09 March 2008

COP: Financial Analysis through December 2007 (Updated)

ConocoPhillips's (COP) preliminary financial results for the quarter and year that ended on 31 December 2007 did not include a Balance Sheet. This omission is typical for Conoco, and it was later rectified in the 10-K filed with the SEC. In our original analysis of these results, we simply assumed that the Balance Sheet did not change between 30 September and 31 December. We have now updated the analysis to take the latest data in the 10-K into account.

The new data did not significantly change the Gauge scores, as can be seen below:

The data in the 10-K didn't change our examination of Conoco's fourth-quarter Income Statement, which was included here.

The updated Balance Sheet did change the values for some of the Cash Management metrics. The latest figures are listed below:

The metrics that contributed the most to the score were:
The metrics that contributed the least to the score were:

With the new way we are calculating the Accrual Ratio, the figure dropped (a good thing) from 14.6 percent in 2006 to -2.3 percent in 2007. The decreasing Accrual Ratio indicates that more of the company's Net Income is due to CFO, and, therefore, less is due to changes in non-operational Balance Sheet accruals.

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