Phillips 66 (PSX)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,100,000 | 3,668,000 | 6,552,000 | 8,106,000 | 9,776,000 | 10,393,000 | 14,789,000 | 16,584,000 | 14,702,000 | 14,233,000 | 7,586,000 | 3,011,000 | 1,324,000 | -1,148,000 | -2,264,000 | -2,544,000 | -1,544,000 | -41,000 | 1,746,000 | 3,622,000 |
| Total assets | US$ in thousands | 72,582,000 | 75,080,000 | 75,945,000 | 76,399,000 | 75,501,000 | 77,786,000 | 74,886,000 | 77,262,000 | 76,442,000 | 77,339,000 | 62,812,000 | 60,638,000 | 55,594,000 | 56,407,000 | 56,977,000 | 55,496,000 | 54,721,000 | 54,281,000 | 54,518,000 | 53,460,000 |
| Operating ROA | 2.89% | 4.89% | 8.63% | 10.61% | 12.95% | 13.36% | 19.75% | 21.46% | 19.23% | 18.40% | 12.08% | 4.97% | 2.38% | -2.04% | -3.97% | -4.58% | -2.82% | -0.08% | 3.20% | 6.78% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,100,000K ÷ $72,582,000K
= 2.89%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's operating profitability relative to its total assets. For Phillips 66, the operating ROA has shown fluctuations over the past few years.
In the first quarter of 2020, the operating ROA stood at 6.78%, indicating a positive return on the company's assets. However, this figure declined significantly in the subsequent quarters and even turned negative by the end of 2020, reflecting a period of operational challenges or inefficiencies.
The trend continued into early 2021 with further negative operating ROA numbers, suggesting continued struggles in generating operating income relative to the company's asset base. In the latter part of 2021 and through the first half of 2022, there was a noticeable improvement in the operating ROA, showing a positive turnaround in operating profitability.
By the end of 2022, the operating ROA had increased to 19.23%, indicating a strong performance in utilizing assets to generate operating income. This positive trend carried on into early 2023, with the operating ROA peaking at 21.46%, reflecting a period of robust operating profitability relative to asset utilization.
However, in the latter part of 2023 and through the end of 2024, the operating ROA figures began to decline again. By the end of 2024, the operating ROA had dropped to 2.89%, indicating a decrease in the company's ability to generate operating profit from its assets compared to the previous periods.
Overall, the analysis of Phillips 66's operating ROA trend highlights periods of both strength and struggle in efficiently utilizing assets to drive operating profitability. It is essential for the company to sustain and improve its operating ROA to ensure long-term financial health and efficiency in operations.
Peer comparison
Dec 31, 2024