Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)

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Financial Analysis of Royal Dutch Shell

Authors
Jiashu Zhou1, *
1Columbia International College - Ansliewood Building, 1003 MAIN STREET WEST Hamilton, Ontario, L8S 4P3, Canada
*Corresponding author. Email: 2024101030YDG@cic.care
Corresponding Author
Jiashu Zhou
Available Online 17 September 2025.
DOI
10.2991/978-94-6463-835-6_38How to use a DOI?
Keywords
Energy transformation; Financial resilience; Capital structure
Abstract

The financial performance of Royal Dutch Shell (2021-2023) highlights the opportunities and challenges of the energy industry in the transition period. Affected by geopolitics, carbon neutrality policy and oil price fluctuation, Royal Dutch Shell’s net profit rebounded from a loss of 21.68 billion pounds in 2020 to a profit of 42.03 billion pounds in 2023. However, due to the increase in renewable energy investment in 2023, the profitability indicators (ROCE and net profit rate) all fell back, reflecting the short-term gains squeezed by strategic transformation. Liquidity management has achieved remarkable results, and the steady improvement of the current ratio (1.35 to 1.40) and quick ratio (1.08 to 1.15) highlights the efficiency of working capital. However, the high debt ratio (125%) exposes the risk of debt dependence. To support the energy transformation, Royal Dutch Shell cut its dividend payment rate (31.10% to 20%), and the fluctuation of P/E ratio (15.44 to 8.68 to 9.68) reflects the market’s vacillation in its long-term transformation confidence. This study shows that Royal Dutch Shell needs to balance traditional energy benefits, debt management, and green investment to maintain its competitiveness in the energy revolution and win the favour of investors.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
17 September 2025
ISBN
978-94-6463-835-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-835-6_38How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jiashu Zhou
PY  - 2025
DA  - 2025/09/17
TI  - Financial Analysis of Royal Dutch Shell
BT  - Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
PB  - Atlantis Press
SP  - 360
EP  - 373
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-835-6_38
DO  - 10.2991/978-94-6463-835-6_38
ID  - Zhou2025
ER  -