Stock Analysis on Net
Stock Analysis on Net

ConocoPhillips (NYSE:COP)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

ConocoPhillips, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 22.23% = 11.42% × 1.95
Sep 30, 2023 23.46% = 11.96% × 1.96
Jun 30, 2023 27.20% = 14.43% × 1.89
Mar 31, 2023 33.15% = 17.32% × 1.91
Dec 31, 2022 38.91% = 19.91% × 1.95
Sep 30, 2022 36.79% = 19.04% × 1.93
Jun 30, 2022 31.69% = 16.98% × 1.87
Mar 31, 2022 26.12% = 13.78% × 1.90
Dec 31, 2021 17.79% = 8.91% × 2.00
Sep 30, 2021 10.61% = 5.36% × 1.98
Jun 30, 2021 4.18% = 2.17% × 1.93
Mar 31, 2021 0.05% = 0.02% × 1.94
Dec 31, 2020 -9.05% = -4.31% × 2.10
Sep 30, 2020 -3.93% = -1.91% × 2.05
Jun 30, 2020 7.29% = 3.64% × 2.00
Mar 31, 2020 11.55% = 5.56% × 2.08
Dec 31, 2019 20.55% = 10.20% × 2.02
Sep 30, 2019 — = — × 2.00
Jun 30, 2019 — = — × 2.16
Mar 31, 2019 — = — × 2.18

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

ConocoPhillips, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 22.23% = 19.52% × 0.59 × 1.95
Sep 30, 2023 23.46% = 18.67% × 0.64 × 1.96
Jun 30, 2023 27.20% = 19.37% × 0.74 × 1.89
Mar 31, 2023 33.15% = 20.97% × 0.83 × 1.91
Dec 31, 2022 38.91% = 23.80% × 0.84 × 1.95
Sep 30, 2022 36.79% = 24.06% × 0.79 × 1.93
Jun 30, 2022 31.69% = 24.34% × 0.70 × 1.87
Mar 31, 2022 26.12% = 23.91% × 0.58 × 1.90
Dec 31, 2021 17.79% = 17.63% × 0.51 × 2.00
Sep 30, 2021 10.61% = 12.93% × 0.41 × 1.98
Jun 30, 2021 4.18% = 6.33% × 0.34 × 1.93
Mar 31, 2021 0.05% = 0.09% × 0.27 × 1.94
Dec 31, 2020 -9.05% = -14.38% × 0.30 × 2.10
Sep 30, 2020 -3.93% = -5.76% × 0.33 × 2.05
Jun 30, 2020 7.29% = 9.43% × 0.39 × 2.00
Mar 31, 2020 11.55% = 12.23% × 0.45 × 2.08
Dec 31, 2019 20.55% = 22.07% × 0.46 × 2.02
Sep 30, 2019 — = — × — × 2.00
Jun 30, 2019 — = — × — × 2.16
Mar 31, 2019 — = — × — × 2.18

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

ConocoPhillips, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 22.23% = 0.67 × 0.95 × 30.40% × 0.59 × 1.95
Sep 30, 2023 23.46% = 0.65 × 0.96 × 30.01% × 0.64 × 1.96
Jun 30, 2023 27.20% = 0.63 × 0.97 × 31.98% × 0.74 × 1.89
Mar 31, 2023 33.15% = 0.64 × 0.97 × 33.98% × 0.83 × 1.91
Dec 31, 2022 38.91% = 0.66 × 0.97 × 36.99% × 0.84 × 1.95
Sep 30, 2022 36.79% = 0.66 × 0.97 × 37.54% × 0.79 × 1.93
Jun 30, 2022 31.69% = 0.68 × 0.96 × 37.23% × 0.70 × 1.87
Mar 31, 2022 26.12% = 0.68 × 0.96 × 36.77% × 0.58 × 1.90
Dec 31, 2021 17.79% = 0.64 × 0.93 × 29.67% × 0.51 × 2.00
Sep 30, 2021 10.61% = 0.64 × 0.89 × 22.53% × 0.41 × 1.98
Jun 30, 2021 4.18% = 0.58 × 0.79 × 13.82% × 0.34 × 1.93
Mar 31, 2021 0.05% = 0.17 × 0.13 × 4.23% × 0.27 × 1.94
Dec 31, 2020 -9.05% = — × — × -12.67% × 0.30 × 2.10
Sep 30, 2020 -3.93% = — × — × -0.18% × 0.33 × 2.05
Jun 30, 2020 7.29% = 0.73 × 0.80 × 16.15% × 0.39 × 2.00
Mar 31, 2020 11.55% = 0.70 × 0.87 × 20.08% × 0.45 × 2.08
Dec 31, 2019 20.55% = 0.76 × 0.92 × 31.42% × 0.46 × 2.02
Sep 30, 2019 — = — × — × — × — × 2.00
Jun 30, 2019 — = — × — × — × — × 2.16
Mar 31, 2019 — = — × — × — × — × 2.18

