Phillips 66 (PSX)
Total asset 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 147,811,000 | 151,287,000 | 158,181,000 | 173,624,000 | 175,470,000 | 167,636,000 | 152,331,000 | 129,770,000 | 114,646,000 | 98,020,000 | 83,151,000 | 66,441,000 | 65,456,000 | 78,172,000 | 89,782,000 | 107,160,000 | 109,529,000 | 109,502,000 | 112,260,000 | 113,560,000 |
| Total assets | US$ in thousands | 75,501,000 | 77,786,000 | 74,886,000 | 77,262,000 | 76,442,000 | 77,339,000 | 62,812,000 | 60,638,000 | 55,594,000 | 56,407,000 | 56,977,000 | 55,496,000 | 54,721,000 | 54,281,000 | 54,518,000 | 53,460,000 | 58,720,000 | 58,741,000 | 57,781,000 | 57,855,000 |
| Total asset turnover | 1.96 | 1.94 | 2.11 | 2.25 | 2.30 | 2.17 | 2.43 | 2.14 | 2.06 | 1.74 | 1.46 | 1.20 | 1.20 | 1.44 | 1.65 | 2.00 | 1.87 | 1.86 | 1.94 | 1.96 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $147,811,000K ÷ $75,501,000K
= 1.96
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue relative to its total 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, we observe fluctuations in Phillips 66's total asset turnover over the past eight quarters. In Q1 2023, the total asset turnover was 2.18, indicating that for every dollar of total assets, the company generated $2.18 of revenue. This was a decrease from the previous quarter where the total asset turnover was 2.07.
In Q2 and Q3 2023, the total asset turnover continued to fluctuate at 2.07 and 1.92, respectively, before increasing to 1.95 in Q4 2023. Despite the fluctuations, the total asset turnover remained above 1.5 in all quarters, suggesting that Phillips 66 has been efficiently utilizing its assets to generate revenue.
Comparing the latest total asset turnover to the historical trend, we note that it has been relatively stable around 2. However, the decrease from the peak of 2.35 in Q2 2022 to the current level of 1.95 in Q4 2023 warrants further investigation to understand the underlying factors impacting the company's asset utilization efficiency.
Overall, the analysis of Phillips 66's total asset turnover highlights the company's ability to efficiently generate revenue in relation to its total assets, but also signals potential variations in asset utilization efficiency that may require closer attention and monitoring moving forward.
Peer comparison
Dec 31, 2023