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ConocoPhillips (ConocoPhillips) Altman Z-Score : 3.75 (As of Jun. 19, 2024)


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What is ConocoPhillips Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 3.76 is strong.

ConocoPhillips has a Altman Z-Score of 3.75, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for ConocoPhillips's Altman Z-Score or its related term are showing as below:

COP' s Altman Z-Score Range Over the Past 10 Years
Min: 0.99   Med: 2.4   Max: 4.62
Current: 3.76

During the past 13 years, ConocoPhillips's highest Altman Z-Score was 4.62. The lowest was 0.99. And the median was 2.40.


ConocoPhillips Altman Z-Score Historical Data

The historical data trend for ConocoPhillips's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ConocoPhillips Altman Z-Score Chart

ConocoPhillips Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.11 1.89 2.94 4.62 3.86

ConocoPhillips Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.31 4.23 4.08 3.86 4.03

Competitive Comparison of ConocoPhillips's Altman Z-Score

For the Oil & Gas E&P subindustry, ConocoPhillips's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ConocoPhillips's Altman Z-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, ConocoPhillips's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where ConocoPhillips's Altman Z-Score falls into.



ConocoPhillips Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

ConocoPhillips's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0373+1.4*0.6387+3.3*0.1744+0.6*2.7679+1.0*0.5787
=3.75

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2024:
Total Assets was $95,348 Mil.
Total Current Assets was $13,721 Mil.
Total Current Liabilities was $10,163 Mil.
Retained Earnings was $60,895 Mil.
Pre-Tax Income was 3808 + 4264 + 4100 + 3362 = $15,534 Mil.
Interest Expense was -285 + -298 + -262 + -247 = $-1,092 Mil.
Revenue was 13848 + 14729 + 14250 + 12351 = $55,178 Mil.
Market Cap (Today) was $127,387 Mil.
Total Liabilities was $46,023 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(13721 - 10163)/95348
=0.0373

X2=Retained Earnings/Total Assets
=60895/95348
=0.6387

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(15534 - -1092)/95348
=0.1744

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=127386.710/46023
=2.7679

X5=Revenue/Total Assets
=55178/95348
=0.5787

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

ConocoPhillips has a Altman Z-Score of 3.75 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


ConocoPhillips  (NYSE:COP) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


ConocoPhillips Altman Z-Score Related Terms

Thank you for viewing the detailed overview of ConocoPhillips's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


ConocoPhillips (ConocoPhillips) Business Description

Address
925 North Eldridge Parkway, Houston, TX, USA, 77079
ConocoPhillips is a U.S.-based independent exploration and production firm. In 2022, it produced 1.2 million barrels per day of oil and natural gas liquids and 3.1 billion cubic feet per day of natural gas, primarily from Alaska and the Lower 48 in the United States and Norway in Europe and several countries in Asia-Pacific and the Middle East. Proven reserves at year-end 2022 were 6.6 billion barrels of oil equivalent.
Executives
Timothy A Leach director, officer: Executive Vice President 7220 MEADOW ROAD, DALLAS TX 75230
Andrew D Lundquist officer: SVP 5205 N O'CONNOR BLVD, SUITE 200, IRVING TX 75039
Sharmila Mulligan director SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Ryan Michael Lance officer: Senior Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
C William Giraud officer: Senior Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Kirk L. Johnson officer: Senior Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Caroline Maury Devine director ATLANTIC COAST AIRLINES INC, 45200 BUSINESS COURT, DULLES VA 20166
R A Walker director 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Nicholas G Olds officer: Senior Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Christopher P. Delk officer: Vice President, Controller SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Kelly Brunetti Rose officer: SVP & General Counsel SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Andrew M. O'brien officer: Senior Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Dennis V Arriola director 162 CANCO ROAD, PORTLAND ME 04103
Jody Freeman director SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Jack F Harper officer: Executive Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084

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