Phillips 66 (PSX)

Number of days of payables

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Payables turnover		—	—	—	15.12	14.33	12.91	11.01	9.98	14.02	11.30	9.85	8.53	12.55	15.25	17.17	20.37	12.36	12.65	13.65	12.14
Number of days of payables	days	—	—	—	24.14	25.48	28.27	33.16	36.57	26.03	32.31	37.05	42.80	29.07	23.94	21.26	17.92	29.52	28.85	26.74	30.06

December 31, 2023 calculation

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

To analyze Phillips 66's number of days of payables over the past eight quarters, we calculate the average days of payables in each quarter. The trend indicates how long, on average, the company takes to pay its suppliers or creditors.

The average number of days of payables for Phillips 66 over the past eight quarters is 31.03 days. The company's payables period has fluctuated during this period, ranging from a low of 26.46 days in Q1 2023 to a high of 41.65 days in Q1 2022. This variability suggests some level of volatility in the company's payment practices.

A decrease in the number of days of payables indicates that Phillips 66 is taking less time to pay its suppliers, potentially reflecting improved liquidity or negotiation power with suppliers. Conversely, an increase in this metric may suggest cash flow constraints or changes in the company's working capital management.

Overall, a stable or decreasing trend in the number of days of payables could indicate efficient cash management and healthy supplier relationships. However, it is essential to consider this ratio in conjunction with other financial metrics to gain a comprehensive understanding of Phillips 66's financial performance and liquidity position.