Phillips 66 (PSX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 11.44% | 11.56% | 12.71% | 13.59% | 12.25% | 11.82% | 9.58% | 7.35% | 6.69% | 22.88% | 24.99% | 29.65% | 26.92% | 38.81% | 36.28% | 32.35% | 33.83% | 33.81% | 33.87% | 33.55% |
| Operating profit margin | 5.37% | 4.46% | 5.95% | 7.48% | 6.45% | 6.09% | 2.89% | -0.24% | -2.08% | 16.25% | 17.59% | 20.66% | 13.70% | 27.74% | 26.33% | 23.58% | 27.67% | 27.65% | 28.59% | 28.32% |
| 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% |
| Net profit margin | 4.75% | 5.05% | 6.91% | 7.14% | 6.28% | 6.21% | 3.56% | 1.97% | 1.15% | -0.50% | -2.04% | -3.21% | -6.07% | -3.45% | -1.32% | 0.35% | 2.81% | 4.18% | 4.77% | 4.65% |
Phillips 66 has shown a steady improvement in its profitability ratios over the last eight quarters. The gross profit margin has been consistently above 10%, indicating the company effectively manages its cost of goods sold. The operating profit margin has also shown a positive trend, increasing from 4.98% in Q3 2022 to 5.37% in Q4 2023, reflecting efficient operational management.
Furthermore, the pretax margin has been on an upward trajectory, reaching 9.44% in Q2 2023 before slightly decreasing in subsequent quarters. This suggests that the company's operating income before taxes has been increasing, indicating improved efficiency in generating profits from its operations.
The net profit margin, which represents the company's bottom line profitability after all expenses have been deducted, has also shown positive growth. It has consistently increased from 2.02% in Q1 2022 to 4.75% in Q4 2023. This indicates that Phillips 66 has been successful in controlling its costs and increasing its net income relative to its revenue.
Overall, the improving trend in Phillips 66's profitability ratios signals the company's effective cost management and operational efficiency, which bodes well for its financial performance in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.51% | 8.68% | 12.57% | 16.81% | 14.80% | 13.20% | 7.01% | -0.51% | -4.30% | 28.24% | 25.67% | 24.73% | 16.38% | 39.94% | 43.37% | 47.26% | 51.61% | 51.55% | 55.55% | 55.59% |
| Return on assets (ROA) | 9.29% | 9.82% | 14.60% | 16.05% | 14.42% | 13.46% | 8.64% | 4.21% | 2.37% | -0.88% | -2.98% | -3.84% | -7.26% | -4.97% | -2.18% | 0.70% | 5.24% | 7.80% | 9.28% | 9.12% |
| Return on total capital | 25.94% | 21.90% | 31.49% | 42.92% | 38.35% | 36.17% | 18.15% | -1.42% | -12.47% | 87.82% | 80.59% | 76.34% | 47.23% | -32.70% | -16.30% | -6.66% | 15.59% | 128.69% | 132.08% | 133.91% |
| Return on equity (ROE) | 22.94% | 24.79% | 36.57% | 41.00% | 37.38% | 36.88% | 22.34% | 11.70% | 6.87% | -2.73% | -9.34% | -11.86% | -20.94% | -13.69% | -5.74% | 1.76% | 12.35% | 18.43% | 21.65% | 21.78% |
Phillips 66's profitability ratios have exhibited fluctuations over the quarters. The operating return on assets (Operating ROA) has ranged from 8.35% to 14.71% in the past eight quarters, showing variability in operational efficiency in utilizing its assets to generate operating income.
Similarly, the Return on Assets (ROA) has fluctuated between 4.19% and 16.04%, reflecting the company's ability to generate profits relative to its total assets. The Return on Total Capital has shown a wider range, from 14.31% to 35.26%, indicating the efficiency in generating returns from all sources of capital employed in the business.
Furthermore, the Return on Equity (ROE) has varied between 11.65% and 40.97%, highlighting the return generated for the shareholders' equity invested in the company. Overall, the profitability ratios suggest that Phillips 66 has generally maintained a strong performance in generating profits, with some quarterly fluctuations.