Probe - Accounting, Auditing and Taxation

Comparative Financial Analysis of HSBC Holdings, Royal Dutch Shell, and Unilever

Hanxu Yu

DOI: https://doi.org/10.59429/paat.v5i1.1698

Keywords: Comparative Analysis; Financial Performance; Liquidity; Profitability; Market Value

---

Abstract

This article provides a comprehensive comparative financial analysis of HSBC Holdings, Royal Dutch Shell, and Unilever between 2017 and 2021. Utilising financial ratios, the analysis enc ompasses liquidity, profitability, and market value assessments. Over the five-year period, all three companies demonstrated increasing liquidity positions, with HSBC Holdings outperforming its peers. Profitability analysis revealed Royal Dutch Shell's consistent net profit margin and returns on assets and equity, while Unilever displayed progressive profitability growth. In terms of market value, HSBC Holdings and Unilever experienced remarkable increases in earnings per share, while Royal Dutch Shell maintained stability. The article concludes with investment recommendations favouring all three companies for income-oriented investors, due to their strong financial performance and attractive dividend yields.

---

References

Altamuro, J., & Iannotta, G. (2009). Financial Analysis and Reporting. London: Routledge.

Bierman, H., Jr., & Smidt, S. (2012). The Financial Numbers Game: Detecting Creative. Accounting Practices. Cambridge, MA: MIT Press.

Gaffikin, M., & Neely, A. (2018). The Strategic CFO: Creating Value in a Dynamic Market Environment (2nd Ed.). Hoboken, NJ: Wiley.

Healy, P. M., & Palepu, K. G. (2001). Business Analysis and Valuation: Using Financial Statements (2nd Ed.). Cincinnati, OH: South-West Cengage Learning.

Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2019). Intermediate Accounting (17th ed.). New York: Wiley.

Koller, T., & Goedhart, M. (2011). Valuation: Measuring and Managing the Value of Companies (5th Ed.). Hoboken, NJ: Wiley.

Sunder, S. (2016). Financial Reporting and Analysis: Using Financial Accounting Information (11th Ed.). Mason, OH: South-Western Cengage Learning.

U.S. Securities and Exchange Commission. (2019). Financial Reporting and Analysis. SEC.gov.https://www.sec.gov/investor/ pubs/begfina.htm.