Financial statement analysis and common stock valuation

Analysis of Debt

• Total Debt (Carrying Amount)
• Total Debt (Fair Value)
• Weighted-average Interest Rate on Debt
• Interest Costs Incurred
• Adjusted Interest Coverage Ratio

Capital Asset Pricing Model (CAPM)

CAPM is a theory concentrated with deriving the expected rates of return on risky assets based on the assets’ systematic risk levels. Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. It cannot be eliminated by diversification.

• Rates of Return
• Variance and Covariance
• Systematic Risk (β) Estimation
• Expected Rate of Return

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the ConocoPhillips suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Analysis of Revenues

• Revenues as Reported

Analysis of Long-term (Investment) Activity Ratios

Measures how efficiently ConocoPhillips generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
• Total Asset Turnover
• Equity Turnover

Analysis of Profitability Ratios

Measures the income of ConocoPhillips relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by ConocoPhillips.

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Analysis of Geographic Areas

ConocoPhillips operates in 12 regions: United States; Australia; Canada; China; Equatorial Guinea; Indonesia; Libya; Malaysia; Norway; Singapore; United Kingdom; and Other foreign countries.

• Area Asset Turnover
• Sales and other operating revenues
• Long-lived assets

Analysis of Reportable Segments

ConocoPhillips operates in 6 segments: Alaska; Lower 48 (L48); Canada; Europe, Middle East and North Africa (EMENA); Asia Pacific (AP); and Other International (OI).

• Segment Profit Margin
• Segment Return on Assets (Segment ROA)
• Segment Asset Turnover
• Segment Capital Expenditures to Depreciation
• Sales and other operating revenues
• Depreciation, depletion, amortization (DD&A)
• Net income (loss) attributable to ConocoPhillips
• Total assets
• Capital expenditures and investments

Income Statement

The income statement (statement of earnings) reports on the performance of ConocoPhillips, the result of its operating activities.