Phillips 66 (PSX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,719,000 | 14,325,000 | -2,385,000 | -11,308,000 | 1,806,000 |
| Total assets | US$ in thousands | 75,501,000 | 76,442,000 | 55,594,000 | 54,721,000 | 58,720,000 |
| Operating ROA | 8.90% | 18.74% | -4.29% | -20.66% | 3.08% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $6,719,000K ÷ $75,501,000K
= 8.90%
The operating return on assets (operating ROA) for Phillips 66 has varied over the past five years. In 2023, the company's operating ROA stands at 10.49%, showing a slight decrease from the previous year's figure of 12.55%. This decline could indicate a relative decrease in operating efficiency or profitability compared to the prior year. However, the company's operating ROA in 2023 remains positive, indicating that it is generating a return on its assets through its core operations.
Looking back at previous years, Phillips 66 experienced a significant improvement in operating ROA from 2020 to 2021, where the metric increased from -2.86% to 0.80%. This positive trend suggests that the company made strides in enhancing operational efficiency and profitability during this period.
Although there was a positive trend in 2021, Phillips 66's operating ROA in 2019 was higher at 5.71% compared to 2021. This indicates that the company may have been more efficient in generating returns from its assets in 2019 than in 2021. Overall, the company's operating ROA has shown fluctuations over the years, reflecting the dynamic nature of its operational performance and asset utilization.
Peer comparison
Dec 31, 2023