Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Cash Flow Statement
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Profitability Ratios (Summary)
ConocoPhillips, profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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).
A general contraction in profitability and operational efficiency is evident from late 2022 through the first quarter of 2026, followed by a modest recovery in the second quarter of 2026.
- Profit Margin Trends
- Operating profit margins remained robust throughout 2022, reaching a peak of 37.27% in September 2022. However, a steady downward trend followed, with margins compressing to 21.31% by March 2026. A reversal of this trend occurred in June 2026, where the operating margin increased to 24.30%. Net profit margins mirrored this trajectory, declining from a high of 24.34% in June 2022 to a low of 12.58% in March 2026, before recovering to 14.65% in the final period.
- Return on Equity (ROE)
- Return on equity exhibited significant volatility, initially climbing from 26.12% in March 2022 to a peak of 38.91% in December 2022. This peak was followed by a consistent multi-quarter decline, reaching a minimum of 11.34% in March 2026. The period concluded with an upward movement to 14.20% in June 2026.
- Return on Assets (ROA)
- Return on assets followed a pattern nearly identical to ROE, peaking at 19.91% in December 2022. A sustained decrease in asset efficiency was observed over the subsequent quarters, with ROA falling to 5.97% by March 2026. Similar to other metrics, a slight recovery was noted in June 2026, with the ratio rising to 7.47%.
The synchronized decline across operating margins, net margins, ROE, and ROA indicates a broad compression of profitability. The peak in returns during late 2022 suggests a period of high efficiency or favorable market conditions that gradually eroded over the following three years, with the most significant decline occurring between 2023 and early 2026.
Return on Sales
Return on Investment
Operating Profit Margin
ConocoPhillips, operating profit margin calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | 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-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q2 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2026
+ Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025)
÷ (Sales and other operating revenuesQ2 2026
+ Sales and other operating revenuesQ1 2026
+ Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operational profitability exhibits a prolonged period of contraction from mid-2022 through early 2026, characterized by a steady decline in the operating profit margin despite fluctuations in total revenue. While the period began with strong margins exceeding 36%, a consistent downward trend emerged, reaching a trough in the first quarter of 2026 before showing signs of recovery in the second quarter of 2026.
- Operating Profit Margin Trajectory
- A peak margin of 37.27% was recorded in September 2022. Following this peak, the margin entered a sustained decline, falling below 30% by March 2024 and continuing to erode throughout 2025. The lowest point occurred on March 31, 2026, with the margin dropping to 21.31%. This represents a significant compression of operational efficiency over a four-year span, although a partial recovery to 24.30% was observed by June 30, 2026.
- Revenue and Operating Income Relationship
- Operating income and sales revenues both peaked in mid-2022, with revenues reaching 21,161 million USD in June 2022. Between 2023 and 2025, operating income experienced a more severe decline than revenues; for instance, by December 31, 2025, operating income had fallen to 2,444 million USD, its lowest point in the series, while revenues remained relatively higher at 13,392 million USD. This disparity accounts for the observed compression in the operating profit margin during this timeframe.
- Recent Recovery Patterns
- The second quarter of 2026 indicates a sharp reversal of the downward trend. Operating income surged to 6,239 million USD, supported by a substantial increase in sales and other operating revenues to 19,161 million USD. This simultaneous increase in both top-line revenue and operating income resulted in the operating profit margin expanding by approximately 300 basis points in a single quarter, moving from 21.31% to 24.30%.
Net Profit Margin
ConocoPhillips, net profit margin calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | 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-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q2 2026 Calculation
Net profit margin = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ (Sales and other operating revenuesQ2 2026
+ Sales and other operating revenuesQ1 2026
+ Sales and other operating revenuesQ4 2025
+ Sales and other operating revenuesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
A consistent downward trajectory in net profit margins is observed over the analyzed period, spanning from March 2022 to June 2026. While the company maintained high profitability levels in 2022, subsequent years show a gradual compression of margins, reaching a cyclical low before a partial recovery in the first half of 2026.
- Stability and Peak Performance (2022)
- Throughout 2022, net profit margins remained stable and elevated, oscillating within a narrow range between 23.80% and 24.34%. This period represents the peak of profitability within the dataset, supported by high sales and operating revenues that peaked at 21,161 million US dollars in June 2022.
