Phillips 66 (PSX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,015,000 | 11,024,000 | 1,317,000 | -3,975,000 | 3,076,000 |
| Total stockholders’ equity | US$ in thousands | 30,583,000 | 29,494,000 | 19,166,000 | 18,984,000 | 24,910,000 |
| ROE | 22.94% | 37.38% | 6.87% | -20.94% | 12.35% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,015,000K ÷ $30,583,000K
= 22.94%
The return on equity (ROE) of Phillips 66 has fluctuated over the past five years. In 2023, the ROE stands at 22.90%, showing a decrease from the previous year when it was at 37.34%. Despite this decline, the current ROE remains relatively high compared to 2021 when it was 6.81%.
The ROE in 2020 was negative at -20.98%, indicating that the company's net income was insufficient to cover shareholders' equity, resulting in a loss. However, Phillips 66 managed to improve its ROE significantly in the subsequent years, reaching 12.32% in 2019.
Overall, the recent ROE performance of Phillips 66 suggests that the company has been able to generate a reasonable return for its shareholders, although there have been fluctuations in profitability over the past five years. Further analysis of the company's financial position and operational performance would provide a more comprehensive understanding of the factors driving these changes in ROE.
Peer comparison
Dec 31, 2023