ConocoPhillips (COP)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 122,780,000 | 96,699,000 | 95,994,000 | 95,348,000 | 95,924,000 | 93,651,000 | 89,605,000 | 91,441,000 | 93,829,000 | 94,837,000 | 93,693,000 | 93,308,000 | 90,661,000 | 87,304,000 | 85,403,000 | 62,618,000 | 62,618,000 | 63,157,000 | 63,046,000 | 65,033,000 |
| 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 |
| Financial leverage ratio | 1.89 | 1.94 | 1.93 | 1.93 | 1.95 | 1.96 | 1.89 | 1.91 | 1.95 | 1.93 | 1.87 | 1.90 | 2.00 | 1.98 | 1.93 | 2.10 | 2.10 | 2.05 | 2.00 | 2.08 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $122,780,000K ÷ $64,796,000K
= 1.89
The financial leverage ratio for ConocoPhillips has shown some fluctuations over the past few years, ranging from a high of 2.10 in December 2020 to a low of 1.87 in June 2022. The ratio measures the company's use of debt to finance its operations and is calculated by dividing total assets by total equity.
A financial leverage ratio above 1 indicates that the company is relying more on debt to finance its operations, while a ratio below 1 signifies a stronger reliance on equity.
ConocoPhillips' financial leverage ratio has generally been within a range of 1.87 to 2.10 during the period under review. The downward trend in the ratio from 2021 to 2024 indicates that the company has been reducing its reliance on debt financing and enhancing its equity position. This could be a strategic move to strengthen its financial stability and reduce the risks associated with high debt levels.
Overall, a decreasing trend in the financial leverage ratio is typically viewed positively by investors and stakeholders as it indicates a healthier capital structure and lower financial risk for the company. However, it is essential for ConocoPhillips to maintain a balanced approach to capital structure and ensure sufficient liquidity to support its operations and growth strategies.
Peer comparison
Dec 31, 2024