ConocoPhillips (COP)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 14,780,000 | 15,962,000 | 16,820,000 | 16,492,000 | 16,478,000 | 17,531,000 | 20,764,000 | 25,082,000 | 27,910,000 | 27,040,000 | 23,104,000 | 18,540,000 | 13,635,000 | 8,197,000 | 4,288,000 | -34,000 | -3,263,000 | -827,000 | 1,404,000 | 4,673,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 64,796,000 | 49,881,000 | 49,745,000 | 49,325,000 | 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 | 29,849,000 | 29,849,000 | 30,783,000 | 31,493,000 | 31,315,000 |
| Return on total capital | 22.81% | 32.00% | 33.81% | 33.44% | 33.44% | 36.72% | 43.69% | 52.49% | 58.14% | 55.09% | 46.02% | 37.67% | 30.03% | 18.58% | 9.68% | -0.11% | -10.93% | -2.69% | 4.46% | 14.92% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $14,780,000K ÷ ($—K + $64,796,000K)
= 22.81%
ConocoPhillips' return on total capital has displayed significant fluctuation over the past few years, ranging from negative values to positive values. The trend indicates a gradual improvement in the company's ability to generate returns on the total capital employed. However, it's important to note that there have been periods of volatility, with some quarters showing substantial growth followed by slight declines in subsequent quarters.
The data shows that the return on total capital steadily increased from March 2022 to December 2022, reaching a peak of 58.14%. However, the return declined in the following quarters but remained relatively stable between 33.44% and 46.02%.
Overall, the trend suggests that ConocoPhillips has been able to enhance its efficiency in utilizing capital to generate returns, although periodic variations in performance are evident. Monitoring this ratio over time will be crucial in assessing the company's continued effectiveness in deploying capital for shareholder value creation.
Peer comparison
Dec 31, 2024