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GUAYANA MODERNA
https://revistasenlinea.saber.ucab.edu.ve/index.php/guayanamoderna/index
Guayana Moderna, N° 13
Enero-Junio, 2024
Venezuela
Artículos
Fecha de recepción: 20-11-2023
Fecha de aceptación: 15-12-2023
pp.: 9-30
Análisis comparativo de la competitividad de
Petróleos Mexicanos y Equinor
1
Comparative Analysis of the Competitiveness of
Petróleos Mexicanos and Equinor
Ruiz Hernández, Jaime Antonio
Facultad de Economía, Contaduría y Administración. Universidad Juárez del Estado de Durango.
Correo: jaime_r9@hotmail.com
ORCID: https://orcid.org/0000-0003-2689-6952
Sánchez Cano, Julieta Evangelina
Facultad de Economía, Contaduría y Administración. Universidad Juárez del Estado de Durango.
Correo: julieta.san2009@ujed.mx
ORCID: https://orcid.org/0000-0002-1735-0483
Villa Luna, Candy
Facultad de Economía, Contaduría y Administración. Universidad Juárez del Estado de Durango.
Correo: candy.villa@ujed.mx
ORCID: https://orcid.org/0000-0003-4698-0887
Resumen
Este estudio realiza un análisis comparativo de la competitividad entre las empresas Petróleos Mexicanos
y Equinor, considerando como principales indicadores de competitividad los ratios financieros de liquidez,
actividad, endeudamiento y rentabilidad, obtenidos a partir de los estados financieros consolidados de
ambas empresas desde 2008 hasta 2019 Metodológicamente, la investigación aplica un análisis de tendencia
lineal para cada indicador, basado en modelos de regresión que permiten identificar patrones. Este enfoque
permite una comprensión más profunda de la competitividad en el sector energético mundial,
proporcionando información valiosa para las partes interesadas y los responsables políticos.
Palabras clave: Pemex, Equinor, sector energético, competitividad.
Abstract
This study carries out a comparative analysis of the competitiveness between the companies Petróleos
Mexicanos and Equinor, considering as main indicators of competitiveness the financial ratios of liquidity,
activity, indebtedness, and profitability, obtained from the consolidated financial statements of both
companies from 2008 to 2019 Methodologically, the research applies a linear trend analysis for each
indicator, based on regression models that allow the identification of patterns. This approach enables a
deeper understanding of competitiveness in the global energy sector, providing valuable insights for
stakeholders and policy makers.
Keywords: Pemex, Equinor, energy sector, competitiveness.
1
This article is the result of the research “Energy Crisis within the framework of the 21st Century Crisis” which is part
of the PAPIIT Project IN301723 “The Crises of the 21st Century: A Discussion on the Nature of Contemporary
Capitalism” UNAM.
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Guayana Moderna, N° 13
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1. Introduction
In the dynamic global economic context, the
oil industry plays a crucial role.
Understanding the competitiveness of
companies in this sector is essential to grasp
market dynamics and business strategies.
This study focuses on Petróleos Mexicanos
(PEMEX) and Equinor, two giants of the oil
industry which, despite operating in different
national contexts and historical trajectories,
are significant models within the energy
sector. PEMEX, a key player in the Mexican
economy, and Equinor, known for its focus
on efficiency and sustainability, present
unique comparative cases in terms of
business competitiveness (Petróleos
Mexicanos, 2019; Public Finance Studies
Center, 2014; Romo, Pérez, and Jiménez,
2013).
The objective of this analysis is to evaluate
and compare the trends in key financial
indicators of PEMEX and Equinor from 2008
to 2019. This study will delve into vital
aspects such as liquidity, activity,
indebtedness, and profitability, essential for
understanding the financial health and
competitiveness of these companies in a
challenging global market. The analysis aims
to identify factors influencing stability and
growth in the energy sector, noted for its
volatility and the constant evolution of
market dynamics.
This study seeks to understand how PEMEX
and Equinor, as major producers in the oil
industry, have adapted and thrived in an
uncertain global economic climate. The
results will particularly interest investors,
policymakers, and other stakeholders in the
oil sector. An exploration of the similarities
and differences between these companies
yields valuable insights into the effects of
national conditions and corporate policies on
business competitiveness.
