Phillips 66 (PSX)

Current ratio

		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
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
Current ratio		1.26	1.29	1.33	1.54	1.38	1.30	1.28	1.13	1.15	1.15	1.08	1.26	1.39	1.22	1.25	1.11	1.24	1.29	1.28	1.31

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 fluctuated over the past eight quarters, ranging from 1.13 in Q1 2022 to 1.54 in Q1 2023. Generally, the current ratio has been above 1, indicating that the company has had sufficient current assets to cover its current liabilities.

A current ratio above 1 is typically considered healthy, as it suggests that the company can meet its short-term obligations. However, a decreasing trend in the current ratio over time may raise concerns about the company's liquidity position.

While a current ratio of 1.26 in Q4 2023 is still above the critical threshold of 1, it has decreased compared to the previous quarters. It would be essential to assess the reasons behind this decline and monitor future fluctuations in the current ratio to understand the company's liquidity position and ability to meet its short-term financial obligations.