ConocoPhillips (COP)

Financial leverage ratio

		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
Total assets	US$ in thousands	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	83,693,000	62,618,000	63,157,000	63,046,000	65,033,000	70,514,000	70,340,000	71,261,000	71,498,000
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
Financial leverage ratio		1.95	1.96	1.89	1.91	1.95	1.93	1.87	1.90	2.00	1.98	1.93	1.94	2.10	2.05	2.00	2.08	2.02	2.00	2.16	2.18

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $95,924,000K ÷ $49,279,000K
= 1.95

The financial leverage ratio of Conoco Phillips has been relatively stable over the past eight quarters, ranging from 1.87 to 1.96. The ratio indicates that the company relies on debt financing to a significant extent, with an average leverage ratio of approximately 1.92 during this period. While a high leverage ratio can amplify returns on equity when the company is performing well, it also indicates higher financial risk due to increased debt obligations. Therefore, investors and stakeholders should closely monitor Conoco Phillips' ability to meet its debt obligations and manage its leverage effectively to ensure long-term financial stability and profitability.