Analysis of Investments
Paying user area
Try for free
ConocoPhillips pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to ConocoPhillips for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
ConocoPhillips, adjustment to net income (loss) attributable to ConocoPhillips
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Reported Net Income (Loss) Attributable to ConocoPhillips
- The reported net income experienced a significant fluctuation over the observed period. In 2020, the company faced a substantial loss of approximately US$ -2.7 billion. However, the following year marked a pronounced recovery with reported net income rising sharply to about US$ 8.1 billion. This positive trend continued into 2022, reaching a peak of approximately US$ 18.7 billion, indicating a period of strong profitability. In 2023, the net income declined to around US$ 10.96 billion, followed by a further decrease to approximately US$ 9.25 billion in 2024. Despite the downward trend post-2022, the net income levels remain significantly higher than those recorded in 2020.
- Adjusted Net Income (Loss) Attributable to ConocoPhillips
- The adjusted net income figures closely mirror the reported net income trend, reflecting similarly significant variations. The adjusted net income was close to breakeven in 2020, with a slight loss of US$ -2.7 billion, followed by a substantial gain of approximately US$ 8.1 billion in 2021. The year 2022 saw adjusted net income peak at nearly US$ 18.7 billion, in line with the reported measure. Subsequently, there was a decline to about US$ 10.97 billion in 2023 and a further decrease to US$ 9.25 billion in 2024. The close alignment between adjusted and reported net income indicates that adjustments had minimal impact on the overall income pattern.
- Trends and Insights
- Both reported and adjusted net incomes reflect a volatile earnings pattern with a recovery phase commencing from 2021 through 2022, followed by a gradual decline in the subsequent two years. The substantial improvement from 2020 to 2022 suggests an operational or market environment that significantly enhanced profitability. The decline after 2022, though notable, still maintains earnings at a healthy level compared to the initial loss year. The parallel movement of reported and adjusted figures indicates stable adjustments without considerable one-off effects influencing the core earnings trend.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
ConocoPhillips, adjusted profitability ratios
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Profit Margin Analysis
- The reported net profit margin demonstrated a significant recovery from a negative figure of -14.38% in 2020 to a positive 17.63% in 2021, and peaked at 23.8% in 2022. Subsequently, it experienced a decline in 2023 to 19.52% and further to 16.89% in 2024. The adjusted net profit margin closely mirrors this trend, indicating consistent adjustments and minimal discrepancies compared to the reported margins.
- Return on Equity (ROE) Analysis
- The reported ROE followed a similar pattern to the net profit margin with a negative return of -9.05% in 2020, sharply improving to 17.79% in 2021, and reaching a peak of 38.91% in 2022. This was followed by a reduction to 22.23% in 2023 and a further decline to 14.27% by 2024. The adjusted ROE figures aligned closely with the reported values, presenting negligible variation.
- Return on Assets (ROA) Analysis
- The reported ROA showed improvement from -4.31% in 2020 to 8.91% in 2021, rising markedly to 19.91% in 2022. Afterward, it dropped to 11.42% in 2023 and further to 7.53% in 2024. These trends are closely reflected in the adjusted ROA metrics as well, indicating stable adjustments across the timeline.
- Overall Observations
- The data indicates a significant turnaround for the company from negative profitability and returns in 2020 to strong positive performance in 2021 and 2022. However, there is a noticeable downward trend starting in 2023 continuing into 2024 across all profitability and return metrics. The adjusted figures closely match the reported data, suggesting the adjustments had limited impact on the reported performance trends. This pattern may reflect changing market conditions, operational challenges, or investment impacts beginning in 2023.
ConocoPhillips, Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Net profit margin = 100 × Net income (loss) attributable to ConocoPhillips ÷ Sales and other operating revenues
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to ConocoPhillips ÷ Sales and other operating revenues
= 100 × ÷ =
The data reveals significant fluctuations in net income attributable to the company over the five-year period under review. In 2020, the company experienced a net loss, with reported and adjusted net income figures closely aligned at approximately -$2.7 billion. This negative performance transitioned sharply to profitability in 2021, with reported and adjusted net income increasing substantially to around $8 billion. The upward trend continued in 2022, reaching a peak of nearly $18.7 billion in both reported and adjusted net income.
