ConocoPhillips (COP)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	25,065,000	25,903,000	29,173,000	33,653,000	36,311,000	35,782,000	31,966,000	27,985,000	22,718,000	17,439,000	12,892,000	8,363,000	4,746,000	5,266,000	7,431,000	9,910,000	14,233,000	16,937,000	18,347,000	18,183,000
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	49,279,000	47,745,000	47,531,000	47,783,000	48,003,000	49,079,000	50,202,000	49,218,000	45,406,000	44,115,000	44,276,000	43,155,000	29,849,000	30,783,000	31,493,000	31,315,000	34,981,000	35,146,000	32,976,000	32,859,000
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%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $25,065,000K ÷ ($—K + $49,279,000K)
= 50.86%

Conoco Phillips has shown a fluctuating trend in its return on total capital over the past eight quarters. The company's return on total capital ranged from a low of 24.13% in Q4 2023 to a high of 42.22% in Q4 2022. The performance peaked in Q4 2022, gradually decreasing before experiencing a significant drop in Q4 2023. Despite this decline, the return on total capital remained above 24% throughout the period, indicating the company's ability to generate profit relative to its total invested capital. The fluctuations in the return on total capital suggest that Conoco Phillips may be experiencing varying levels of profitability and efficiency in capital utilization over the quarters analyzed.