In the historical context of significant shifts
in the global economy, from the financial
crisis to contemporary challenges,
understanding the strategies enabling oil
companies to stay relevant and effective is
crucial. The concept of competitiveness has
been examined from various perspectives in
the oil sector, emphasizing the importance of
efficient financial management and the
ability to adapt to changing market
conditions (Acosta and Medina, 1999;
Sánchez, 2009; Sánchez, Peña and Millán,
2016).
PEMEX, as a state-owned entity in Mexico,
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and Equinor, epitomizing the Norwegian
approach, embody two distinct yet critically
important strategies within the global oil
industry. This study aims to enrich the
understanding of management and business
strategies in the energy sector, underscoring
the challenges and opportunities that these
entities encounter in the dynamic global
marketplace.
The study examines liquidity, activity, debt,
and profitability indicators to illuminate the
strategies enabling PEMEX and Equinor to
sustain their competitive edge. This method
lays a robust groundwork for grasping not
just the singular financial health of these
corporations but also for discerning broader
trends and practices prevalent in the
international oil market.
2. Methodology
Following the methodology proposed by
Acosta (1999), this research concentrates on
the impact that fundamental financial
management decisions have on company
competitiveness. It investigates the influence
of investment and financing decisions in
creating competitive advantages for PEMEX
and Equinor. The importance of adopting
suitable financial strategies in the oil industry
is emphasized, aligning with the theory that
competitive companies typically demonstrate
a higher level of investment and sharper
financial management.
Incorporating key findings from the likes of
Acosta (1999), Cardona et al. (2015), and
Labarca (2007), the analysis selected four
fundamental financial indicators: liquidity,
activity, debt, and profitability. These
indicators are pivotal in evaluating the
financial viability and gauging the
competitive stance of firms in the petroleum
industry.
2.1. Formulas for Calculating Financial
Ratios
In this study, four key financial ratios are
analyzed: liquidity, activity, debt and
profitability. These financial ratios are
relevant to evaluate the competitiveness of
companies in general, and in particular, the
oil companies of Mexico and Norway, the
object of this study. According to various
authors, including Acosta and Medina
(1999), Gitman and Zutter (2012), Cardona,
Martínez, Velásquez and López (2015), and
Van Horne et al. (2010), these reasons have
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an important relationship with business
competitiveness.
The formulas for calculating financial ratios
conform to the proposals of Gitman and
Zutter (2012) and Van Horne et al. (2010).
They are defined as follows:
1. Liquidity Ratio (Current Liquidity):
• Formula: 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
• This ratio measures the company's
ability to cover its short-term
obligations with its current assets.
2. Activity Ratio (Asset Turnover):
• Formula: 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠
𝑀𝑒𝑟𝑐ℎ𝑎𝑛𝑑𝑖𝑠𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
• This ratio indicates the efficiency
with which the company uses its
assets to generate sales.
3. Debt Ratio:
• Formula:𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
• This ratio shows the proportion of the
company's assets that are financed by
debt.
4. Profitability Ratio (Net Margin):
• Formula:𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
𝑆𝑎𝑙𝑒𝑠
• This ratio evaluates how much net
profit is generated for each unit of
sale.
2.2. Data Collection and Application
For PEMEX and Equinor, data was collected
from their annual financial reports for the
period 2008 to 2019. This data was used to
calculate the financial ratios mentioned
above. Analysis of these indicators provides
a detailed view of the financial health and
operational efficiency of both companies
over time.
2.3. Linear Trend Analysis
After collecting annual financial data from
PEMEX and Equinor for the period 2008-
2019, the linear trends of the four key
indicators were analyzed: liquidity, activity,
debt and profitability. The purpose of this
analysis is to identify patterns and trends in
the financial performance of both companies
over time, providing a basis for future
interpretations and projections.
First, an exploratory analysis of the data was
performed, including reviewing consistency
and preparing the data for statistical analysis.
This step was crucial to ensure the quality and
reliability of the data before proceeding with
more advanced analysis methods (Gujarati &
Porter, 2009).
