Stock Analysis on Net

ConocoPhillips (NYSE:COP)

Adjusted Financial Ratios

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Adjusted Financial Ratios (Summary)

ConocoPhillips, adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Activity Ratio
Total Asset Turnover
Reported 0.30 0.46 0.52 0.40 0.26
Adjusted 0.30 0.46 0.51 0.39 0.26
Liquidity Ratio
Current Ratio
Reported 2.25 2.40 1.79 1.76 1.25
Adjusted 2.27 2.43 1.81 1.77 1.26
Solvency Ratios
Debt to Equity
Reported 0.51 0.43 0.47 0.64 0.78
Adjusted 0.48 0.40 0.44 0.58 0.65
Debt to Capital
Reported 0.34 0.30 0.32 0.39 0.44
Adjusted 0.33 0.29 0.31 0.37 0.39
Financial Leverage
Reported 2.10 2.02 2.19 2.40 2.57
Adjusted 1.87 1.78 1.93 2.07 2.07
Profitability Ratios
Net Profit Margin
Reported -14.38% 22.07% 17.18% -2.94% -15.26%
Adjusted -18.37% 23.34% 16.34% -13.08% -24.08%
Return on Equity (ROE)
Reported -9.05% 20.55% 19.59% -2.79% -10.34%
Adjusted -10.35% 19.15% 16.18% -10.55% -12.98%
Return on Assets (ROA)
Reported -4.31% 10.20% 8.94% -1.17% -4.03%
Adjusted -5.53% 10.78% 8.40% -5.10% -6.28%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

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 deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. ConocoPhillips adjusted current ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. ConocoPhillips adjusted debt-to-equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. ConocoPhillips adjusted debt-to-capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
ConocoPhillips adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. ConocoPhillips adjusted net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. ConocoPhillips adjusted ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ConocoPhillips adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

ConocoPhillips, Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 18,784  32,567  36,417  29,106  23,693 
Total assets 62,618  70,514  69,980  73,362  89,772 
Activity Ratio
Total asset turnover1 0.30 0.46 0.52 0.40 0.26
Adjusted
Selected Financial Data (US$ in millions)
Sales and other operating revenues 18,784  32,567  36,417  29,106  23,693 
Adjusted total assets2 62,346  70,498  70,881  74,703  90,895 
Activity Ratio
Adjusted total asset turnover3 0.30 0.46 0.51 0.39 0.26

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Total asset turnover = Sales and other operating revenues ÷ Total assets
= 18,784 ÷ 62,618 = 0.30

2 Adjusted total assets. See details »

3 2020 Calculation
Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 18,784 ÷ 62,346 = 0.30

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 deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 12,066  16,913  13,274  16,512  8,609 
Current liabilities 5,366  7,043  7,395  9,397  6,909 
Liquidity Ratio
Current ratio1 2.25 2.40 1.79 1.76 1.25
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 12,157  17,081  13,374  16,640  8,718 
Current liabilities 5,366  7,043  7,395  9,397  6,909 
Liquidity Ratio
Adjusted current ratio3 2.27 2.43 1.81 1.77 1.26

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 12,066 ÷ 5,366 = 2.25

2 Adjusted current assets. See details »

3 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 12,157 ÷ 5,366 = 2.27

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. ConocoPhillips adjusted current ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 15,369  14,895  14,968  19,703  27,275 
Common stockholders’ equity 29,849  34,981  31,939  30,607  34,974 
Solvency Ratio
Debt to equity1 0.51 0.43 0.47 0.64 0.78
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 16,154  15,827  16,211  21,080  28,689 
Adjusted total equity3 33,324  39,691  36,791  36,100  43,964 
Solvency Ratio
Adjusted debt to equity4 0.48 0.40 0.44 0.58 0.65

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Debt to equity = Total debt ÷ Common stockholders’ equity
= 15,369 ÷ 29,849 = 0.51

