ConocoPhillips (COP)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 10,957,000 | 18,680,000 | 8,079,000 | -2,701,000 | 7,189,000 |
| Total assets | US$ in thousands | 95,924,000 | 93,829,000 | 90,661,000 | 62,618,000 | 70,514,000 |
| ROA | 11.42% | 19.91% | 8.91% | -4.31% | 10.20% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $10,957,000K ÷ $95,924,000K
= 11.42%
Conoco Phillips' return on assets (ROA) has shown fluctuating performance over the past five years. In 2023, the ROA stood at 11.39%, reflecting a decrease from the previous year's 19.91%. This decline suggests that the company may have experienced challenges in generating profits relative to its assets in 2023. When compared to 2021 and 2019, where the ROA was 8.91% and 10.20% respectively, the 2023 figure still indicates a relatively stronger performance.
Notably, in 2020, Conoco Phillips reported a negative ROA of -4.31%, indicating that the company incurred losses relative to its assets during that period. The company managed to rebound from this negative performance in 2021 and has since maintained positive ROA values. However, the significant positive jump from 2022 to 2023 followed by the subsequent decline may warrant further examination to understand the factors contributing to these fluctuations.
Overall, while Conoco Phillips has demonstrated the ability to generate returns on its assets in recent years, the variability in the ROA figures underscores the importance of closely monitoring and analyzing the company's operational efficiency and profitability trends.
Peer comparison
Dec 31, 2023