Phillips 66 (PSX)
Total asset 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 |
| Total assets | US$ in thousands | 75,501,000 | 76,442,000 | 55,594,000 | 54,721,000 | 58,720,000 |
| Total asset turnover | 1.94 | 2.33 | 2.06 | 1.20 | 1.88 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $146,507,000K ÷ $75,501,000K
= 1.94
Total asset turnover is a financial ratio that measures a company's ability to generate sales from its assets. A higher total asset turnover indicates that the company is more efficient in utilizing its assets to generate revenue.
Based on the data provided for Phillips 66, we see fluctuations in the total asset turnover ratio over the past five years. In 2023, the total asset turnover ratio decreased to 1.95 from 2.22 in 2022, indicating a decrease in the company's efficiency in generating sales from its assets.
In 2021, the total asset turnover ratio was 2.01, showing a slight decline from the previous year. This ratio of 2.01 suggests that for every dollar of assets, Phillips 66 generated $2.01 in sales revenue during that year.
On the other hand, the total asset turnover ratio was notably lower in 2020 at 1.17 and higher in 2019 at 1.83. The decrease in 2020 and subsequent increase in 2019 suggest fluctuations in the company's asset utilization efficiency during those years.
Overall, the trend in Phillips 66's total asset turnover ratio indicates fluctuating efficiency in generating sales from its assets over the past five years, with some variability in performance. Further analysis of the company's business operations and industry dynamics may provide insights into the factors influencing these fluctuations.
Peer comparison
Dec 31, 2023