Phillips 66 (PSX)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		—	14.33	14.02	12.55	12.36
Number of days of payables	days	—	25.48	26.03	29.07	29.52

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ —
= —

The number of days of payables for Phillips 66 has fluctuated over the past five years. As of December 31, 2023, the company had an average payment period of approximately 31.06 days, indicating that, on average, it takes around 31 days for the company to pay its suppliers.

Compared to the previous year, there has been a slight increase in the number of days of payables, as it was 27.57 days on December 31, 2022. This suggests that Phillips 66 may be taking slightly longer to pay its suppliers in 2023.

When looking at the trend over the past five years, we see variability in the number of days of payables. The lowest number of days of payables was recorded on December 31, 2022, at 27.57 days, while the highest was on December 31, 2020, at 35.10 days. This variability could indicate changes in the company's payment policies or its relationships with suppliers over the years.

Overall, monitoring the number of days of payables can provide insights into Phillips 66's efficiency in managing its payment obligations and its working capital management strategies.