Stock Analysis on Net
Stock Analysis on Net

ConocoPhillips (NYSE:COP)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

ConocoPhillips, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 95,924 93,829 90,661 62,618 70,514
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — —
Total assets (adjusted) 95,924 93,829 90,661 62,618 70,514
Adjustment to Total Debt
Total debt (as reported) 18,937 16,643 19,934 15,369 14,895
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — — —
Add: Current lease liabilities, operating leases (included in Other accruals) 193 155 188 226 347
Add: Long-term lease liabilities, operating leases (included in Other liabilities and deferred credits) 504 390 479 559 585
Total debt (adjusted) 19,634 17,188 20,601 16,154 15,827

Based on: 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), 10-K (reporting date: 2019-12-31).

1, 2 Equal to total present value of future operating lease payments.

ConocoPhillips, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

ConocoPhillips, adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.59 0.84 0.51 0.30 0.46
Adjusted total asset turnover 0.59 0.84 0.51 0.30 0.46
Debt to Equity2
Reported debt to equity 0.38 0.35 0.44 0.51 0.43
Adjusted debt to equity 0.40 0.36 0.45 0.54 0.45
Return on Assets3 (ROA)
Reported ROA 11.42% 19.91% 8.91% -4.31% 10.20%
Adjusted ROA 11.42% 19.91% 8.91% -4.31% 10.20%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 See details »

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. ConocoPhillips adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. ConocoPhillips adjusted debt to equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. ConocoPhillips adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

ConocoPhillips, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 56,141 78,494 45,828 18,784 32,567
Total assets 95,924 93,829 90,661 62,618 70,514
Activity Ratio
Total asset turnover1 0.59 0.84 0.51 0.30 0.46
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Sales and other operating revenues 56,141 78,494 45,828 18,784 32,567
Adjusted total assets 95,924 93,829 90,661 62,618 70,514
Activity Ratio
Adjusted total asset turnover2 0.59 0.84 0.51 0.30 0.46

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 56,141 ÷ 95,924 = 0.59

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 56,141 ÷ 95,924 = 0.59

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. ConocoPhillips adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 18,937 16,643 19,934 15,369 14,895
Common stockholders’ equity 49,279 48,003 45,406 29,849 34,981
Solvency Ratio
Debt to equity1 0.38 0.35 0.44 0.51 0.43
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 19,634 17,188 20,601 16,154 15,827
Common stockholders’ equity 49,279 48,003 45,406 29,849 34,981
Solvency Ratio
Adjusted debt to equity2 0.40 0.36 0.45 0.54 0.45

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Debt to equity = Total debt ÷ Common stockholders’ equity
= 18,937 ÷ 49,279 = 0.38

2 Adjusted debt to equity = Adjusted total debt ÷ Common stockholders’ equity
= 19,634 ÷ 49,279 = 0.40

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. ConocoPhillips adjusted debt-to-equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips 10,957 18,680 8,079 (2,701) 7,189
Total assets 95,924 93,829 90,661 62,618 70,514
Profitability Ratio
ROA1 11.42% 19.91% 8.91% -4.31% 10.20%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips 10,957 18,680 8,079 (2,701) 7,189
Adjusted total assets 95,924 93,829 90,661 62,618 70,514
Profitability Ratio
Adjusted ROA2 11.42% 19.91% 8.91% -4.31% 10.20%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income (loss) attributable to ConocoPhillips ÷ Total assets
= 100 × 10,957 ÷ 95,924 = 11.42%

2 Adjusted ROA = 100 × Net income (loss) attributable to ConocoPhillips ÷ Adjusted total assets
= 100 × 10,957 ÷ 95,924 = 11.42%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. ConocoPhillips adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.