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

ConocoPhillips, decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 11.42% = 19.52% × 0.59
Sep 30, 2023 11.96% = 18.67% × 0.64
Jun 30, 2023 14.43% = 19.37% × 0.74
Mar 31, 2023 17.32% = 20.97% × 0.83
Dec 31, 2022 19.91% = 23.80% × 0.84
Sep 30, 2022 19.04% = 24.06% × 0.79
Jun 30, 2022 16.98% = 24.34% × 0.70
Mar 31, 2022 13.78% = 23.91% × 0.58
Dec 31, 2021 8.91% = 17.63% × 0.51
Sep 30, 2021 5.36% = 12.93% × 0.41
Jun 30, 2021 2.17% = 6.33% × 0.34
Mar 31, 2021 0.02% = 0.09% × 0.27
Dec 31, 2020 -4.31% = -14.38% × 0.30
Sep 30, 2020 -1.91% = -5.76% × 0.33
Jun 30, 2020 3.64% = 9.43% × 0.39
Mar 31, 2020 5.56% = 12.23% × 0.45
Dec 31, 2019 10.20% = 22.07% × 0.46
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

ConocoPhillips, decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 11.42% = 0.67 × 0.95 × 30.40% × 0.59
Sep 30, 2023 11.96% = 0.65 × 0.96 × 30.01% × 0.64
Jun 30, 2023 14.43% = 0.63 × 0.97 × 31.98% × 0.74
Mar 31, 2023 17.32% = 0.64 × 0.97 × 33.98% × 0.83
Dec 31, 2022 19.91% = 0.66 × 0.97 × 36.99% × 0.84
Sep 30, 2022 19.04% = 0.66 × 0.97 × 37.54% × 0.79
Jun 30, 2022 16.98% = 0.68 × 0.96 × 37.23% × 0.70
Mar 31, 2022 13.78% = 0.68 × 0.96 × 36.77% × 0.58
Dec 31, 2021 8.91% = 0.64 × 0.93 × 29.67% × 0.51
Sep 30, 2021 5.36% = 0.64 × 0.89 × 22.53% × 0.41
Jun 30, 2021 2.17% = 0.58 × 0.79 × 13.82% × 0.34
Mar 31, 2021 0.02% = 0.17 × 0.13 × 4.23% × 0.27
Dec 31, 2020 -4.31% = — × — × -12.67% × 0.30
Sep 30, 2020 -1.91% = — × — × -0.18% × 0.33
Jun 30, 2020 3.64% = 0.73 × 0.80 × 16.15% × 0.39
Mar 31, 2020 5.56% = 0.70 × 0.87 × 20.08% × 0.45
Dec 31, 2019 10.20% = 0.76 × 0.92 × 31.42% × 0.46
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

ConocoPhillips, decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 19.52% = 0.67 × 0.95 × 30.40%
Sep 30, 2023 18.67% = 0.65 × 0.96 × 30.01%
Jun 30, 2023 19.37% = 0.63 × 0.97 × 31.98%
Mar 31, 2023 20.97% = 0.64 × 0.97 × 33.98%
Dec 31, 2022 23.80% = 0.66 × 0.97 × 36.99%
Sep 30, 2022 24.06% = 0.66 × 0.97 × 37.54%
Jun 30, 2022 24.34% = 0.68 × 0.96 × 37.23%
Mar 31, 2022 23.91% = 0.68 × 0.96 × 36.77%
Dec 31, 2021 17.63% = 0.64 × 0.93 × 29.67%
Sep 30, 2021 12.93% = 0.64 × 0.89 × 22.53%
Jun 30, 2021 6.33% = 0.58 × 0.79 × 13.82%
Mar 31, 2021 0.09% = 0.17 × 0.13 × 4.23%
Dec 31, 2020 -14.38% = — × — × -12.67%
Sep 30, 2020 -5.76% = — × — × -0.18%
Jun 30, 2020 9.43% = 0.73 × 0.80 × 16.15%
Mar 31, 2020 12.23% = 0.70 × 0.87 × 20.08%
Dec 31, 2019 22.07% = 0.76 × 0.92 × 31.42%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in net profit margin ratio over Q4 2023 is the increase in effect of taxes measured by tax burden ratio.