英语论文网

circumstances. S&P noted Shell's reserves replacement success and said current major projects should sustain its production plateau in the next decade”.

(Ft.com, September 2008)

c. Aims and Objectives

The aims and objectives contains the comparison of the financial performance of the petroleum sector to assess the worth of the company in its operational industry .To get an idea about the attitude of the management towards the operations of the company by assessing the company’s cash flow position compared to its profits. Also to analyze the risks faces by the company I will take in to account Solvency, Liquidity and Capital structures.

d. Research Approach

ACCA provides a complete guide about different sections of the report, and also this provides the opportunity to plan and think to allocate my time carefully. This planning will help me to concentrate on each section of the report so that I can focus on core and important areas of the report. This also enables me not to overspend my time in explaining any section of the report. Information mainly collected from annual reports of the company and also different sort of other sources like ACCA text books, internet, newspaper, library etc.

Traditional ratio analysis has been used to measure and compare the financial performance of the company over last 3 years with its rivals.

Ratio analysis will focus on the following key ratios:

§ Profitability Ratios

This ratio is the reflection of how well the business is performing in term of profits in order to pay the shareholders. Key ratios are:

a. Gross Profit Margin

b. Operating Profit Margin

c. Return on Average Capital Employed

§ Liquidity Ratios

Liquidity ratio refers to the state of an asset’s nearness to cash to meet business short term obligations as they fell due. Key ratios

a. Current Ratio

b. Quick ratio (Acid Test Ratio)

§ Efficiency Ratios

These ratios show how efficiently the business is employing those resources invested in fixed assets and working capital. Ratios are:

a. Debtor Days

b. Creditor Days

§ Risk Ratios

These ratios are used to assess how healthy and sound the business is in term of capital or finances. Ratios are

a. Gearing Ratio

b. Interest Cover

§ Investors Ratios

Both present and prospective shareholders look at these ratios to measure their return and to make economic decisions. Key ratios are

a. Earnings per Share

b. Diluted Earnings per Share

II. INFORMATION GATHERING

a. Sources of Information Used

The information has been collected from different secondary sources for the preparation of this project. Main secondary sources which are use to gather information is as follows:

§ Annual Accounts: The annual audited accounts of Shell are the main secondary source of information to use in this project. These annual audited a本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。