The financial performance of BHP Billiton is heavily dependent on commodity prices. The company's profitability ratios worsened from 2014 onwards due to plummeting commodity prices, resulting in losses in FY2016. However, the company took measures to reduce cash cycle and improve short-term liquidity. Long-term solvency ratios, including debt-to-equity and times interest earned, have shown deterioration. Despite increasing leverage, the company's financial position remains strong. It is expected that commodity prices will firm up in the near future, leading to better financial performance.