ConocoPhillips (COP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 122,780,000 | 95,924,000 | 93,829,000 | 90,661,000 | 62,618,000 |
| Total stockholders’ equity | US$ in thousands | 1,414,000 | 49,279,000 | 48,003,000 | 45,406,000 | 29,849,000 |
| Financial leverage ratio | 86.83 | 1.95 | 1.95 | 2.00 | 2.10 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $122,780,000K ÷ $1,414,000K
= 86.83
The financial leverage ratio of ConocoPhillips has shown a decreasing trend from 2.10 in December 2020 to 1.95 in December 2022 and beyond. This indicates that the company's reliance on debt to finance its operations has been gradually decreasing during this period. However, there is a significant anomaly in December 2024, where the financial leverage ratio spiked to 86.83. This anomaly warrants further investigation as such a high ratio may signal potential financial instability or irregularities in the company's capital structure. Overall, the decreasing trend in the financial leverage ratio up to 2022 is a positive sign of improved financial health and risk management.
Peer comparison
Dec 31, 2024