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.