Phillips 66 (PSX)
Payables 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 |
| Payables | US$ in thousands | — | 10,748,000 | 7,629,000 | 5,171,000 | 8,043,000 |
| Payables turnover | — | 14.33 | 14.02 | 12.55 | 12.36 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $130,904,000K ÷ $—K
= —
Phillips 66's payables turnover ratio has fluctuated over the past five years, with values ranging from 10.40 in 2020 to 13.24 in 2022. The payables turnover ratio measures how efficiently a company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more quickly.
The downward trend in the payables turnover ratio from 13.24 in 2022 to 11.75 in 2023 suggests a decrease in the speed at which Phillips 66 is paying its payables. This could be due to a variety of factors, such as changes in payment terms with suppliers, increased reliance on credit, or a slowdown in accounts payable management.
Overall, although the payables turnover ratio for Phillips 66 has fluctuated in recent years, it is essential for the company to monitor this ratio closely to ensure efficient management of its payables and maintain good relationships with its suppliers.
Peer comparison
Dec 31, 2023