Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
ConocoPhillips, profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | ConocoPhillips gross profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | ConocoPhillips operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | ConocoPhillips net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | ConocoPhillips ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| ROA | A profitability ratio calculated as net income divided by total assets. | ConocoPhillips ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Gross Profit Margin
ConocoPhillips, gross profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 6,362 | 15,403 | 16,910 | 11,458 | 8,032 | |
| Sales and other operating revenues | 18,784 | 32,567 | 36,417 | 29,106 | 23,693 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 33.87% | 47.30% | 46.43% | 39.37% | 33.90% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Chevron Corp. | 25.04% | 27.43% | 27.55% | 23.97% | 21.52% | |
| Exxon Mobil Corp. | 30.32% | 29.33% | 30.96% | 31.55% | 28.10% | |
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
Gross profit margin = 100 × Gross profit ÷ Sales and other operating revenues
= 100 × 6,362 ÷ 18,784 = 33.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | ConocoPhillips gross profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Operating Profit Margin
ConocoPhillips, operating profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | (2,865) | 6,330 | 8,756 | (4,658) | (4,971) | |
| Sales and other operating revenues | 18,784 | 32,567 | 36,417 | 29,106 | 23,693 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -15.25% | 19.44% | 24.04% | -16.00% | -20.98% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Chevron Corp. | -6.45% | 0.07% | 9.09% | 1.84% | -5.64% | |
| Exxon Mobil Corp. | -16.49% | 4.99% | 7.92% | 5.09% | 0.43% | |
| Operating Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | -13.16% | 4.48% | 9.55% | 2.47% | -2.91% | |
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
Operating profit margin = 100 × Operating income (loss) ÷ Sales and other operating revenues
= 100 × -2,865 ÷ 18,784 = -15.25%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | ConocoPhillips operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Net Profit Margin
ConocoPhillips, net profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Chevron Corp. | -5.87% | 2.09% | 9.33% | 6.83% | -0.45% | |
| Exxon Mobil Corp. | -12.57% | 5.61% | 7.46% | 8.31% | 3.59% | |
| Net Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | -10.51% | 5.71% | 8.83% | 7.00% | 1.06% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | ConocoPhillips net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Return on Equity (ROE)
ConocoPhillips, ROE calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Chevron Corp. | -4.21% | 2.03% | 9.59% | 6.21% | -0.34% | |
| Exxon Mobil Corp. | -14.28% | 7.48% | 10.87% | 10.50% | 4.69% | |
| ROE, Sector | ||||||
| Oil, Gas & Consumable Fuels | -9.63% | 6.59% | 11.08% | 7.66% | 1.07% | |
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
ROE = 100 × Net income (loss) attributable to ConocoPhillips ÷ Common stockholders’ equity
= 100 × -2,701 ÷ 29,849 = -9.05%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | ConocoPhillips ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Return on Assets (ROA)
ConocoPhillips, ROA calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Chevron Corp. | -2.31% | 1.23% | 5.84% | 3.62% | -0.19% | |
| Exxon Mobil Corp. | -6.74% | 3.95% | 6.02% | 5.65% | 2.37% | |
| ROA, Sector | ||||||
| Oil, Gas & Consumable Fuels | -4.83% | 3.65% | 6.26% | 4.15% | 0.55% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | ConocoPhillips ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |