Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
ConocoPhillips, long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The data reveals notable fluctuations in the company's asset and equity turnover ratios over the five-year period. These trends provide insights into the company's efficiency in utilizing its assets and equity to generate sales.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased significantly from 0.47 in 2020 to a peak of 1.21 in 2022, indicating improved efficiency in using fixed assets to generate revenue during this period. However, this efficiency declined in the following years, dropping to 0.80 in 2023 and further to 0.58 in 2024. This suggests a reduction in productivity or increased fixed asset base not matched by proportional sales growth in recent years.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The trend closely mirrors the net fixed asset turnover ratio, starting at 0.46 in 2020 and peaking at 1.20 in 2022, followed by declines to 0.79 and 0.57 in 2023 and 2024 respectively. The similarity indicates that incorporating operating leases and right-of-use assets does not significantly alter the overall pattern of fixed asset efficiency.
- Total Asset Turnover
- The total asset turnover ratio shows a similar pattern of growth followed by decline. It increased from 0.30 in 2020 to 0.84 in 2022, demonstrating improved overall asset utilization. However, it decreased to 0.59 in 2023 and further to 0.45 in 2024, highlighting a reduction in overall asset productivity or revenue generation relative to total assets.
- Equity Turnover
- Equity turnover improved markedly from 0.63 in 2020 to a high of 1.64 in 2022, suggesting a period of enhanced efficiency in generating sales from shareholders' equity. This ratio then declined to 1.14 in 2023 and to 0.84 in 2024, indicating a reduced ability to generate revenue from equity investments in recent years.
Overall, the data indicates that the company experienced a period of increasing efficiency in asset and equity utilization up to 2022. Following this peak, there has been a consistent decline across all turnover ratios through 2024. This trend may reflect changes in operational effectiveness, asset base expansion without proportional revenue growth, or other underlying business factors impacting productivity.
Net Fixed Asset Turnover
ConocoPhillips, net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Net properties, plants and equipment, net of accumulated DD&A | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Sales and other operating revenues ÷ Net properties, plants and equipment, net of accumulated DD&A
= ÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- Sales and other operating revenues exhibited a significant increase from 18,784 million US dollars in 2020 to 78,494 million US dollars in 2022. This represents a more than fourfold rise over the two-year span. However, after peaking in 2022, revenues declined to 56,141 million in 2023 and further slightly decreased to 54,745 million in 2024, indicating a downward correction following the earlier rapid growth.
- Net Properties, Plants and Equipment (Net of Accumulated DD&A)
- The value of net properties, plants, and equipment increased steadily over the period from 39,893 million dollars in 2020 to 94,356 million dollars in 2024. This continuous growth suggests ongoing capital investment and asset accumulation, especially with a notable acceleration between 2023 and 2024.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures efficiency in using fixed assets to generate revenue, rose from 0.47 in 2020 to a peak of 1.21 in 2022. This improvement indicates enhanced utilization of assets up to 2022. However, the ratio then declined to 0.80 in 2023 and further to 0.58 in 2024, signaling reduced efficiency in asset use despite the growth in asset base.
- Overall Analysis
- The data reveal a strong growth phase in revenues and asset base through 2022, accompanied by improved asset utilization. After 2022, the company faced a decline in sales and operational revenues, alongside a decrease in fixed asset turnover efficiency, despite continued expansion in net properties and equipment. This suggests that while investments in fixed assets continued, the ability to generate sales from these assets diminished in the latest periods reported.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
ConocoPhillips, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Net properties, plants and equipment, net of accumulated DD&A | ||||||
| Right-of-use assets, operating leases (included in Other assets) | ||||||
| Net properties, plants and equipment, net of accumulated DD&A (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales and other operating revenues ÷ Net properties, plants and equipment, net of accumulated DD&A (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Sales and other operating revenues
- The sales and operating revenues demonstrate a substantial increase from 2020 to 2022, rising from 18,784 million US dollars to 78,494 million US dollars. However, this upward trend reverses in the subsequent years, with revenues declining to 56,141 million in 2023 and further to 54,745 million in 2024. This indicates a peak in 2022 followed by a notable contraction in sales over the next two years.
