Phillips 66 (PSX)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 143,124,000 | 147,709,000 | 151,824,000 | 148,814,000 | 147,399,000 | 149,408,000 | 154,720,000 | 168,207,000 | 169,990,000 | 162,315,000 | 147,603,000 | 126,028,000 | 111,476,000 | 95,281,000 | 80,967,000 | 64,878,000 | 64,129,000 | 76,845,000 | 88,134,000 | 105,068,000 |
| Total current assets | US$ in thousands | 17,910,000 | 19,307,000 | 20,916,000 | 20,704,000 | 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 |
| Total current liabilities | US$ in thousands | 15,087,000 | 15,922,000 | 18,271,000 | 17,667,000 | 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 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $143,124,000K ÷ ($17,910,000K – $15,087,000K)
= 50.70
Working capital turnover measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates efficient management of working capital.
Analyzing the working capital turnover of Phillips 66 from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The ratio was at a high of 89.34 on March 31, 2020, indicating the company was effectively utilizing its working capital to generate sales. However, the ratio saw a significant decline to 17.06 by December 31, 2020, suggesting a decrease in efficiency in managing working capital.
Subsequently, there were fluctuations in the ratio over the following quarters, with improvements seen in some periods and declines in others. Notably, the ratio showed improvement from 17.06 on December 31, 2020, to 57.40 on June 30, 2024, indicating better utilization of working capital to support sales growth.
Overall, a trend of fluctuation is observed in Phillips 66's working capital turnover ratio over the analyzed period. It is important for the company to focus on optimizing its working capital management to ensure efficient use of resources and support sustainable growth in sales revenue.
Peer comparison
Dec 31, 2024