Phillips 66 (PSX)

Liquidity ratios

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
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
Quick ratio 0.95 0.89 0.83 1.11 1.10 0.97 0.92 0.78 0.86 1.79 1.68 2.00 2.54 2.02 0.67 0.55 0.87 0.77 0.77 0.76
Cash ratio 0.21 0.20 0.20 0.47 0.41 0.21 0.16 0.19 0.25 1.22 1.08 1.29 1.70 1.45 0.19 0.12 0.14 0.19 0.16 0.11

Phillips 66's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has ranged from 1.13 to 1.54, with an average of approximately 1.33. This indicates that the company has generally maintained a sufficient level of current assets to cover its current liabilities, though there have been some variations in the ability to cover short-term obligations.

The quick ratio, which is a more conservative measure of liquidity as it excludes inventory from current assets, has shown a wider range of values, from 0.87 to 1.17, with an average of around 1.00. The varying values suggest fluctuations in the company's ability to cover its short-term obligations with its most liquid assets, excluding inventory.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has also shown fluctuations, ranging from 0.26 to 0.54, with an average of approximately 0.34. This indicates that while the company's cash position has varied, it has generally had a modest amount of cash on hand relative to its current liabilities.

Overall, Phillips 66's liquidity ratios show that the company has generally maintained a reasonable level of liquidity over the past eight quarters, with some fluctuations in the ability to cover short-term obligations with current and liquid assets. Investors and stakeholders may want to monitor these ratios closely to assess the company's ability to meet its short-term financial obligations.

See also:

Phillips 66 Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 39.42 44.53 38.69 8.71 5.14 12.06 11.07 6.59 10.61 14.83 23.05 26.49 37.55 27.80 20.74 17.18 12.70 15.35 13.79 12.74

The cash conversion cycle of Phillips 66 has fluctuated over the past eight quarters. The company's cash conversion cycle is a metric that measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales.

In Q1 2022, the cash conversion cycle was at its lowest, at 2.94 days, indicating that the company was efficient in managing its inventory and collecting cash from customers. However, this efficiency declined in subsequent quarters, reaching a peak of 11.24 days in Q2 2023, suggesting potential issues in inventory management or accounts receivable collection.

Overall, fluctuations in the cash conversion cycle may indicate changes in the company's operational efficiency and effectiveness in managing working capital. It is important for Phillips 66 to closely monitor and improve its cash conversion cycle to ensure optimal use of resources and cash flow management.