Phillips 66 (PSX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 33.49 | 22.88 | 21.50 | 21.43 | 35.10 | 22.92 | 21.26 | 27.10 | 46.26 | 33.94 | 29.38 | 25.85 | 30.56 | 20.32 | 16.07 | 14.22 | 15.18 | 14.30 | 15.45 | 17.68 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 50.70 | 43.64 | 57.40 | 49.00 | 36.08 | 29.41 | 31.40 | 21.12 | 28.18 | 30.13 | 30.22 | 55.99 | 58.80 | 45.42 | 65.88 | 21.72 | 17.06 | 33.28 | 35.60 | 89.34 |
The activity ratios of Phillips 66 provide insights into the efficiency of the company's operations.
1. Inventory Turnover: This ratio indicates how many times inventory is sold and replaced over a specific period. Phillips 66's inventory turnover has shown fluctuations over the years, ranging from a low of 14.22 times in March 2021 to a high of 46.26 times in December 2022. The general trend shows an increase in inventory turnover, which can be positive as it implies faster movement of inventory.
2. Receivables Turnover: Unfortunately, data for receivables turnover is not available in the provided dataset. This ratio typically measures how efficiently a company is collecting its accounts receivable.
3. Payables Turnover: Similar to receivables turnover, payables turnover data is not available in the dataset. This ratio showcases how quickly a company pays its suppliers.
4. Working Capital Turnover: This ratio signifies how efficiently working capital is being utilized to generate sales. Phillips 66's working capital turnover has varied significantly, with a peak of 89.34 in March 2020 and a low of 17.06 in December 2020. Overall, the company's working capital turnover has shown fluctuations, indicating changes in the effectiveness of working capital management over time.
In conclusion, while the inventory turnover and working capital turnover ratios provide valuable insights into Phillips 66's operational efficiency, the absence of data for receivables turnover and payables turnover limits the comprehensive analysis of the company's activity ratios.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.90 | 15.95 | 16.98 | 17.03 | 10.40 | 15.93 | 17.17 | 13.47 | 7.89 | 10.76 | 12.43 | 14.12 | 11.95 | 17.96 | 22.71 | 25.68 | 24.04 | 25.52 | 23.63 | 20.64 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) ratio for Phillips 66 has shown fluctuations over the past few years, ranging from a high of 25.68 days on March 31, 2021, to a low of 7.89 days on December 31, 2022. The ratio indicates the number of days it takes for the company to sell its inventory, with lower values generally being more favorable. Overall, the DOH ratio has been trending downwards from 2021 to 2024, which could suggest more efficient inventory management by Phillips 66.
The Days of Sales Outstanding (DSO) ratio data is absent for the periods provided, indicating that there is no information available to calculate this specific activity ratio. DSO measures how long it takes for a company to collect its accounts receivables and is used to assess the efficiency of the company's credit and collection policies.
The Number of Days of Payables ratio data is also not available for the periods specified. This ratio would typically show how long Phillips 66 takes to pay its suppliers, providing insights into the company's payment practices and liquidity management.
In conclusion, based on the available data, the analysis of activity ratios for Phillips 66 is limited to the Days of Inventory on Hand ratio, which has shown variations reflecting changes in the company's inventory management efficiency over the years.
See also:
Phillips 66 Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 4.20 | 4.39 | 4.79 | 4.83 | 4.64 | 6.64 | 5.64 | 4.75 | 4.26 | 3.42 | 2.74 | 2.57 | 3.27 | 3.63 | 4.37 |
| Total asset turnover | 1.97 | 1.97 | 2.00 | 1.95 | 1.95 | 1.92 | 2.07 | 2.18 | 2.22 | 2.10 | 2.35 | 2.08 | 2.01 | 1.69 | 1.42 | 1.17 | 1.17 | 1.42 | 1.62 | 1.97 |
Long-term activity ratios are important indicators of how efficiently a company is utilizing its assets to generate revenue. Two key ratios that are commonly used to assess long-term activity are the Fixed Asset Turnover and Total Asset Turnover ratios.
1. Fixed Asset Turnover Ratio:
The Fixed Asset Turnover ratio measures how effectively a company is using its fixed assets to generate sales. A higher ratio indicates that the company is efficiently utilizing its fixed assets to generate revenue. In the case of Phillips 66, the Fixed Asset Turnover ratio has shown fluctuations over the years, starting at 4.37 in March 2020 and reaching a peak of 6.64 in June 2022. This indicates an improvement in the company's efficiency in generating revenue from its fixed assets. However, there was a slight decline to 4.20 in September 2023, which could suggest a temporary dip in efficiency. The ratio then remained stable around 4.20-4.83 until December 2023.
2. Total Asset Turnover Ratio:
The Total Asset Turnover ratio measures the efficiency of a company in generating sales from all of its assets, both fixed and current. A higher ratio indicates that the company is effective in utilizing all its assets to generate revenue. For Phillips 66, the Total Asset Turnover ratio started at 1.97 in March 2020, fluctuated over the years, and was at 1.97 in December 2024. The ratio shows a similar trend to the Fixed Asset Turnover ratio, with fluctuations but generally indicating efficient utilization of assets to generate revenue.
Overall, the analysis of long-term activity ratios for Phillips 66 suggests that the company has shown variations in efficiency in utilizing its assets to generate revenue over time. The fluctuations in both Fixed Asset Turnover and Total Asset Turnover ratios highlight the importance of continuously monitoring and assessing the company's asset management strategies to ensure optimal performance and sustainable growth.
See also:
Phillips 66 Long-term (Investment) Activity Ratios (Quarterly Data)