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Subsequently, a linear regression model was
applied to each time series corresponding to
the financial indicators. Linear regression, a
statistical method widely recognized for its
effectiveness in identifying relationships and
trends in historical data, was used to model
and quantify the trends observed in each
indicator (Bowerman, O'Connell, & Koehler,
2007). This technique allows the slope and
intercept to be calculated for each indicator,
providing a clear measure of the direction and
magnitude of trends over time.
The quality of fit of the linear regression
models was evaluated using the coefficient of
determination and a residual analysis. These
evaluations help verify the accuracy of the
models and their suitability to represent
trends in the data (Gujarati & Porter, 2009).
The results obtained from this linear trend
analysis will lay the foundation for the next
section of the study, where these trends will
be interpreted in the context of the
competitiveness and operational efficiency of
PEMEX and Equinor.
The methodology implemented in this study,
which includes the calculation of essential
financial ratios and the analysis of linear
trends, has established a solid foundation for
a detailed and comparative evaluation of the
financial performance of PEMEX and
Equinor. The subsequent section, "Analysis
and Results", will be dedicated to the
interpretation of these trends, examining their
influence on the competitiveness and
operational efficiency of the two companies
within the scope of the international energy
market.
3. Analysis and Results
The central objective of this section of the
study is to present and examine in detail the
results obtained from the analysis of linear
trends of the financial indicators of PEMEX
and Equinor. It focuses on four key
indicators: liquidity, activity, debt and
profitability, each reflecting vital aspects of
the performance and financial position of
these companies in the international energy
sector during the period between 2008 and
2019.
The analysis begins with an individual
evaluation of each financial indicator. For
each of them, the data will be presented, the
temporal trends illustrated through graphs
will be analyzed and their meaning will be
interpreted in terms of financial health and
operational efficiency. This part of the study
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not only highlights the financial history of
each company, but also provides a basis for
understanding their management and
strategies in response to energy market
dynamics.
Subsequently, an analytical comparison will
be made between PEMEX and Equinor. This
comparison aims to identify the differences
and similarities in the financial patterns of
both companies, offering a comparative view
that highlights their respective strengths and
weaknesses in the context of the global oil
industry.
3.1. Circulating Ratio
3.1.1. PEMEX Current Ratio
The analysis of liquidity, reflected through
the Current Ratio, reveals a worrying trend
for PEMEX. As seen in graph 1 (below), the
Current Ratio has decreased consistently
during the analyzed period. The negative
slope of the trend line, calculated using linear
regression, indicates an average annual
reduction of 0.11 points in the Current Ratio,
suggesting a decrease in PEMEX's liquidity.
This decline could be indicative of a
declining ability to settle current liabilities
with available current assets.
Graph1. PEMEX Current Ratio
Source: Own elaboration with data from PEMEX.
The determination coefficient 𝑅2 of 0.7818
implies that approximately 78% of the
variability observed in PEMEX's Current
Ratio can be explained by time, which
y = -0.1063x + 215.13
R² = 0.7818
0.00
0.50
1.00
1.50
2.00
2008 2010 2012 2014 2016 2018
Year
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denotes a significant relationship between the
passage of years and the decrease in liquidity.
The persistence of this trend may have
significant implications for the financial
health of the company, potentially indicating
challenges in managing working capital and
possible difficulties in maintaining short-
term solvency.
This decreasing pattern in PEMEX's liquidity
requires attention and could be a starting
point for further investigation into the
company's asset and liability management
policies. Additionally, it would be advisable
for the company to consider strategies to
improve its liquidity, such as optimizing
inventory management, renegotiating
payment terms with suppliers, or reviewing
its credit policies for customers, in order to
ensure greater financial flexibility.
3.1.2. Equinor Current Ratio
The analysis of Equinor's Current Ratio
indicates a general upward trend in its
liquidity, a positive aspect that suggests an
improvement in the company's ability to meet
its short-term obligations. The increasing
trend, represented by the positive slope of the
regression line, denotes an annual increase of
0.04 points on average, which is adjusted to
0.06 points when applying a moving average.
This increase is a sign of financial strength
and could be interpreted as the result of
efficient management of current assets and
liabilities. As seen in graph 2 (below).
