Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Net Profit Margin since 2005
- Analysis of Debt
- Aggregate Accruals
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Profitability Ratios (Summary)
ConocoPhillips, profitability ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| Operating profit margin | ||||||
| Net profit margin | ||||||
| Return on Investment | ||||||
| Return on equity (ROE) | ||||||
| Return on assets (ROA) | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Operating Profit Margin
- The operating profit margin exhibited a significant turnaround from a negative value of -12.74% in 2020 to a robust positive margin of 29.84% in 2021. This upward trend continued into 2022, reaching a peak of 36.8%. However, following this peak, a gradual decline was observed over the next two years, with margins decreasing to 30.57% in 2023 and further to 26.64% in 2024, signaling a softening yet still positive operational profitability.
- Net Profit Margin
- Net profit margin closely mirrored the trends in operating profit margin, starting from a negative -14.38% in 2020 and improving substantially to 17.63% in 2021. The margin peaked at 23.8% in 2022 before experiencing a decline to 19.52% in 2023 and further down to 16.89% in 2024. This pattern indicates an overall improvement in net profitability despite some recent moderation.
- Return on Equity (ROE)
- ROE showed a strong recovery from a negative return of -9.05% in 2020 to a significant positive return of 17.79% in 2021. The ratio further surged to a high of 38.91% in 2022, demonstrating exceptional shareholder value creation during this period. However, this was followed by a marked reduction in 2023 to 22.23%, and a further decrease to 14.27% in 2024. Although the return remained positive, the downward trend suggests diminishing efficiency in generating equity returns.
- Return on Assets (ROA)
- ROA rose considerably from -4.31% in 2020 to 8.91% in 2021, with an especially notable increase to 19.91% in 2022, underscoring enhanced asset utilization. Similar to other parameters, ROA declined to 11.42% in 2023 and 7.53% in 2024, pointing to a reduction in asset efficiency though remaining significantly above 2020 levels.
- Overall Analysis
- The data reflect a pronounced recovery and growth phase from 2020 through 2022, characterized by a transition from negative to strong positive profitability and returns. However, beginning in 2023, all metrics indicate a reversal towards moderate declines, suggesting a period of consolidation or emerging operational and market challenges. Despite these declines, profitability and returns remain positively elevated compared to the initial period, highlighting resilience amidst evolving conditions.
Return on Sales
Return on Investment
Operating Profit Margin
ConocoPhillips, operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Sales and other operating revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Operating Profit Margin, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Sales and other operating revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income showed a significant turnaround over the observed period. In 2020, there was a substantial loss of -2,393 million USD. This negative figure reversed sharply in 2021, with an operating income of 13,676 million USD. The upward trend continued through 2022, reaching a peak of 28,886 million USD. However, in the subsequent years, operating income declined to 17,162 million USD in 2023 and further to 14,586 million USD in 2024, indicating some challenges or changes impacting profitability after the peak year.
- Sales and Other Operating Revenues
- Sales and related revenues exhibited strong growth initially from 18,784 million USD in 2020 to 45,828 million USD in 2021, and further to 78,494 million USD in 2022. Despite this significant increase, the revenues declined in the following years to 56,141 million USD in 2023 and 54,745 million USD in 2024. This pattern suggests a peak in revenues in 2022 followed by a downturn, which may reflect market conditions, pricing, or volume changes.
- Operating Profit Margin
- The operating profit margin mirrored the overall profit trends, starting with a negative margin of -12.74% in 2020. There was a strong improvement in 2021 to 29.84%, rising even further to 36.8% in 2022. However, like the operating income, the margin decreased in the years after, settling at 30.57% in 2023 and then declining to 26.64% in 2024. Despite the downward trend in recent years, margins remained positive and relatively strong compared to 2020.
Net Profit Margin
ConocoPhillips, net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to ConocoPhillips | ||||||
| Sales and other operating revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Profit Margin, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net profit margin = 100 × Net income (loss) attributable to ConocoPhillips ÷ Sales and other operating revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to ConocoPhillips
- The net income displays significant volatility over the observed five-year period. A loss of 2701 million USD was recorded in 2020, which sharply reverses into a profit of 8079 million USD in 2021. This upward trend continues with a peak profit of 18680 million USD in 2022. However, profits moderately decline thereafter, amounting to 10957 million USD in 2023 and further decreasing to 9245 million USD in 2024. This pattern suggests a strong recovery post-2020 followed by a gradual reduction in net profitability.
