Phillips 66 (PSX)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 130,904,000 | 133,800,000 | 138,083,000 | 150,033,000 | 153,972,000 | 147,824,000 | 137,739,000 | 120,230,000 | 106,973,000 | 92,679,000 | 79,461,000 | 63,826,000 | 64,920,000 | 74,788,000 | 84,166,000 | 99,447,000 | 99,435,000 | 97,902,000 | 99,662,000 | 100,887,000 |
| Payables | US$ in thousands | — | — | — | 9,923,000 | 10,748,000 | 11,449,000 | 12,513,000 | 12,047,000 | 7,629,000 | 8,203,000 | 8,066,000 | 7,484,000 | 5,171,000 | 4,905,000 | 4,902,000 | 4,882,000 | 8,043,000 | 7,738,000 | 7,300,000 | 8,310,000 |
| 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 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $130,904,000K ÷ $—K
= —
The payables turnover ratio of Phillips 66 has been fluctuating over the past eight quarters. The ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers.
In Q1 of 2022, the payables turnover ratio was at its lowest at 8.76, showing that the company took longer to pay off its suppliers during this period. However, there was a steady increase in the ratio in subsequent quarters, reaching a peak of 13.79 in Q1 of 2023. This indicates that the company improved its accounts payable management and was able to pay off its suppliers more frequently in a shorter period.
The payables turnover ratio then decreased slightly in Q2 of 2023 to 12.81 but remained relatively stable in Q3 and Q4 of 2023 at 10.18 and 11.75, respectively. Overall, the trend suggests that Phillips 66 has been effectively managing its accounts payable by maintaining a balance between prompt payments to suppliers and efficient cash flow management.
It is important for investors and stakeholders to monitor the payables turnover ratio of a company as it provides insights into the company's liquidity, operational efficiency, and relationships with suppliers. fluctuations can indicate changes in the company's payment policies, financial health, and overall performance in the industry.
Peer comparison
Dec 31, 2023