Phillips 66 (PSX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 146,507,000 | 178,483,000 | 114,646,000 | 65,436,000 | 110,275,000 |
| Receivables | US$ in thousands | 11,730,000 | 10,985,000 | 7,870,000 | 8,022,000 | 8,510,000 |
| Receivables turnover | 12.49 | 16.25 | 14.57 | 8.16 | 12.96 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $146,507,000K ÷ $11,730,000K
= 12.49
The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. A higher receivables turnover indicates that the company is collecting its accounts receivable more quickly.
Phillips 66's receivables turnover has shown fluctuation over the past five years. In 2023, the ratio stands at 12.57, compared to 15.47 in 2022, 14.92 in 2021, 9.83 in 2020, and 12.62 in 2019.
The decreasing trend from 2019 to 2020 may indicate that Phillips 66 was taking longer to collect cash from its customers during that period. However, the significant improvement in 2021 and 2022 suggests that the company implemented more effective receivables management practices, resulting in quicker collections.
Although there was a slight decrease in 2023 compared to the previous year, the ratio remains at a relatively healthy level, indicating that Phillips 66 is still efficiently managing its accounts receivable in the most recent fiscal year. Further analysis of the company's receivables collection policies and industry benchmarks could provide additional insights into the efficiency of its credit management.
Peer comparison
Dec 31, 2023