Phillips 66 (PSX)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	2,117,000	7,004,000	11,024,000	1,315,000	-3,714,000
Total assets	US$ in thousands	72,582,000	75,501,000	76,442,000	55,594,000	54,721,000
ROA		2.92%	9.28%	14.42%	2.37%	-6.79%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $2,117,000K ÷ $72,582,000K
= 2.92%

The Return on Assets (ROA) of Phillips 66 has shown a mixed performance over the past five years. Starting at a negative ROA of -6.79% in December 31, 2020, the company significantly improved its profitability metrics to reach 2.37% by December 31, 2021. The ROA further increased substantially to 14.42% by December 31, 2022, indicating a significant improvement in the company's ability to generate profits from its assets.

However, in the subsequent years, the ROA witnessed a slight decline, standing at 9.28% by December 31, 2023, and further decreasing to 2.92% by December 31, 2024. Despite the decrease in the later years, Phillips 66 maintained an overall positive ROA, which suggests that the company was able to generate profit from its assets, albeit at a lower rate in the later years compared to the peak in 2022.

Overall, the fluctuations in Phillips 66's ROA indicate changing profitability levels and efficiency in asset utilization over the period under consideration. Further analysis of the company's financial performance and strategic decisions would be beneficial to understand the factors driving these shifts in ROA.