Graph2. Equinor Current Ratio
Source: Own elaboration with data from Equinor.
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The variability explained by the linear
regression model, with a value of 0.3526, was
considered low, which could indicate that
other factors, in addition to time, influence
the Equinor Circulating Ratio.
This sustained growth in Current Ratio is
encouraging, especially in a sector where the
volatility of oil prices and market fluctuations
can significantly impact companies' liquidity.
Equinor's ability to improve its liquidity in
the face of such challenges is a sign of its
resilience and financial adaptability.
3.1.3. Comparison of the Current Ratio
between PEMEX and Equinor
PEMEX's Current Ratio has shown a
decreasing trend, with a negative slope in the
linear regression, indicating an average
annual reduction of 0.11 points. This
sustained pattern suggests that PEMEX's
ability to cover its short-term liabilities with
liquid assets has weakened over time. The
determination coefficient of 0.7818 indicates
that the majority of the variability of the
Current Ratio can be attributed to temporary
factors, which could reflect structural
challenges in the company's liquidity
management.
On the other hand, Equinor has experienced
an upward trend in its Current Ratio, with an
average annual increase of 0.04 points.
The comparison between PEMEX and
Equinor reveals two different financial
trajectories. While PEMEX has faced a
progressive decline in its liquidity, which
could lead to potential financial difficulties,
Equinor has improved its liquidity position,
suggesting more robust financial
management and a greater ability to meet
immediate obligations. This difference in
liquidity trends could be indicative of
differentiated working capital management
strategies and each company's ability to
respond to financial pressures.
3.2.Activity Ratio
3.2.1. The Reason for PEMEX Activity
The Inventory Turnover Index or Activity
Ratio is an indicator of operational efficiency,
especially in an oil company where inventory
management significantly influences
profitability. Chart 3 (below) for PEMEX
indicates a general upward trend in inventory
turnover, which implies that the company has
been improving its efficiency.
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Graph3. PEMEX Activity Ratio and its tendency
Source: Own elaboration with data from PEMEX.
Although the coefficient was low, suggesting
significant variability not explained by the
model, the upward trend indicated by the
regression equation in inventory turnover
should not be discarded. This result implies
the possibility of underlying factors not
captured by the model.𝑅2
An increasing ratio means that PEMEX has
been using its inventories more effectively to
generate sales, which is essential in a context
where storage costs and the risk of
obsolescence can significantly impact
liquidity and financial results.
This increase in inventory turnover is
positive for PEMEX, as it indicates a
potential reduction in inventory holding costs
and a faster response to changing market
conditions.
3.2.2. Equinor's Reason for Activity
Equinor's inventory management efficiency,
represented by its Activity Ratio, has been
trending upward, indicating more efficient
use of inventories to generate sales. The
increasing trend, suggested by the linear
regression with a value of 0.5043, in
inventory turnover is particularly notable in
Figure 4 (below), as it indicates an improved
ability of the company to manage its
y = 0.2614x - 510.03
R² = 0.0399
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2008 2010 2012 2014 2016 2018
Year
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resources. This may be due to a number of
strategic factors, such as optimizing the
supply chain, implementing more efficient
inventory management systems, or quickly
responding to changes in market demand.
Graph4. Equinor Activity Ratio and its trend
Source: Own elaboration with data from Equinor.
Equinor's ability to continually improve its
inventory turns is a positive indicator of its
ability to adapt to market conditions and
effectively manage its resources.
3.2.3. Comparison of the Activity Ratio
between PEMEX and Equinor
By examining the Inventory Turnover Index
between PEMEX and Equinor, different
approaches to inventory management are
identified that reflect variations in
operational efficiency. PEMEX has recorded
a slight but steady improvement in inventory
turnover, suggesting progressive efforts
toward more effective management. In
contrast, Equinor exhibits a more substantial
increase in its Inventory Turnover Index,
which points to a more dynamic and adaptive
management of its resources.
