We now have the latest Balance Sheet, and much other useful information, in the 10-Q report ConocoPhillips submitted to the SEC. We updated our analysis to address the data in the 10-Q.
The GCFR gauge scores only changed slightly from the pre-10-Q analysis, as can be seen below:
- Cash Management: 10 of 25 (down from 12)
- Growth: 21 of 25 (unchanged)
- Profitability: 8 of 25 (unchanged)
- Value: 0 of 25 (unchanged)
- Overall: 26 of 100 (down from 27)
The data in the 10-Q did not change the result of our examination of ConocoPhillips's second-quarter Income Statement.
The updated Balance Sheet did change the values for some of the Cash Management metrics. The latest figures are listed below:
| June 2008 | 3 mos. ago | 12 mos. ago | |
| Current Ratio | 1.0 | 0.9 | 1.0 |
| LTD/Equity | 23.3% | 23.6% | 25.6% |
| Debt/CFO | 0.9 yrs | 0.9 yrs | 1.0 yrs |
| Inventory/CGS | N/A | N/A | N/A |
| Finished Goods/Inventory | N/A | N/A | N/A |
| Days of Sales Outstanding (DSO) | 28.2 days | 28.2 days | 27.5 days |
| Working Capital/Market Capitalization | -0.8% | -1.8% | 0.3% |
| Cash Conversion Cycle Time | -1.6 days | -2.5 days | -0.9 days |
The GCFR standard practice is to compute the Value gauge metrics and score using the share price at the end of the quarter. On 30 June, the closing price of Conoco shares was $94.39. However, the share price subsequently slid dramatically, ending July at $81.62.
The following table shows how the big drop in the price per share affected the Value metrics:
| 31 July 2008 | 30 June 2008 | 31 March 2008 | 30 June 2007 | |
| P/E | 7.2 | 8.3 | 9.7 | 11.9 |
| P/E to S&P 500 average P/E | 41% | 47% | 56% | 72% |
| Price/Revenue | 0.6 | 0.7 | 0.6 | 0.7 |
| Enterprise Value/Cash Flow (EV/CFO) | 5.9 | 6.7 | 5.8 | 6.4 |
| Value gauge score | 4 | 0 | 1 | 0 |
Conoco's valuation ratios can be compared with other companies in the Major Integrated Oil & Gas industry.
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