ConocoPhillips (COP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 21.21 | 21.22 | 39.77 | 25.71 | 17.91 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 15.54 | 13.38 | 13.30 | 11.37 | 2.80 |
Activity ratios provide insight into how efficiently a company is managing its assets and liabilities. Let's analyze the activity ratios of ConocoPhillips based on the provided data:
1. Inventory Turnover:
- ConocoPhillips' inventory turnover has shown fluctuation over the years. It increased significantly from 2020 to 2022, indicating that the company managed its inventory more efficiently during this period. However, there was a decline in 2023 and 2024, suggesting a potential need for inventory management improvements in these years.
2. Receivables Turnover:
- The data indicates that receivables turnover is not available for the years provided. This could be due to the nature of ConocoPhillips' business, where receivables turnover may not be a significant metric or easily calculable.
3. Payables Turnover:
- Similar to receivables turnover, payables turnover is not available in the data provided. This could indicate that ConocoPhillips may not have a significant focus on managing its payables turnover ratio, or it could be a result of the industry practices.
4. Working Capital Turnover:
- ConocoPhillips' working capital turnover has shown a positive trend from 2020 to 2024, indicating that the company effectively utilized its working capital to generate revenue. The consistent increase in working capital turnover reflects efficient operational management and capital utilization by ConocoPhillips.
Overall, based on the activity ratios provided, ConocoPhillips appears to have managed its inventory efficiently, continually improved its working capital turnover, and may not place significant emphasis on receivables and payables turnover ratios. Monitoring these ratios can help the management identify areas for improvement and enhance overall operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 17.21 | 17.20 | 9.18 | 14.20 | 20.38 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
ConocoPhillips' Days of Inventory on Hand (DOH) decreased from 20.38 days in December 2020 to 14.20 days in December 2021 and further to 9.18 days in December 2022 before increasing to 17.20 days in December 2023 and 17.21 days in December 2024.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis.
It is important to note that lower days of inventory on hand indicate that ConocoPhillips is managing its inventory efficiently by selling inventory quickly, which can lead to reduced carrying costs and potential for increased liquidity. However, the increase in DOH in 2023 and 2024 may indicate a build-up of inventory or slowing sales.
Without information on DSO and payables, the complete analysis of ConocoPhillips' activity ratios is limited. Monitoring these ratios over time can provide insights into the company's operational efficiency and management of working capital.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.21 | 0.71 | 0.47 |
| Total asset turnover | 0.45 | 0.60 | 0.84 | 0.51 | 0.30 |
The trend of ConocoPhillips' long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, reveals important insights into the efficiency of the company's asset utilization over the years.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio increased consistently from 0.47 in 2020 to 1.21 in 2022, indicating that ConocoPhillips was able to generate more revenue from its fixed assets over this period.
- However, the ratio was not provided for 2023 and 2024, making it challenging to assess the trend for those years specifically.
2. Total Asset Turnover:
- The Total Asset Turnover ratio showed a fluctuating pattern, increasing from 0.30 in 2020 to 0.84 in 2022, suggesting an improvement in the efficiency of utilizing all assets to generate revenue.
- There was a decrease in the ratio to 0.60 in 2023 followed by a further decline to 0.45 in 2024, indicating a potential decline in the overall efficiency of ConocoPhillips in generating revenue from its total assets during these years.
In summary, the Fixed Asset Turnover ratio demonstrated a generally improving trend from 2020 to 2022, while the Total Asset Turnover ratio exhibited more volatility, with fluctuations in efficiency observed over the years. Additional context and industry comparisons would help provide a comprehensive assessment of ConocoPhillips' performance in terms of long-term asset utilization.