Phillips 66 (PSX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 146,507,000 | 178,483,000 | 114,646,000 | 65,436,000 | 110,275,000 |
| Property, plant and equipment | US$ in thousands | 35,414,000 | 34,904,000 | 22,176,000 | 23,452,000 | 23,502,000 |
| Fixed asset turnover | 4.14 | 5.11 | 5.17 | 2.79 | 4.69 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $146,507,000K ÷ $35,414,000K
= 4.14
The fixed asset turnover ratio for Phillips 66 has experienced fluctuations over the past five years. In 2023, the ratio stands at 4.13, representing a decrease from the previous year's ratio of 4.83. This suggests that the company generated $4.13 in revenue for every dollar invested in fixed assets during 2023, showcasing a lower efficiency in utilizing its fixed assets compared to the previous year.
Looking back, the trend in fixed asset turnover has been relatively strong, peaking at 4.97 in 2021. This indicates that Phillips 66 was highly effective in generating revenue from its fixed assets in 2021. However, there was a significant drop in 2020 when the ratio plummeted to 2.70, signifying a decline in the efficiency of fixed asset utilization.
In 2019, the fixed asset turnover ratio for Phillips 66 was 4.52, reflecting a solid performance in leveraging its fixed assets to generate revenue. It is important for the company to closely monitor and manage this ratio to ensure optimal utilization of fixed assets in driving profitability and operational efficiency.
Peer comparison
Dec 31, 2023