Financial statement analysis and common stock valuation

Analysis of Liquidity Ratios

Measures the adequacy of ConocoPhillips cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Income Statement

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

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about ConocoPhillips cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on ConocoPhillips balance sheet.

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

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)

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Income Statement
Quarterly Data

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

Capital Asset Pricing Model (CAPM)

CAPM is a theory concentrated with deriving the expected rates of return on risky assets based on the assets’ systematic risk levels. Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. It cannot be eliminated by diversification.

• Rates of Return
• Variance and Covariance
• Systematic Risk (β) Estimation
• Expected Rate of Return

Analysis of Geographic Areas

ConocoPhillips operates in 2 regions: U.S. and International.

• Area Asset Turnover
• Sales and other operating revenues
• Long-lived assets

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Balance Sheet: Assets

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