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 16,154 ÷ 33,324 = 0.48

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. ConocoPhillips adjusted debt-to-equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 15,369  14,895  14,968  19,703  27,275 
Total capital 45,218  49,876  46,907  50,310  62,249 
Solvency Ratio
Debt to capital1 0.34 0.30 0.32 0.39 0.44
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 16,154  15,827  16,211  21,080  28,689 
Adjusted total capital3 49,478  55,518  53,002  57,180  72,653 
Solvency Ratio
Adjusted debt to capital4 0.33 0.29 0.31 0.37 0.39

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,369 ÷ 45,218 = 0.34

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 16,154 ÷ 49,478 = 0.33

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. ConocoPhillips adjusted debt-to-capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 62,618  70,514  69,980  73,362  89,772 
Common stockholders’ equity 29,849  34,981  31,939  30,607  34,974 
Solvency Ratio
Financial leverage1 2.10 2.02 2.19 2.40 2.57
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 62,346  70,498  70,881  74,703  90,895 
Adjusted total equity3 33,324  39,691  36,791  36,100  43,964 
Solvency Ratio
Adjusted financial leverage4 1.87 1.78 1.93 2.07 2.07

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Financial leverage = Total assets ÷ Common stockholders’ equity
= 62,618 ÷ 29,849 = 2.10

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 62,346 ÷ 33,324 = 1.87

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
ConocoPhillips adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips (2,701) 7,189  6,257  (855) (3,615)
Sales and other operating revenues 18,784  32,567  36,417  29,106  23,693 
Profitability Ratio
Net profit margin1 -14.38% 22.07% 17.18% -2.94% -15.26%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income (loss)2 (3,450) 7,602  5,952  (3,807) (5,705)
Sales and other operating revenues 18,784  32,567  36,417  29,106  23,693 
Profitability Ratio
Adjusted net profit margin3 -18.37% 23.34% 16.34% -13.08% -24.08%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Net profit margin = 100 × Net income (loss) attributable to ConocoPhillips ÷ Sales and other operating revenues
= 100 × -2,701 ÷ 18,784 = -14.38%

2 Adjusted net income (loss). See details »

3 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Sales and other operating revenues
= 100 × -3,450 ÷ 18,784 = -18.37%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. ConocoPhillips adjusted net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips (2,701) 7,189  6,257  (855) (3,615)
Common stockholders’ equity 29,849  34,981  31,939  30,607  34,974 
Profitability Ratio
ROE1 -9.05% 20.55% 19.59% -2.79% -10.34%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income (loss)2 (3,450) 7,602  5,952  (3,807) (5,705)
Adjusted total equity3 33,324  39,691  36,791  36,100  43,964 
Profitability Ratio
Adjusted ROE4 -10.35% 19.15% 16.18% -10.55% -12.98%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
ROE = 100 × Net income (loss) attributable to ConocoPhillips ÷ Common stockholders’ equity
= 100 × -2,701 ÷ 29,849 = -9.05%

2 Adjusted net income (loss). See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted total equity
= 100 × -3,450 ÷ 33,324 = -10.35%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. ConocoPhillips adjusted ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to ConocoPhillips (2,701) 7,189  6,257  (855) (3,615)
Total assets 62,618  70,514  69,980  73,362  89,772 
Profitability Ratio
ROA1 -4.31% 10.20% 8.94% -1.17% -4.03%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income (loss)2 (3,450) 7,602  5,952  (3,807) (5,705)
Adjusted total assets3 62,346  70,498  70,881  74,703  90,895 
Profitability Ratio
Adjusted ROA4 -5.53% 10.78% 8.40% -5.10% -6.28%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
ROA = 100 × Net income (loss) attributable to ConocoPhillips ÷ Total assets
= 100 × -2,701 ÷ 62,618 = -4.31%

2 Adjusted net income (loss). See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × -3,450 ÷ 62,346 = -5.53%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ConocoPhillips adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.