Phillips 66 (PSX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 130,904,000 | 153,972,000 | 106,973,000 | 64,920,000 | 99,435,000 |
| Inventory | US$ in thousands | 3,750,000 | 3,276,000 | 3,394,000 | 3,893,000 | 3,776,000 |
| Inventory turnover | 34.91 | 47.00 | 31.52 | 16.68 | 26.33 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $130,904,000K ÷ $3,750,000K
= 34.91
The inventory turnover ratio for Phillips 66 has fluctuated over the past five years. In 2023, the company's inventory turnover was 34.16 times, indicating that inventory was sold and replaced 34.16 times during the year. This was a decrease from the previous year, where the ratio was 45.77 times. The significant drop in 2023 suggests that the company may have experienced challenges in efficiently managing its inventory levels or faced lower sales volumes relative to inventory holdings. However, the current inventory turnover ratio of 34.16 is still relatively high, which may show efficient inventory management compared to prior years like 2020 and 2019 when the company's ratio was 14.82 and 25.30, respectively. Overall, while the inventory turnover ratio has varied, it is essential for Phillips 66 to continue monitoring and optimizing its inventory levels to enhance operational efficiency and financial performance.
Peer comparison
Dec 31, 2023