ConocoPhillips (COP)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.95 | 1.95 | 2.00 | 2.10 | 2.02 |
Conoco Phillips' solvency ratios provide insights into the company's ability to meet its financial obligations and manage its debt levels effectively.
The debt-to-assets ratio has shown a relatively stable trend over the past five years, ranging from 0.18 to 0.25. It indicates that, on average, Conoco Phillips has maintained a low level of financial leverage, meaning that only a small portion of its assets is funded through debt.
The debt-to-capital ratio also demonstrates a similar trend, with values fluctuating between 0.26 and 0.34. This ratio shows the proportion of the company's capital structure that is financed through debt. Conoco Phillips has generally kept this ratio at a moderate level, indicating a balanced mix of debt and equity in its capital structure.
The debt-to-equity ratio has shown a declining trend over the years, decreasing from 0.51 in 2020 to 0.38 in 2023. This suggests that the company has been reducing its reliance on debt financing in relation to shareholders' equity, which is a positive indicator of financial health.
The financial leverage ratio has also remained relatively stable, ranging from 1.95 to 2.10. This ratio measures the extent to which a company is using debt to finance its assets relative to its equity. Conoco Phillips' financial leverage ratio indicates that it has been able to maintain a reasonable level of leverage while supporting its growth and operations.
Overall, based on the solvency ratios analyzed, Conoco Phillips appears to have a solid financial position with manageable debt levels and an appropriate capital structure, which is vital for long-term sustainability and financial stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 18.63 | 32.05 | 14.11 | -2.49 | 12.11 |
Conoco Phillips' interest coverage ratio has shown significant improvement over the past five years. The ratio increased from -2.01 in 2020 to 44.74 in 2023, indicating a substantial improvement in the company's ability to cover its interest expenses from its earnings. This upward trend demonstrates a strengthened financial position and a better capacity to meet its debt obligations through operating income. The consistent improvement in the interest coverage ratio reflects positively on Conoco Phillips' financial health and ability to service its debt in a sustainable manner.