investors feel the company will drop in price
CVX = Chevron Corp. Compare the company being analyzed to its peers and to the industry.
XOM = Exxon Mobil Corp. The company data, shown abovet, will change colors, Ratio depending upon
of Insider Buys to Sells: #NAME? ###
RDS = the results. #NAME?
Industry = Major Integrated Oil & Gas Institutional Buying and Selling activity
Institutions buying shares of this company 32% If buyers are significantly greater than sellers,
Institutions selling shares of this company 55% that's positive. (20% or greater)
Institutions neutral on this company 13%
#N/A
Numerical Result of this analysis: #DIV/0! or #N/A indicates data is missing
This value summarizes the results of the analysis. It can be used as a broad measurement in comparing companies but
used only as a broad guide. The higher the number the stronger the company. Compare to company peers.
Maximum number of points possibl = 100
 70000

60000
Inventory
50000
Receivables
Revenues
40000

30000

20000

10000

2003 2004 2005 2006 2007

Return to Analysis Summary

If Receivables is going up, customers aren't paying their bills. But if Revenue is also
going up Receivables will likely go up also--and Inventories as well. If either goes up
faster than Revenues however, that's a danger signal. All three are expected to more or
less act in concert.

250000

200000 Revenue
Cost of Sales
150000 PP&E

100000

50000

2003 2004 2005 2006 2007

Return to Analysis Summary

Expect Sales to increase at or above the growth in Cost of Sales. Also, if Property,
Plant & Equipment (PP&E) is increasing Revenues should also increase. PP&E might
trail Revenues a year or two if the money is being spent on new buildings, etc.--large
projects. Allow for completion time.
 3.00
2.50
2.00 Inventory Ratio
1.50
1.00
0.50
0.00
2003
2004
2005
2006
2007

A ratio showing how many times a company's inventory is sold and replaced each year. The higher
the ratio the better. It indicates quality merchandise & proper pricing.

Return to Analysis Summary

 150000

100000 Property Plant &

Equipment (PP&E)
Free Cashflow
50000

-50000

-100000
2003 2004 2005 2006 2007

If PP&E is increasing markedly it may cause Free Cash Flow to decrease--even to the point of causing
it to become negative. The question to ask is: What is the company spending it's cash on and will that
expenditure likely result in increasing market share and sales?
Also compare PP&E with Capital Expenditures as a Percentage of Sales--see the graphic below.

Return to Analysis Summary

8.0%
7.0%
6.0% Capital Expenditures as %
of Sales
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2003 2004 2005 2006 2007

If capital is spent on upgrading equipment, factory, etc., sales should also increase. Be aware there
can be a lag between the expenditure and an increase in sales. It takes time to complete large
projects.
Return to Analysis Summary
 30%

25%
Gross Margin
Operating Margin
20%
Net Profit Margin

15%

10%

5%

0%
2003 2004 2005 2006 2007

Return to Analysis Summary

Gross Margin is a company's total revenue, minus cost of goods sold divided by the total sales
revenue, expressed as a percentage. The gross margin represents the percent of total sales
revenue that the company retains after incurring the direct costs associated with producing the goods
and services sold by a company. The higher the percentage, the more the company retains on each
dollar of sales to service its other costs and obligations.
It's the relationship between Revenues and the Cost of Revenues. Stability and an increasing value is
an indication of good management--an indication of efficient use of facilities and labor.

The operating profit margin shows how successful a company’s management has been in
generating income from the operation of its core business. Net income is the money that's left over
after all othr expenses have been paid. It indicates how effectively management runs the company.
Operating Income / Sales

Net Profit Margin indicates how much profit a company makes on each dollar it generates in
Revenues; again, a measurement of management..

What to look for: To get a better picture when looking at margins, alway compare a company to its
peers and industry average. (The Analisys section of this form shows year over year short term
comparisons in the "Competitors" area as well as competing companies.)
 40000

20000
Cash from Operations
Free Cash Flow
Cash Flow
-20000

-40000

-60000

-80000

-100000
2003 2004 2005 2006 2007

Observe the relationship of these values when compared to Cash from Operations.
1) Cash Flow is a measure of financial performance calculated as Cash From Operations minus capital expenditures.
Cash Flow should be rising. If dropping, that's a serious warning sign
Some believe that Wall Street focuses myopically on earnings while ignoring the "real" cash that a firm
generates. Earnings can often be clouded by accounting gimmicks, but it's tougher to fake cash flow.
For this reason, some investors believe that Free Cash Flow gives a much clearer view of the ability to
generate cash--and thus profits.

2) Free Cash Flow is what is left over after all bills have been paid. It can be used by management for
any purpose--buy back shares, pay a dividend, invest in another company, acquire a company, etc. It
is important to note that negative free cash flow is not bad in itself. If free cash flow is negative, it could
be a sign that a company is making large investments. If these investments earn a high return, the
strategy has the potential to pay off in the long run. Observe the PP&E chart below to see the
relationship between PP&E and Free Cashflow

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100000

95000
Property Plant &
Equipment (PP&E)
90000

85000

80000

75000
2003 2004 2005 2006 2007
 30%

25%
Return on Assets (ROA)
Return on Equity (ROE)
20%
Return on Capital (ROC)

15%

10%

5%

0%
2003 2004 2005 2006 2007

Return on Assets (ROA) and Return on Capital (ROC) are arguably better indicators of the
profitability of a company, compared to Return on Equity (ROE). Both ROA and ROC include long
term debt in the equation and ROE does not. Thus, ROA and ROC provide a more true picture. Debt
increases ROE. How? -- The use of debt lowers equity, and if equity is lowered more than net income,
ROE will increase. On the other hand, ROA and ROC are lowered by debt--the interest expense
lowers net income, which lowers ROA and ROC.
ROE indicates how well the management is doing with the money it has now. ROA and ROC indicate
how well management is likely to do in the future with capital.

Both ROA and ROC can be used an the Implied Growth Rate--a realistic growth rate expected in the
next few years. Normally ROA is a little more conservative as a projected growth rate.
Return to Analysis Summary
Watch the relationship between ROE, ROA and ROC, and debt.

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16000
14000
12000
Long-term Debt
10000
8000
6000
4000
2000

2003 2004 2005 2006 2007

Return to Analysis Summary

 30000

25000
Net Income
20000 Cash Flow

15000

10000

5000

2003 2004 2005 2006 2007

Use extreme caution when Net Income exceeds Operating Cash Flow.

Return to Analysis Summary

 1.20

1.00
Current Ratio
0.80 Quick Ratio

0.60

0.40

0.20

0.00
2003 2004 2005 2006 2007

Current Ratio is also known as the "Liquidity Ratio".

The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities
(debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current
ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the
company would be unable to pay off its obligations if they came due at that point. If decreasing, the
companie's financial position is weakening.

Quick Ratio is also known as the "acid-test ratio". It is an indicator of a company's short-term liquidity. The quick
ratio measures a company's ability to meet its short-term obligations with its most liquid assets. The higher the
quick ratio, the better the position of the company.

The quick ratio is more conservative than the current ratio because it excludes inventory from current assets.
Inventory is excluded because some companies have difficulty turning their inventory into cash. In the event that
short-term obligations need to be paid off immediately, there are situations in which the current ratio would
overestimate a company's short-term financial strength. If decreasing, the companie's financial position is
weakening.

NOTE: Ratios are more meaningful if compared to other companies in the same industry.

Return to Analysis Summary