Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
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Profitability Ratios (Summary)
ConocoPhillips, profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
The profitability metrics exhibited varied trends over the observed period. Generally, a decline in profitability is apparent from the beginning of the period through the end, although the rate of decline differs across the ratios examined.
- Operating Profit Margin
- The operating profit margin began at 36.63% and demonstrated relative stability through the end of 2022, fluctuating between 36.63% and 37.27%. A consistent downward trend commenced in early 2023, decreasing from 33.89% to 22.97% by the end of 2025. The rate of decline accelerated in the latter half of the period.
- Net Profit Margin
- Similar to the operating profit margin, the net profit margin showed initial stability, ranging from 23.80% to 24.34% in 2022. A declining trend began in 2023, with the margin decreasing from 20.97% to 13.55% by the end of 2025. The decrease appears to mirror the trend observed in the operating profit margin, though at a slightly lower magnitude.
- Return on Equity (ROE)
- Return on equity peaked in December 2022 at 38.91%, following a period of growth from 26.12% in March 2022. A substantial and consistent decline followed, decreasing to 12.39% by December 2025. The rate of decline was most pronounced between 2023 and 2024. The fluctuations in ROE were more significant than those observed in the profit margins.
- Return on Assets (ROA)
- Return on assets followed a similar pattern to ROE, increasing from 13.78% to 19.91% through December 2022. A steady decline was then observed, with the ratio falling to 6.55% by the end of 2025. The rate of decrease was relatively consistent throughout the period, though the absolute decline was less dramatic than that seen in ROE.
Collectively, these ratios suggest a weakening of profitability and efficiency over the analyzed timeframe. While the initial periods showed relative strength, a clear and consistent downward trend emerged, impacting both profitability margins and returns generated on equity and assets.
Return on Sales
Return on Investment
Operating Profit Margin
ConocoPhillips, operating profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating income | |||||||||||||||||||||
| Sales and other operating revenues | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q4 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025)
÷ (Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025
+ Sales and other operating revenuesQ2 2025
+ Sales and other operating revenuesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally declining trend over the observed period, though with some quarterly fluctuations. Initial values were relatively high, followed by a consistent decrease towards the end of the period.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The operating profit margin began at 36.63% and demonstrated a slight increase, peaking at 37.27% in September 2022. It then experienced a moderate decline to 36.80% by December 2022, remaining above 36% throughout this timeframe. This suggests a period of strong operational profitability.
- Declining Trend (Mar 31, 2023 – Dec 31, 2024)
- From March 2023, a more pronounced downward trend became evident. The operating profit margin decreased from 33.89% to 26.64% by December 2024. This decline indicates increasing pressure on profitability, potentially due to rising costs or decreasing revenue strength. The rate of decline appeared to accelerate during this period.
- Recent Period (Mar 31, 2025 – Dec 31, 2025)
- The decline continued into 2025, reaching 25.41% in June and further decreasing to 22.97% by December. This represents the lowest operating profit margin observed throughout the entire period, signaling a significant reduction in profitability. The rate of decline appears to have slowed slightly in the final quarter of 2025 compared to the previous quarters.
- Overall Trend
- The operating profit margin decreased from a high of 37.27% in September 2022 to 22.97% in December 2025, representing an overall decrease of approximately 38.3%. This substantial decline warrants further investigation into the underlying factors affecting operational profitability.
The consistency of the decline, particularly in the latter half of the period, suggests that the factors impacting the operating profit margin are likely systemic rather than isolated quarterly events.
Net Profit Margin
ConocoPhillips, net profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | |||||||||||||||||||||
| Sales and other operating revenues | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q4 2025 Calculation
Net profit margin = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ (Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025
+ Sales and other operating revenuesQ2 2025
+ Sales and other operating revenuesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibited a generally declining trend over the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values were consistently above 23%, but progressively decreased to approximately 13.55% by the end of the period.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The net profit margin remained relatively stable and high, fluctuating between 23.80% and 24.34%. This indicates a strong ability to translate revenue into profit during this timeframe. A slight decrease is observed from the peak in June 2022 to the end of 2022, but the margin remained robust.
- Transition Phase (Mar 31, 2023 – Dec 31, 2023)
- A noticeable downward trend began in the first quarter of 2023, with the net profit margin declining from 20.97% to 19.52% by the end of the year. While still representing a healthy profit margin, this period marks a clear shift from the previous stability. The decline appears gradual but consistent.
