BHP Billiton Overview and Financial Analysis

Running head: BHP BILLITON 1
BHP BILLITON

BHP BILLITON 2
Table of Contents
BHP Billiton Overview..................................................................................................... 3
Review of the Auditor’s Opinion.......................................................................................... 3
Financial Ratios............................................................................................................... 3
Profitability.............................................................................................................. 3
Liquidity................................................................................................................. 3
Solvency................................................................................................................. 4
Market performance................................................................................................... 4
Analysis of the stock prices................................................................................................ 4
Comments..................................................................................................................... 5
Financial statements...................................................................................................... 5
References..................................................................................................................... 7

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BHP Billiton Overview
BHP formerly known as the BHP Billiton is one of the most important trading entity
based in Australia. The company is engaged in the business of multinational mining, petrol,
metals and petroleum products whose headquarters are situated in Melbourne Victoria. The
major feature of this company is that it is listed on London stock exchange, New York stock
exchange as well as Australian Stock Exchange. The company was founded in the year 1860
originally as a mining company. During the initial ventures the company was included in tin and
lead smelting in the Netherlands. The current revenue of the company is US$43638 with the
earnings of US$17.561 billion for the financial year 2018. Also, currently the company is
working with 62000 employees. The products that are majorly on the front platform of the
company are iron ore, coal, petroleum, copper, nickel, natural gas and uranium (BHP Billiton,
2018).
Review of the Auditor’s Opinion
From time to time the audit of the BHP Billiton is done by the KPMG, to conduct the
non-statutory services for the BHP Billiton. After analyzing the review presented by the auditors
it can be stated that the financial statements give the true and the fair view. The consolidated
statements have been prepared properly in accordance with the International Financial Reporting
Standards. The company has also included FRS 101 Reduced Disclosure framework. The
opinion presented by the auditors is unmodified (BHP Billiton, 2018).
Financial Ratios
The ratio analysis is a technique which determines the comparison of the companies on
the basis of different ratios and categories. The ratios are also classified on the basis of the
profitability, liquidity, solvency, efficiency as well as the market ratios.
Profitability
The profitability of the BHP Billiton is typically sound as the return on equity is 8.84% in
the year 2017 and 22.10% in the year 2019. This indicates that the company has the ability to
give good returns back to the investors. While comparing to the previous year the return on