- Sales and Other Operating Revenues
- Sales revenues experienced marked growth from 18784 million USD in 2020 to a peak of 78494 million USD in 2022. After this peak, revenues sharply decreased to 56141 million USD in 2023, with a slight further decline to 54745 million USD in 2024. The data indicates a robust expansion in sales between 2020 and 2022, succeeded by a notable contraction in subsequent years.
- Net Profit Margin
- The net profit margin follows a similar trajectory to net income, with a negative margin of -14.38% in 2020, transforming into positive margins in the following years. It rises to 17.63% in 2021, achieving its highest point at 23.8% in 2022. Subsequently, the margin decreases to 19.52% in 2023 and further to 16.89% in 2024. This indicates that profitability relative to sales was weakest in 2020 and strongest in 2022, before weakening moderately but remaining positive through 2024.
Return on Equity (ROE)
ConocoPhillips, ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to ConocoPhillips | ||||||
| Common stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| ROE, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| ROE, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROE = 100 × Net income (loss) attributable to ConocoPhillips ÷ Common stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to ConocoPhillips
- The net income exhibited significant volatility over the five-year period. In 2020, the company faced a substantial loss of $2,701 million. However, this was followed by a marked recovery in 2021, achieving a net income of $8,079 million. The upward trend continued strongly in 2022, with net income peaking at $18,680 million. Subsequently, there was a notable decline in 2023 to $10,957 million, followed by a further decrease in 2024 to $9,245 million. Overall, while income showed strong growth post-2020, the decline in the last two years suggests some pressures or challenges impacting profitability.
- Common Stockholders' Equity
- Shareholders’ equity demonstrated a consistent upward trajectory throughout the period. Starting at $29,849 million in 2020, equity increased steadily each year, reaching $45,406 million in 2021 and further rising to $48,003 million in 2022. This growth continued more modestly to $49,279 million in 2023 before accelerating to $64,796 million in 2024. The overall pattern reflects strengthening financial position and accumulation of retained earnings or capital injections.
- Return on Equity (ROE)
- Return on equity mirrored the fluctuations observed in net income, but with more pronounced peaks. The company suffered negative ROE of -9.05% in 2020, consistent with the reported loss. This was followed by a strong recovery to 17.79% in 2021, and an exceptional increase to 38.91% in 2022, indicating highly effective utilization of equity during this peak profit period. Thereafter, ROE decreased significantly to 22.23% in 2023 and further to 14.27% in 2024, suggesting reduced profitability relative to equity despite equity growth. The decreasing ROE trend in the last two years indicates diminished efficiency in generating returns on equity.
Return on Assets (ROA)
ConocoPhillips, ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to ConocoPhillips | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| ROA, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| ROA, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROA = 100 × Net income (loss) attributable to ConocoPhillips ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net income (loss) attributable to ConocoPhillips
- The net income showed a significant turnaround from a loss of US$2,701 million in 2020 to a profit of US$8,079 million in 2021. This upward trend continued strongly in 2022, reaching US$18,680 million, representing the highest value in the observed period. However, net income decreased in 2023 to US$10,957 million and further declined in 2024 to US$9,245 million, indicating some volatility after the peak in 2022 but remaining positive.
- Total assets
- Total assets displayed a consistent increasing trend throughout the period. Starting from US$62,618 million in 2020, the asset base expanded to US$90,661 million in 2021 and showed more moderate growth to US$93,829 million in 2022. Further increases were observed in 2023 and 2024, reaching US$95,924 million and US$122,780 million respectively, with a notable acceleration in growth between 2023 and 2024.
- Return on Assets (ROA)
- ROA mirrors the pattern observed in net income. It shifted from a negative figure of -4.31% in 2020 to a positive 8.91% in 2021, indicating improved asset profitability. The peak ROA occurred in 2022 at 19.91%, aligning with the highest net income in the same year. Afterwards, there was a decline in ROA values to 11.42% in 2023 and further down to 7.53% in 2024, reflecting a reduction in asset efficiency though still remaining considerably above the 2020 level.
- Overall insights
- The data reveals a strong recovery and growth phase from 2020 to 2022 with substantial improvements in profitability and asset utilization. Despite a decline in net income and ROA after 2022, the company maintains positive earnings and ongoing asset growth through 2024. The increase in total assets, especially the marked rise in the last reported year, suggests continued investment or acquisition activity. The fluctuations in profitability may be influenced by market conditions or operational factors affecting income generation relative to asset size.