Phillips 66 (PSX)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	19,941,000	21,922,000	14,697,000	13,276,000	14,395,000
Total current liabilities	US$ in thousands	15,856,000	15,889,000	12,801,000	9,518,000	11,646,000
Current ratio		1.26	1.38	1.15	1.39	1.24

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $19,941,000K ÷ $15,856,000K
= 1.26

The current ratio of Phillips 66 has exhibited fluctuations over the past five years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger ability to meet short-term obligations.

In 2023, Phillips 66's current ratio stands at 1.26, showing a decrease from the previous year. This could indicate a slight weakening in the company's ability to cover its short-term obligations with its current assets. However, the current ratio is still above 1, indicating that the company has sufficient current assets to cover its current liabilities.

Compared to 2021 when the current ratio was 1.15, the current ratio improved in 2022 and then decreased in 2023. The fluctuations in the current ratio over the years suggest changes in the company's current asset and current liability levels.

Overall, while the current ratio of Phillips 66 has shown some variability, it remains above 1 in recent years, indicating that the company has generally maintained a healthy liquidity position to meet its short-term obligations.