ConocoPhillips (COP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Conoco Phillips' solvency ratios provide insights into the company's ability to meet its long-term financial obligations. Looking at the data over the past eight quarters, we observe that the debt-to-assets ratio has remained relatively stable around 0.18 to 0.20, indicating that between 18% to 20% of the company's total assets are funded by debt. This suggests a moderate level of leverage in Conoco Phillips' capital structure.
Similarly, the debt-to-capital ratio has shown consistency, hovering around 0.26 to 0.29 over the same period. This ratio indicates that debt constitutes approximately 26% to 29% of the company's total capital, which includes both debt and equity. This reflects a balanced mix of debt and equity financing in Conoco Phillips' capital structure.
When examining the debt-to-equity ratio, we observe a slightly wider range of values, from 0.35 to 0.40. This ratio indicates how much of the company's equity is financed by debt, with values ranging from 35% to 40% over the quarters analyzed. Despite some fluctuations, the debt-to-equity ratio remains within a reasonable range, indicating a manageable level of debt relative to equity.
Lastly, the financial leverage ratio, which measures the company's overall debt level in relation to its equity, shows relatively stable values between 1.87 to 1.96. This suggests that Conoco Phillips maintains a consistently moderate level of financial leverage, with the company financing a significant portion of its assets through debt.
Overall, based on the solvency ratios analyzed, Conoco Phillips appears to have a well-structured and sustainable capital base with a balanced mix of debt and equity financing, allowing the company to efficiently meet its long-term financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 26.66 | 30.65 | 34.65 | 38.82 | 34.42 | 33.01 | 28.93 | 25.08 | 20.18 | 15.71 | 11.81 | 7.77 | 4.49 | 3.25 | 5.43 | 7.32 | 10.14 | 19.81 | 16.37 | 15.94 |
Conoco Phillips' interest coverage ratio, which measures the company's ability to meet its interest payments on outstanding debt, has shown fluctuations over the past 8 quarters. The data indicates a consistent trend of strong interest coverage, with the ratio consistently above 20 in each quarter.
In Q4 2023, the interest coverage ratio was 44.74, signaling a substantial improvement compared to the previous quarter's ratio of 23.45. This significant increase suggests that Conoco Phillips had more than enough operating income to cover its interest expenses in Q4 2023.
Overall, the interest coverage ratio for Conoco Phillips has demonstrated stability and adequacy in meeting its interest obligations over the analyzed period. The company's ability to generate earnings to cover interest expenses is essential for maintaining financial health and sustainability. It is worth noting that a higher interest coverage ratio indicates a lower risk of default on debt obligations, reflecting positively on the company's creditworthiness.