- Gradual Margin Erosion (2023–2024)
- A steady decline in profitability began in early 2023. Net profit margins dropped from 20.97% in March 2023 to 16.89% by December 2024. This erosion occurred despite periodic fluctuations in revenue, indicating that net income did not scale proportionally with sales during this phase.
- Trough and Minimum Profitability (2025)
- The downward trend accelerated throughout 2025, with the net profit margin reaching its lowest point of 12.58% in December 2025. This coincided with a significant reduction in net income, which fell to 1,442 million US dollars in the same period, marking the lowest profitability level in the analyzed timeframe.
- Recent Recovery and Divergence (2026)
- The first half of 2026 shows a reversal of the decline. Net profit margins rose from 12.58% in December 2025 to 14.65% by June 2026. This recovery was driven by a substantial increase in both sales and net income, with revenue climbing to 19,161 million US dollars and net income rising to 3,931 million US dollars. However, the margin remains significantly lower than the levels recorded in 2022, suggesting a structural change in cost efficiency or pricing power.
Return on Equity (ROE)
ConocoPhillips, ROE calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | 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-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q2 2026 Calculation
ROE = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ Equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibits a cyclical trajectory characterized by an initial phase of significant growth, followed by a prolonged period of contraction, and a marginal recovery in the final observed period.
- Net Income Trends
- Earnings experienced a general downward trend from a peak of US$ 5,759 million in March 2022 to a low of US$ 1,442 million in December 2025. Despite this long-term decline, a sharp recovery is noted in the final two quarters, with net income rising to US$ 3,931 million by June 2026.
- Equity Base Evolution
- The equity base remained relatively stable between US$ 47,531 million and US$ 50,202 million from March 2022 through September 2024. A substantial increase occurred in December 2024, where equity rose to US$ 64,796 million and remained elevated at approximately US$ 65 billion through June 2026.
- ROE Performance and Compression
- ROE peaked in December 2022 at 38.91%, driven by strong net income relative to a stable equity base. Subsequently, the ratio entered a sustained decline, reaching a minimum of 11.34% in March 2026. This compression was driven by two converging factors: the general decrease in quarterly net income and the significant expansion of the equity denominator in late 2024.
- Recent Recovery Analysis
- A reversal of the downward trend is observed between March 2026 and June 2026, with ROE increasing from 11.34% to 14.20%. This improvement is directly attributable to a substantial increase in net income during the second quarter of 2026, which offset the impact of the larger equity base.
Return on Assets (ROA)
ConocoPhillips, ROA calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | 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-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 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 Q2 2026 Calculation
ROA = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance from March 2022 through June 2026 is characterized by a significant compression in asset efficiency and a fluctuating net income trajectory. An initial period of rising profitability gave way to a prolonged decline in the return on assets, exacerbated by a substantial expansion of the total asset base in the fourth quarter of 2024.
- Net Income Trends
- Net income exhibited a general downward trajectory for the majority of the analyzed period, falling from a peak of 5,759 million USD in March 2022 to a low of 1,442 million USD by December 2025. While the period between 2023 and 2025 was marked by volatility, a sharp recovery is observed in the first half of 2026, culminating in a rise to 3,931 million USD by June 30, 2026.
- Asset Base Expansion
- Total assets remained relatively stable between 91,441 million USD and 96,699 million USD from March 2022 until September 2024. A significant structural shift occurred in December 2024, where assets increased abruptly to 122,780 million USD. This asset base remained elevated at approximately 122 billion to 124 billion USD through June 2026.
- Return on Assets (ROA) Analysis
- ROA experienced three distinct phases. First, a growth phase occurred from March 2022 to December 2022, where the ratio peaked at 19.91%. Second, a steady erosion of efficiency was observed from March 2023 through September 2024, with ROA declining to 10.29%. Third, a sharp decline coincided with the asset expansion in December 2024, dropping ROA to 7.53%. The ratio continued to contract, reaching a minimum of 5.97% in March 2026, before recovering to 7.47% in June 2026 following the increase in net income.
- Correlation between Assets and Profitability
- The data indicates a strong inverse relationship between the scale of the asset base and the ROA starting in late 2024. The sudden increase in total assets, without a corresponding immediate increase in net income, led to a dilution of profitability per dollar of assets. The recovery in ROA observed in June 2026 is attributed to the surge in net income rather than a reduction in the asset base.