🎯24Q1 Roundup

Companies are starting to release their 24Q2 reports. In this edition, I thought we would take the chance to compare some metrics of the 24Q1 period. As such, this edition will look a bit different from usual.

Getting Started

For simplicity, I am going to use the ticker symbol in the charts. The exception is for Aramco and PetroChina. They both have numeric tickers, which aren’t super recognisable, so I have made my own up for the sake of convenience.

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Comparing the companies, we see some interesting insights:

• Saudi Aramco is a beast with the highest Revenue, Net Profit and Net Margin.

• PetroChina has revenue similar to Aramco's, but it is unable to convert that to net profit successfully.

• ExxonMobil, Shell and TotalEnergies have similar conversation percentages.

• ConocoPhillips has an order of magnitude lower than Aramco but demonstrates that it is nearly as efficient in its conversion to net profit.

The net cashflow gives us insights into the total net of that activity.

• Aramco made money in its investing activities.

• BP was balanced in its cash flow with no change in its reserves; similarity COP was close to net 0 change.

• Most spent more on financing activities, whereas BP and TotalEnergies did not. This is because BP and TotalEnergies received large borrowings (see below, for example).

The current ratio is the current assets / current liabilities. As such, one or greater indicates a business has enough current assets to pay off its current liabilities in full. The average for the industry is clearly seen as 1.1 to 1.4. Aramco goes above and beyond.

In previous editions, I have made reference to the Liability to Asset (L/A) ratio. I think the Debt to Equity ratio is a better term as it is not constrained from 0 to 1. A lower Debt to Equity ratio is usually better as more of the assets are owned, and less is reliant on debt. However, debt is used as leverage, so it is not necessarily a bad thing. We can see quite a spread; notably, BP and Marathon had the highest ratio; they also had the lowest profit margin for the quarter.

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Cheers,

Connor

All data can be found on the respective investors websites. Refer to the newsletters linked up top. Then at the bottom of those newsletters will be the direct link to the source.