- Net properties, plants and equipment, net of accumulated DD&A
- The net value of properties, plants, and equipment shows a consistent upward trajectory throughout the period. Starting from 40,676 million US dollars in 2020, there is a marked increase to 65,576 million in 2021, followed by a slight dip in 2022 to 65,402 million. From 2022 onwards, the asset base expands significantly, reaching 70,735 million in 2023 and substantially rising to 95,373 million by 2024. This trend suggests ongoing investment and capital expenditure in fixed assets over the analyzed timeframe.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio reflects the efficiency with which the company uses its fixed assets to generate sales. This ratio increases sharply from 0.46 in 2020 to 1.2 in 2022, highlighting improved asset utilization and sales generation relative to fixed assets up to that point. Post-2022, the ratio declines to 0.79 in 2023 and further to 0.57 in 2024, indicating a reduction in asset turnover, which could be related to the significant increase in fixed assets combined with declining sales in the later years.
- Overall Analysis
- The data reveals a period of rapid growth in sales and asset investment until 2022, followed by a contraction in sales and a continued increase in asset base thereafter. The peak in sales in 2022 coincides with the highest asset turnover ratio, suggesting optimal asset efficiency at that point. Subsequently, as the asset base continues to expand, the decrease in sales results in lower asset turnover ratios, indicating potential challenges in effectively utilizing the increased fixed asset investments to sustain revenue growth.
Total Asset Turnover
ConocoPhillips, total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Total Asset Turnover, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Sales and other operating revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data demonstrates notable fluctuations across the analyzed periods, indicating variability in performance and asset utilization.
- Sales and Other Operating Revenues
- There was a substantial increase in revenues from 18,784 million US dollars in 2020 to a peak of 78,494 million US dollars in 2022. Following this peak, revenues declined over the next two years, reaching 54,745 million US dollars by 2024. This suggests a significant surge in sales activity or pricing power in 2021 and 2022, followed by a contraction or normalization in subsequent years.
- Total Assets
- Total assets showed a consistent upward trend, rising from 62,618 million US dollars in 2020 to 122,780 million US dollars in 2024. This steady increase reflects ongoing investment or growth in asset base during the period, with a marked acceleration between 2023 and 2024.
- Total Asset Turnover
- The total asset turnover ratio, which measures the efficiency of asset usage to generate sales, improved significantly from 0.3 in 2020 to a high of 0.84 in 2022. However, it subsequently declined to 0.59 in 2023 and further to 0.45 in 2024. This pattern indicates that the company’s efficiency in utilizing its assets peaked along with its revenue in 2022 but decreased as assets continued to grow while sales fell.
Overall, the data points to a period of rapid revenue growth and improved asset utilization until 2022, followed by a slowdown in sales coupled with continued asset expansion. This divergence led to diminished asset turnover, suggesting less effective use of assets to generate revenues in the later years.
Equity Turnover
ConocoPhillips, equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Common stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Equity Turnover, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Sales and other operating revenues ÷ Common stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales and other operating revenues exhibited significant fluctuations over the observed period. Initially, revenues were recorded at approximately 18,784 million USD at the end of 2020, followed by a notable increase to 45,828 million USD in 2021 and a peak of 78,494 million USD in 2022. Subsequent years saw a decline, with revenues falling to 56,141 million USD in 2023 and slightly decreasing further to 54,745 million USD in 2024. This pattern indicates a substantial growth phase from 2020 through 2022, succeeded by a contraction in the later years.
- Common Stockholders’ Equity
- Common stockholders’ equity demonstrated a steady upward trend throughout the five-year period. Beginning at 29,849 million USD in 2020, equity increased substantially to 45,406 million USD in 2021, followed by moderate growth to 48,003 million USD in 2022 and 49,279 million USD in 2023. A more pronounced rise occurred in 2024, with equity reaching 64,796 million USD. This steady increase implies strengthening of the company’s capital base and potential accumulation of retained earnings or capital injections.
- Equity Turnover Ratio
- The equity turnover ratio, representing the relationship between revenues and equity, revealed considerable variability. It started at a low level of 0.63 in 2020, rose sharply to 1.01 in 2021, and peaked at 1.64 in 2022, reflecting enhanced utilization of equity to generate sales. Thereafter, the ratio declined to 1.14 in 2023 and further to 0.84 in 2024, indicating a reduction in revenue generation efficiency relative to equity employed. The decline corresponds with the reduction in revenues and the simultaneous increase in equity during the latter years.
- Summary Insights
- Overall, the data suggest a period of rapid revenue growth coinciding with moderate equity growth in the early years, leading to improved equity turnover ratios. However, from 2023 onward, revenues declined while equity continued to grow, resulting in diminished turnover efficiency. This divergence may point to strategic shifts, capital accumulation, or market conditions affecting revenue generation capacity. The increase in equity alongside a decrease in equity turnover could imply a conservative financial approach, possibly preparing for future investments or managing risk.