- Continued Decline (Mar 31, 2024 – Dec 31, 2025)
- The decline in net profit margin accelerated during this period. The margin decreased from 19.19% in March 2024 to 13.55% by December 2025. This represents a significant reduction in profitability. Fluctuations occurred within this decline, with a slight increase observed in March 2025, but the overall trend remained firmly downward. The lowest value recorded was 13.55%.
- Relationship to Revenue
- While net income generally decreased over the period, sales and other operating revenues also experienced fluctuations. The decreasing net profit margin suggests that revenue declines were not fully offset by cost control, or that costs increased at a faster rate than revenue. The largest revenue value occurred in June 2022, while the lowest occurred in December 2025, but the margin decline was not directly proportional to revenue changes, indicating other factors were at play.
In summary, the net profit margin experienced a consistent decline throughout the analyzed period. While initially strong, the margin progressively decreased, indicating a weakening ability to convert revenue into profit. The rate of decline accelerated in the later part of the period, warranting further investigation into the underlying factors contributing to this trend.
Return on Equity (ROE)
ConocoPhillips, ROE calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | |||||||||||||||||||||
| Equity | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q4 2025 Calculation
ROE = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited considerable fluctuation over the analyzed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ROE demonstrated an increasing trend, peaking in December 2022, before subsequently declining through the end of 2025.
- Initial Increase (Mar 31, 2022 – Dec 31, 2022)
- The ROE began at 26.12% in March 2022 and steadily increased each quarter, reaching a high of 38.91% by December 2022. This period reflects a strong ability to generate profit from shareholder equity. The increase suggests improved operational efficiency, effective cost management, or a favorable market environment contributing to higher net income relative to equity.
- Subsequent Decline (Mar 31, 2023 – Dec 31, 2025)
- Following the peak in December 2022, the ROE experienced a consistent downward trend. It decreased from 33.15% in March 2023 to 12.39% by December 2025. This decline indicates a diminishing ability to generate profits from shareholder equity. The decrease could be attributed to factors such as reduced net income, increased equity, or a combination of both.
- Net Income and Equity Relationship
- While net income generally decreased over the period, the equity position remained relatively stable until a significant increase in December 2024. The substantial rise in equity in December 2024, coupled with a continued decline in net income, likely contributed to the accelerated decrease in ROE observed in the latter part of the analyzed timeframe. The increase in equity may be due to retained earnings, stock issuance, or other equity-related transactions.
- Recent Performance (Sep 30, 2024 – Dec 31, 2025)
- The most recent quarters show a continued decline in ROE, falling from 19.94% in September 2024 to 12.39% in December 2025. This suggests that the factors driving the decline are persistent and may require further investigation to determine their underlying causes and potential mitigation strategies.
In summary, the ROE initially demonstrated strong performance but experienced a notable and sustained decline over the analyzed period. The interplay between net income and equity appears to be a key driver of this trend, with a significant increase in equity in late 2024 exacerbating the decline in profitability relative to shareholder investment.
Return on Assets (ROA)
ConocoPhillips, ROA calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q4 2025 Calculation
ROA = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a fluctuating pattern over the observed period, beginning with a value of 13.78% in March 2022. Subsequent quarters in 2022 demonstrated an increasing trend, peaking at 19.91% by December 2022. This positive momentum did not persist into 2023, as ROA experienced a consistent decline throughout the year, falling to 6.55% by December 2025.
- Initial Increase (Mar 31, 2022 – Dec 31, 2022)
- From the first quarter of 2022 through the end of the year, ROA increased substantially. This suggests improved efficiency in utilizing assets to generate profit during this timeframe. The increase could be attributed to factors such as increased net income, effective asset management, or a combination of both.
- Subsequent Decline (Mar 31, 2023 – Dec 31, 2025)
- Beginning in the first quarter of 2023, ROA began a consistent downward trend. While net income remained positive throughout the period, its rate of decline appeared to outpace any potential reductions in total assets, contributing to the decreasing ROA. The increase in total assets observed in late 2024 and 2025 may have also contributed to the decline, as a larger asset base requires a proportionally larger net income to maintain the same ROA percentage.
The most significant decrease in ROA occurred between December 2022 (19.91%) and December 2025 (6.55%), representing a substantial reduction in profitability relative to asset utilization. The trend suggests a potential weakening in the company’s ability to generate earnings from its asset base over the latter portion of the analyzed period.
- Net Income and Total Assets Relationship
- A review of the net income and total assets figures indicates that while net income generally decreased over the period, total assets experienced periods of both increase and decrease. The substantial increase in total assets in late 2024 and 2025, coupled with a relatively stable net income, likely exerted downward pressure on ROA.
Further investigation would be required to determine the underlying causes of the observed trends, including a detailed analysis of the components of both net income and total assets.