Financial statement analysis and common stock valuation

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by ConocoPhillips.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of ConocoPhillips common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Evaluates revenues and output generated by the ConocoPhillips assets. Operating performance ratios describe the relationship between the ConocoPhillips level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Analysis of Profitability Ratios
Quarterly Data

Measures the income of ConocoPhillips relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Analysis of Reportable Segments

ConocoPhillips operates in 6 segments: Alaska; Lower 48 (L48); Canada; Europe, Middle East and North Africa (EMENA); Asia Pacific (AP); and Other International (OI).

• Segment Profit Margin
• Segment Return on Assets (Segment ROA)
• Segment Asset Turnover
• Segment Capital Expenditures to Depreciation
• Sales and other operating revenues
• Depreciation, depletion, amortization (DD&A)
• Net income (loss) attributable to ConocoPhillips
• Total assets
• Capital expenditures and investments

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of ConocoPhillips, the result of its operating activities.

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the ConocoPhillips suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Present Value of Free Cash Flow to Equity (FCFE)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• FCFE Growth Rate (g)