This marked difference between PEMEX and
Equinor highlights the importance of
investing in advanced management
technologies and efficient supply chain
y = 2.4573x - 4927.4
R² = 0.5043
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
2008 2010 2012 2014 2016 2018
Year
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strategies. While PEMEX needs to
consolidate its focus on operational
innovation to continue its improvement
trajectory, Equinor is already reaping the
benefits of a strategy that allows it to respond
agilely to market demands.
Finally, efficient inventory management
emerges as a critical differentiator for
profitability and liquidity. Equinor is
projected to be better equipped to meet the
challenges of a volatile environment, while
PEMEX must strive to achieve and maintain
the operational efficiency that Equinor has
demonstrated.
3.3. Debt Ratio
3.3.1. PEMEX's Debt Ratio
PEMEX's capital structure, reflected in its
Debt Ratio, shows a trajectory of sustained
increase. The linear regression that models
this trend presents an equation with a positive
slope and a coefficient of determination of
0.8642. This high indicates that the
increasing trend in debt is not random, but
rather responds to a constant financial
dynamic over time, with an average increase
of 0.09 points per year. Chart 5 (below)
shows the graphical representation of this
trend, offering an image of the progression of
PEMEX's indebtedness over the years.
Graph5. PEMEX Debt Index and its trend
Source: Own elaboration with data from PEMEX.
y = 0.0911x - 182.14
R² = 0.8642
0.00
0.50
1.00
1.50
2.00
2.50
2008 2010 2012 2014 2016 2018
Year
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This growth in the index could suggest a
financial strategy that has tended towards the
acquisition of debt as a means to boost
investments and finance the company's
operations. While leverage can be a strategic
tool for growth and expansion, the upward
pattern requires careful analysis to ensure
that the level of debt remains within
manageable limits and does not compromise
the long-term financial stability of the
company.
PEMEX's ability to manage its debt will be
crucial in its future trajectory, especially in a
sector such as energy, where price volatility
can significantly impact the company's
ability to generate stable cash flows. The
trend identified in the debt ratio analysis
underscores the importance of strategic
financial planning and prudent risk
management to ensure PEMEX's financial
sustainability in the future.
3.3.2. Equinor's Debt Ratio
Equinor's Debt Ratio reflects the company's
financing practices and capital strategy over
time. Graph 6 (below) presents an overview
of the evolution of indebtedness and the
general trend that has been observed.
Graph6. Equinor Debt Ratio
Source: Own elaboration with data from Equinor.
The linear regression model for Equinor
shows a slight increase in the debt ratio year
after year. However, the low indicates that the
linear trend alone does not fully explain the
y = 0.0015x - 2.4508
R² = 0.0435
0.58
0.59
0.60
0.61
0.62
0.63
0.64
0.65
0.66
0.67
0.68
0.69
2008 2010 2012 2014 2016 2018
Year
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variability of the index. This increasing trend,
although modest, suggests that Equinor has
been gradually increasing its financial
leverage.
3.3.3. Comparison of the Debt Ratio
between PEMEX and Equinor
When comparing the Debt Ratio between
PEMEX and Equinor, we find two different
financial panoramas. PEMEX has shown an
increasing trend sustained in its indebtedness,
which is represented by a linear regression
with a positive slope and a remarkably high
coefficient of determination. This indicates
that PEMEX's financing strategy has relied
heavily on the acquisition of debt over time,
reflecting a possible pursuit of growth and
expansion through financial leverage.
On the other hand, Equinor presents a much
more modest trend in its debt ratio, with a
lower. This suggests that Equinor has
maintained a prudent financing policy,
increasing its debt more gradually. Equinor's
conservative management may reflect a
deliberate strategy to maintain financial
stability and avoid excessive risks associated
with high levels of debt.
The PEMEX graph clearly illustrates the
upward trend in its debt, which should be
interpreted as an indicator of a possible
aggressive growth strategy. In contrast,
Equinor's graph shows a much more stable
debt profile, with an eye toward financial
stability and long-term sustainability.
3.4.1. The Profitability Ratio
3.4. The Profitability Ratio of PEMEX
The Gross Profit Margin Index or
Profitability Ratio is essential to evaluate
PEMEX's ability to convert its sales into
gross profits, a direct reflection of operational
efficiency and cost management. Graph 7
(below) shows a decreasing trend in this
index for PEMEX, which shows challenges
in preserving profit margins against income.
