Phillips 66 (PSX)
Working capital 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 current assets | US$ in thousands | 19,941,000 | 22,496,000 | 19,898,000 | 22,670,000 | 21,922,000 | 23,270,000 | 22,492,000 | 19,854,000 | 14,697,000 | 16,019,000 | 15,780,000 | 14,418,000 | 13,276,000 | 12,822,000 | 12,499,000 | 11,705,000 | 14,395,000 | 15,617,000 | 14,295,000 | 14,815,000 |
| Total current liabilities | US$ in thousands | 15,856,000 | 17,416,000 | 14,971,000 | 14,705,000 | 15,889,000 | 17,882,000 | 17,608,000 | 17,603,000 | 12,801,000 | 13,921,000 | 14,551,000 | 11,431,000 | 9,518,000 | 10,513,000 | 10,023,000 | 10,529,000 | 11,646,000 | 12,083,000 | 11,171,000 | 11,328,000 |
| Working capital turnover | 36.18 | 29.78 | 32.10 | 21.80 | 29.09 | 31.11 | 31.19 | 57.65 | 60.47 | 46.72 | 67.66 | 22.24 | 17.42 | 33.86 | 36.26 | 91.12 | 39.84 | 30.99 | 35.93 | 32.57 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $147,811,000K ÷ ($19,941,000K – $15,856,000K)
= 36.18
The working capital turnover of Phillips 66 has shown fluctuations over the past eight quarters. In Q4 2023, the working capital turnover was 36.08, indicating that the company generated $36.08 in revenue for every dollar of working capital invested during that quarter. This represents an improvement compared to the previous quarters Q3 and Q2 2023, where the turnover ratios were 29.41 and 31.40 respectively.
However, the working capital turnover in Q1 2023 was lower at 21.12, suggesting that the company generated less revenue relative to its working capital investment during that period. This could be a cause for concern as it indicates inefficiencies in utilizing the company's working capital.
Looking back further, in Q4 2022, Phillips 66 had a working capital turnover of 28.18, which was slightly lower than Q4 2023. Notably, Q1 2022 had the highest working capital turnover of 55.99 among the quarters listed, indicating that the company efficiently utilized its working capital to generate revenue during that period.
Overall, the working capital turnover of Phillips 66 has varied throughout the analyzed quarters, with some periods showing more efficient use of working capital than others. Monitoring these fluctuations can provide valuable insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023