ConocoPhillips (COP)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 12,783,000 | 27,035,000 | 28,094,000 | 14,004,000 | -1,890,000 |
| Total assets | US$ in thousands | 122,780,000 | 95,924,000 | 93,829,000 | 90,661,000 | 62,618,000 |
| Operating ROA | 10.41% | 28.18% | 29.94% | 15.45% | -3.02% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $12,783,000K ÷ $122,780,000K
= 10.41%
ConocoPhillips' operating return on assets (operating ROA) has exhibited significant fluctuations over the past five years. The metric stood at -3.02% as of December 31, 2020, indicating a negative return on the company's assets. However, there was a notable turnaround in 2021, with the operating ROA soaring to 15.45%, reflecting improved efficiency in generating profits from its assets.
The positive momentum continued into 2022, with the operating ROA further increasing to 29.94%, suggesting enhanced asset utilization and profitability. By December 31, 2023, the operating ROA remained strong at 28.18%, indicating sustained operational efficiency.
However, there was a decline in the operating ROA in 2024, dropping to 10.41%, albeit still above the 2021 level. This decline may signal challenges in maintaining or improving asset profitability in that particular year.
In conclusion, ConocoPhillips' operating ROA has seen fluctuations over the years, with notable improvements in asset efficiency and profitability from 2021 to 2023, although experiencing a slight dip in 2024. Tracking this metric can provide insights into the company's ability to generate returns from its asset base.
Peer comparison
Dec 31, 2024