Comparative Appraisal: Unveiling Financial Position, performance, Cash flows and Valuation of BP PLC and Total

Abstract

The study analyses BP PLC with Total's financial performance, financial valuation, position liquidity, solvency, and cash flow from 2020 to 2023 in the complex and dynamic oil sector. Financial statements are analysed to determine revenue trends, profitability, and cost management. Liquidity and solvency measurements are compared to determine each firm's ability to meet its current and future financial obligations. Total outperforms BP PLC financially, according to statistics. Total has better liquidity ratios, steady solvency, and expanding revenues. Unlike BP PLC's fluctuating financial indicators and cash flow, Total's great financial performance relies on cash flow management. The financial valuation study values BP PLC more than Total due to its larger EV, P/E, and DCF. Better indications suggest BP's market dominance and future expansion. Total may be ignored because of its lower P/E ratio, but it has strong fundamentals and might be a solid buy for value-focused investors. Total's SWOT analysis shows its strategic advantages, including renewable energy investment and risk management, whereas BP PLC confronts regulatory challenges and higher operational costs. The analysis acknowledges limitations such as utilising just publicly available financial data and ignoring external market forces. The analysis suggests that investors, lenders, creditors, and debtors select Total due to its better financial status. A comparison study recommends Total's operating efficiency and stability. Future research might include business dynamics and geopolitics to enhance these findings. This study helps assess BP PLC and Total's financial health and strategy in the fast-changing energy business.