Phillips 66 (PSX)

Pretax margin

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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 9,245,000 9,928,000 14,170,000 16,054,000 14,272,000 13,382,000 6,735,000 3,002,000 1,463,000 -802,000 -2,587,000 -3,464,000 -5,225,000 -3,497,000 -1,212,000 1,056,000 3,877,000 5,727,000 6,764,000 6,785,000
Revenue (ttm) US$ in thousands 147,811,000 151,287,000 158,181,000 173,624,000 175,470,000 167,636,000 152,331,000 129,770,000 114,646,000 98,020,000 83,151,000 66,441,000 65,456,000 78,172,000 89,782,000 107,160,000 109,529,000 109,502,000 112,260,000 113,560,000
Pretax margin 6.25% 6.56% 8.96% 9.25% 8.13% 7.98% 4.42% 2.31% 1.28% -0.82% -3.11% -5.21% -7.98% -4.47% -1.35% 0.99% 3.54% 5.23% 6.03% 5.97%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $9,245,000K ÷ $147,811,000K
= 6.25%

The pretax margin for Phillips 66 has fluctuated over the past eight quarters, ranging from a low of 2.65% in Q1 2022 to a high of 9.79% in Q1 2023. The pretax margin measures the company's profitability before accounting for taxes, representing the percentage of each dollar of revenue that is kept as pretax profit.

The pretax margin has generally shown an increasing trend from Q1 2022 to Q2 2023, indicating improved operational efficiency and cost management. The significant increase from Q1 2022 to Q2 2023, from 2.65% to 9.44%, suggests that the company has made substantial improvements in its cost structure and revenue generation during this period.

However, there was a slight dip in pretax margin in Q4 2023 compared to the previous quarter, dropping from 6.87% to 6.42%. This may indicate a decrease in profitability efficiency factors such as higher expenses, lower revenue, or other operational challenges during the quarter.

Overall, the pretax margin analysis suggests that Phillips 66 has been able to maintain a decent level of profitability over the quarters, with some fluctuations that may require further analysis to identify the underlying factors driving these changes.


Peer comparison

Dec 31, 2023