ConocoPhillips (COP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.93% | 48.73% | 38.24% | 32.22% | 4.48% |
| Operating profit margin | 23.35% | 46.72% | 35.79% | 30.56% | -10.06% |
| Pretax margin | 24.97% | 28.15% | 35.96% | 27.74% | -16.72% |
| Net profit margin | 16.89% | 18.94% | 23.80% | 17.63% | -14.13% |
ConocoPhillips has shown a significant improvement in its profitability ratios over the period from December 31, 2020, to December 31, 2024.
The gross profit margin increased steadily from 4.48% in 2020 to 48.73% in 2023, indicating the company's ability to efficiently manage its production costs and generate higher profits from its core operations. However, there was a slight decline in 2024 to 29.93%, which may be attributed to various factors affecting the company's cost structure.
The operating profit margin also exhibited a remarkable upward trend, starting from -10.06% in 2020 and reaching 46.72% in 2023. This suggests that ConocoPhillips effectively controlled its operating expenses and enhanced its operating efficiency. Despite a decrease in 2024 to 23.35%, the company still maintained a healthy level of profitability at the operating level.
The pretax margin fluctuated during the five-year period, with a peak of 35.96% in 2022 and a low of 24.97% in 2024. This ratio indicates the proportion of earnings before taxes relative to total sales. Although there were variations, ConocoPhillips managed to generate pre-tax profits consistently over the years.
The net profit margin, representing the company's bottom-line profitability, improved from -14.13% in 2020 to 23.80% in 2022. However, there was a slight decline to 16.89% in 2024. This ratio reflects ConocoPhillips' net income as a percentage of sales after accounting for all expenses, including taxes.
Overall, ConocoPhillips demonstrated a positive trend in profitability ratios during the period, showcasing its ability to enhance operational efficiency and effectively manage costs to drive bottom-line growth.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.41% | 28.18% | 29.94% | 15.45% | -3.02% |
| Return on assets (ROA) | 7.53% | 11.42% | 19.91% | 8.91% | -4.24% |
| Return on total capital | 1,045.26% | 35.21% | 61.00% | 30.48% | -6.98% |
| Return on equity (ROE) | 653.82% | 22.23% | 38.91% | 17.79% | -8.89% |
ConocoPhillips has shown a positive trend in profitability ratios over the years.
- Operating return on assets (Operating ROA) has significantly improved from -3.02% in 2020 to 29.94% in 2022 before tapering off slightly to 10.41% in 2024. This indicates that the company's operating activities have been increasingly efficient in generating profits from its total assets.
- Return on assets (ROA) has also exhibited growth, moving from -4.24% in 2020 to 19.91% in 2022 before settling at 7.53% in 2024. This shows the company's ability to generate earnings relative to its total assets has been on an upward trajectory, although there was a slight decline in 2024.
- Return on total capital has seen a remarkable rise, soaring from -6.98% in 2020 to an exceptionally high 1,045.26% in 2024, after strong performances in 2021 and 2022. This suggests that the company has been efficiently using its total capital to generate returns for its investors.
- Return on equity (ROE) showcases a similar trend of significant growth, climbing from -8.89% in 2020 to an exceptional 653.82% in 2024, with substantial improvements seen in 2021 and 2022 as well. This indicates that ConocoPhillips has been successful in generating profits for its shareholders relative to their equity investments.
Overall, ConocoPhillips has demonstrated an improvement in profitability metrics over the years, reflecting the company's ability to generate returns for its stakeholders through efficient use of assets and capital. However, the fluctuating trends in certain ratios, particularly in 2024, may warrant further analysis to understand the underlying factors driving these changes.