Financial Ratio Analysis of Wood side Petroleum

            The aim of this report is to provide deep insights regarding the financial performance of Woodside Corporation. Woodside Energy is an Australian corporation whose headquarter is located in the city of Perth Australia. Woodside is the largest oil & gas production organization in Australia. The organization is listed in Australia Securities Exchange and generate a significant amount of profit. The organization was formed in the year 1954. The financial ratio analysis has been performed for analyzing the profitability, solvency and liquidity position of the Woodside Corporation. If the profitability analysis of Woodside is summarized than it can be said that the Woodside should improve its profitability condition. All the key profitability ratios such as ROE, ROA and Net profit margin, are showing a declining trend over the 5 year period. The organization is in the position to pay its short term obligations efficiently. The liquidity ratios of Woodside have experienced fluctuation in the 5 year period which might not be a good thing for the organization. It is suggested that the organization should maintain enough cash from which it can easily pay its loan back. The corporation’s amount of debt is low, and the organization can easily pay its long term obligations. It is suggested that the organization should maintain its capital structure in the upcoming years so that not only the cost of capital remains low but also the organization will able to attract more investors in the organization.