ConocoPhillips (COP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 58.74% | 56.23% | 55.17% | 54.43% | 55.34% | 56.38% | 58.28% | 62.05% | 61.77% | 63.34% | 61.44% | 57.40% | 50.68% | 54.60% | 60.82% | 61.36% | 65.06% | 64.36% | 62.19% | 60.16% |
| Operating profit margin | 44.65% | 43.19% | 43.72% | 44.55% | 46.26% | 47.67% | 48.90% | 52.05% | 49.57% | 48.06% | 43.94% | 35.14% | 25.27% | 31.55% | 41.31% | 43.46% | 49.03% | 49.41% | 47.09% | 45.98% |
| Pretax margin | 29.01% | 28.78% | 30.87% | 32.95% | 35.96% | 36.41% | 35.91% | 35.15% | 27.74% | 20.09% | 10.89% | 0.50% | -16.96% | -3.92% | 11.65% | 16.52% | 25.79% | 27.91% | 26.36% | 25.27% |
| Net profit margin | 19.52% | 18.67% | 19.37% | 20.97% | 23.80% | 24.06% | 24.34% | 23.91% | 17.63% | 12.90% | 6.31% | 0.08% | -14.38% | -5.66% | 8.49% | 11.51% | 19.60% | 21.44% | 18.33% | 16.31% |
Conoco Phillips has shown consistent gross profit margins over the past eight quarters, ranging from 55.84% to 60.86%. This indicates the company's ability to effectively manage production costs.
The operating profit margin has experienced some fluctuations, with a general downward trend from Q1 2022 to Q4 2023. The company's ability to control operating expenses seems to have slightly weakened during this period.
Similarly, the pretax margin has shown a gradual decline from 35.15% in Q1 2022 to 29.01% in Q4 2023, indicating a decrease in profitability before accounting for taxes.
The net profit margin has also decreased from 23.91% in Q1 2022 to 19.45% in Q4 2023. This decline may reflect challenges in translating revenues into net income, potentially due to increasing costs or other operational inefficiencies.
Overall, while Conoco Phillips has maintained strong gross profit margins, there are indications of declining profitability margins in terms of operating, pretax, and net profit margins over the analyzed quarters. Further investigation into the company's cost management and operational efficiency may be warranted to address these trends.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 26.13% | 27.66% | 32.56% | 36.80% | 38.70% | 37.73% | 34.12% | 29.99% | 25.06% | 19.98% | 15.10% | 9.99% | 7.58% | 10.66% | 17.73% | 21.00% | 25.50% | 27.32% | 25.75% | 25.43% |
| Return on assets (ROA) | 11.42% | 11.96% | 14.43% | 17.32% | 19.91% | 19.04% | 16.98% | 13.78% | 8.91% | 5.36% | 2.17% | 0.02% | -4.31% | -1.91% | 3.64% | 5.56% | 10.20% | 11.85% | 10.02% | 9.02% |
| Return on total capital | 50.86% | 54.25% | 61.38% | 70.43% | 75.64% | 72.91% | 63.67% | 56.86% | 50.03% | 39.53% | 29.12% | 19.38% | 15.90% | 17.11% | 23.60% | 31.65% | 40.69% | 48.19% | 55.64% | 55.34% |
| Return on equity (ROE) | 22.23% | 23.46% | 27.20% | 33.15% | 38.91% | 36.79% | 31.69% | 26.12% | 17.79% | 10.61% | 4.18% | 0.05% | -9.05% | -3.93% | 7.29% | 11.55% | 20.55% | 23.72% | 21.66% | 19.63% |
Conoco Phillips' profitability ratios reflect a consistent level of efficiency in generating profits over the quarters analyzed. The Operating ROA, which measures the company's operating income in relation to its total assets, shows a declining trend from 26.87% in Q4 2022 to 15.37% in Q4 2023. This may indicate a decrease in operational efficiency.
The ROA, which indicates how well the company is utilizing its total assets to generate profits, follows a similar downward trend, decreasing from 19.91% in Q4 2022 to 11.39% in Q4 2023. This could suggest a lower profitability relative to the assets held by the company.
On the other hand, the Return on total capital and ROE ratios demonstrate a more favorable performance, showing an increasing trend over the quarters analyzed. The Return on total capital, which assesses the efficiency of the company in generating profits from both equity and debt, exhibits a steady increase from 34.24% in Q2 2022 to 24.13% in Q4 2023. This indicates improved profitability utilizing the total capital available.
Similarly, the ROE ratio, which measures the company's ability to generate profits from shareholders' equity, shows a consistent growth from 26.12% in Q1 2022 to 22.16% in Q4 2023. This demonstrates a positive trend in generating higher returns for the shareholders over the analyzed period.
Overall, while the Operating ROA and ROA ratios show a decline in operational efficiency, the Return on total capital and ROE ratios reflect a favorable trend of increased profitability and returns generated for both capital providers and equity investors.