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Graph7. PEMEX Profitability Index and its trend
Source: Own elaboration with data from PEMEX.
The negative trend in profitability, indicated
by a downward slope in the trend line and an
initial coefficient of determination of 0.3567,
reveals that additional factors over time affect
PEMEX's profitability.
A decrease in gross margin indicates that
PEMEX could be facing an increase in costs
of goods sold or a decrease in operational
efficiency. This trend underscores the need
for a more effective strategy for cost
management and evaluation of operations to
improve profitability.
3.4.2. Equinor's Profitability Ratio
Analysis of Equinor's Profitability Ratio
reveals an incremental trend in profitability,
suggesting a gradual improvement in the
effectiveness with which the company
converts sales into gross profits. The graphic
representation of this evolution, as can be
seen in graph 8 (below), shows a positive
progression throughout the period studied.
y = -0.0339x + 68.611
R² = 0.3567
-0.20
-0.10
0.00
0.10
0.20
0.30
0.40
0.50
0.60
2008 2010 2012 2014 2016 2018
Year
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Graph8. Equinor Profitability Index and its trend
Source: Own elaboration with data from Equinor.
Despite an upward trend, the low coefficient
of determination of 0.0893 suggests that
factors other than time could be affecting this
index.
This increasing trend in gross profit margin is
indicative of effective cost management and
an operating strategy that enables revenue
generation in excess of incremental costs.
The sustained increase in gross margin is an
encouraging sign of Equinor's ability to
maximize its profits, positioning it favorably
in the energy industry, where cost
optimization and operational efficiency are
critical to long-term success.
3.4.3. Comparison of the Profitability
Ratio between PEMEX and Equinor
The comparison between the profitability
ratios of PEMEX and Equinor reveals
significant contrasts in their financial
dynamics, with profound implications for
their positioning and strategies within the
global energy market.
The PEMEX Gross Profit Margin Index
presents a decreasing trend. This trend
suggests increasing pressure on PEMEX's
profit margins, possibly due to an increase in
costs of goods sold or challenges in
efficiently managing selling prices.
On the other hand, Equinor shows a slight but
consistent improvement in its profitability
y = 0.0017x - 2.9302
R² = 0.0893
0.49
0.50
0.51
0.52
0.53
0.54
0.55
0.56
0.57
2008 2010 2012 2014 2016 2018
Year
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ratio, indicative of more effective cost
management and a successful business
strategy. This indicator reflects Equinor's
ability to increase its operational efficiency
and its ability to generate revenues above
incremental costs, which is a testament to the
company's operational strength and strategy.
4. Discussion
The findings of this study highlight key
differences in the financial and operational
management of PEMEX and Equinor,
suggesting that business strategies and
operational contexts significantly influence
financial results. The decreasing trend in
PEMEX's liquidity can be interpreted as a
challenge in liquidity management that could
have implications for its financial stability, as
has been documented in previous studies on
financial volatility in the oil industry
(Sánchez, 2019; Rojas 2005 ). On the other
hand, the improvement in Equinor's liquidity
reflects efficient management that has been
highlighted in reports on its financial
resilience (Villa and Sánchez, 2022).
Operational efficiency, measured through
inventory turnover, shows an upward trend
for both companies, although more marked in
Equinor. These results are consistent with
documented trends in inventory management
in the energy industry, where operational
efficiency has been identified as a key factor
for competitiveness (Olivera-Pájaro, 2022).
The analysis of the debt ratio reveals a
sustained increase in PEMEX's debt level,
aligned with the literature that suggests a
growing dependence on debt in state-owned
companies (Secretaría de Hacienda y Crédito
Público, 2023). In contrast, Equinor shows a
more stable trend, which could reflect its
conservative and prudent financing strategy,
highlighted by financial analysts (Amy,
2020:17); MarketScreener, n.d.).
Profitability, a direct indicator of business
success, shows a decrease for PEMEX and a
slight increase for Equinor. PEMEX's decline
may be related to the increase in costs of
goods sold or a decrease in operational
efficiency, a phenomenon previously
observed in oil companies facing structural
challenges (Cantero-Cora and Leyva-
Cardeñosa, 2016). The improvement at
Equinor, although modest, is indicative of
effective cost management and a successful
operational strategy, as has been recognized
in its commitment to innovation and
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adaptability (Equinor, 2024; Félix, 2023).