However, 2023 saw a decline in profitability, with net income decreasing to roughly $11 billion, followed by a further decrease to approximately $9.2 billion in 2024. Despite the decline from the peak in 2022, net income levels in 2023 and 2024 remain substantially higher than those recorded in 2020 and 2021.
Net profit margins exhibit a similar pattern to net income figures. The margins were negative in 2020, at around -14.38%, reflecting the loss incurred. In 2021, profit margins turned positive and improved markedly to approximately 17.6%. This upward trajectory continued into 2022, peaking at about 23.8%. The margins then decreased in the subsequent years, falling back to around 19.5% in 2023 and approximately 16.9% in 2024.
The strong correlation between reported and adjusted figures throughout the period suggests that adjustments made for investment-related factors had minimal impact on the overall financial performance presentation. This consistency indicates reliability and robustness in the reporting and adjustment methodology.
In summary, the company transitioned from a significant loss position in 2020 to robust profitability in 2021 and 2022, followed by a moderate decline in earnings and profit margins in 2023 and 2024. While recent years show a downward trend from peak performance, the net income and profit margins remain at healthy levels compared to the beginning of the period.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 ROE = 100 × Net income (loss) attributable to ConocoPhillips ÷ Common stockholders’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to ConocoPhillips ÷ Common stockholders’ equity
= 100 × ÷ =
- Net Income Trends
- The reported net income attributable to the company showed significant improvement from a loss of $2,701 million in 2020 to a peak profit of $18,680 million in 2022. This was followed by a decline in reported net income to $10,957 million in 2023 and a further decrease to $9,245 million in 2024. The adjusted net income figures closely mirror the reported numbers, indicating minimal adjustments between reported and investment-adjusted results.
- Return on Equity (ROE) Trends
- The reported ROE reflects a similar trend to net income. It moved from a negative return of -9.05% in 2020 to a high of 38.91% in 2022. Subsequently, there was a decline in ROE to 22.23% in 2023 and further to 14.27% in 2024. The adjusted ROE values are nearly identical to the reported ROE, reinforcing consistency between reported results and investment adjustments.
- Overall Performance Analysis
- The company experienced a strong recovery and growth phase after 2020, reaching the highest levels of profitability and return in 2022. However, the following two years showed a notable reduction in profitability metrics, suggesting potential challenges in maintaining the peak performance achieved in 2022. The small difference between reported and adjusted figures throughout the period suggests reliable financial reporting with limited need for significant adjustments.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 ROA = 100 × Net income (loss) attributable to ConocoPhillips ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to ConocoPhillips ÷ Total assets
= 100 × ÷ =
The financial data reveals notable fluctuations in both reported and adjusted net income attributable to ConocoPhillips over the five-year period from 2020 to 2024. The company experienced a significant loss in 2020, with both reported and adjusted net income close to -$2.7 billion. In the subsequent year, there was a marked turnaround, as net income rose sharply to over $8 billion. This positive trend continued into 2022, reaching a peak of approximately $18.7 billion, before declining in the following years to $10.9 billion in 2023 and $9.2 billion in 2024.
Corresponding to the net income movements, the Return on Assets (ROA) exhibited a similar trend. Initially negative at -4.31% in 2020, the ROA improved significantly to nearly 9% in 2021. It peaked in 2022 at close to 20%, reflecting strong profitability and asset utilization efficiency. However, the ROA decreased in the final two years, falling to about 11.4% in 2023 and further to 7.5% in 2024.
The parallelism between reported and adjusted figures suggests consistency in the underlying performance trends, with minimal disparity between reported and adjusted metrics. The overall pattern reflects a recovery from a substantial loss in 2020, a period of strong financial performance peaking in 2022, followed by a moderation in profitability through 2023 and 2024. This indicates that while the company experienced robust growth and asset productivity improvements, recent years have seen a retrenchment or normalization from heightened earnings levels.