Phillips 66 (PSX)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	27,408,000	30,583,000	29,494,000	19,166,000	18,984,000
ROE		7.72%	22.90%	37.38%	6.86%	-19.56%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,117,000K ÷ $27,408,000K
= 7.72%

The return on equity (ROE) for Phillips 66 has shown fluctuating trends over the past five years. In December 31, 2020, the ROE was negative at -19.56%, indicating that the company experienced a loss relative to its equity. However, there was a significant improvement in December 31, 2021, with an ROE of 6.86%, suggesting the company became profitable and generated a return for shareholders.

The upward trend continued in December 31, 2022, where the ROE increased substantially to 37.38%, reflecting strong profitability and efficient use of equity by the company. In December 31, 2023, the ROE remained relatively high at 22.90%, indicating continued positive performance and value creation for shareholders.

Lastly, in December 31, 2024, the ROE decreased slightly to 7.72%, which could be due to various factors such as changes in the company's financial structure or industry conditions. Overall, the recent ROE figures reflect a mix of profitability levels for Phillips 66, with notable improvements in generating returns for shareholders in the past few years.