PEMEX's declining liquidity, while
highlighting immediate challenges in
managing working capital, also raises
concerns about its agility in responding to
market fluctuations. Studies such as those of
Villa and Sánchez (2022); Ducuara, Niebles
and Pacheco (2022); Batten, Kinateder,
Szilagyi, and Wagner (2019) have
emphasized that robust liquidity is essential
for the survival of companies in the volatile
oil and gas industry, where investment
opportunities and risks must be meticulously
balanced.
On the other hand, Equinor's rising liquidity
can be interpreted as a competitive advantage
that allows it not only to face short-term
financial commitments but also to capitalize
on investment opportunities quickly, a
notable advantage in today's dynamic energy
environment (Barrios, Acosta and Correa,
2004).
PEMEX's increasing indebtedness suggests a
leveraged growth strategy, which, although it
can facilitate the expansion and development
of large-scale projects, also increases its
vulnerability to market fluctuations and
economic cycles, as demonstrated by the debt
crisis. of the 1980s in state companies (Sachs,
1989; Girón, 1991; Vargas Mendoza 2013).
Equinor, by maintaining a more conservative
borrowing strategy, appears to align with the
practices recommended by the financial
literature that associates prudent leverage
with long-term sustainability and resistance
to economic crises (Kraus & Litzenberger,
1973).
Regarding profitability, the declining trend at
PEMEX could have significant implications
for its competitiveness, since profitability is a
reflection of how effectively a company
generates value from its operations.
Companies that fail to maintain adequate
profit margins may face challenges in
sustaining investments and guaranteeing
returns to shareholders, which could affect
their market positioning and investor
confidence (Fama & French, 2002).
In contrast, Equinor's increasing profitability
could be interpreted as an indication of its
operational efficiency and its ability to adapt
to market conditions, highlighting the
importance of innovation and adaptability in
business strategy, as discussed in the
literature on business resilience (Sheffi,
2007).
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5. Conclusion
The comparative study of the financial ratios
of PEMEX and Equinor has provided a
comprehensive view of the position and
strategies of these companies within the
global energy sector. Through the analysis of
liquidity, activity, debt and profitability
indicators, specific trends have been
identified that outline the financial and
operational management of each company
and its response to market dynamics.
PEMEX's trajectory reflects challenges in
liquidity and a growing dependence on debt,
which, together with decreasing profitability,
indicates critical areas that require attention,
so it is important for decision makers to
consider strategies and challenges that
support the improvement of its
competitiveness and financial stability.
Although an improvement in operational
efficiency is observed, it is essential that
PEMEX continues to implement strategies
aimed at resource optimization and cost
management to strengthen its position in the
market.
In contrast, Equinor has demonstrated
effective management of its liquidity and a
conservative approach to debt. The upward
trend in its profitability and operational
efficiency underscores its ability to
successfully adapt to changing market
conditions and position itself as a leader in
the energy sector.
The contrast in financial and operational
management between PEMEX and Equinor
reflects not only the differences in market
conditions and corporate policies but also the
adaptability and risk management strategies
that are fundamental to sustainability in the
volatile oil industry environment.
In conclusion, this study highlights the
importance of adaptability, efficient
management and solid strategic planning in
strengthening the competitiveness of oil
companies in the international arena. Lessons
learned from Equinor and PEMEX offer
valuable insights for the energy industry,
where the ability to navigate economic
uncertainty and capitalize on operational
efficiency will be increasingly vital to long-
term success.
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Autores:
Jaime Antonio Ruiz Hernández: Professor at the Faculty of Economics, Accounting, and
Administration of the Juárez University of the State of Durango.
Julieta Evangelina Sánchez Cano: Corresponding author. Professor at the Faculty of Economics,
Accounting, and Administration of the Juárez University of the State of Durango.
Candy Villa Luna: Professor at the Faculty of Economics, Accounting, and Administration of the
Juárez University of the State of Durango