Phillips 66 (PSX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,622,000 | 10,395,000 | 15,258,000 | 2,321,000 | -4,465,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 27,408,000 | 30,583,000 | 29,494,000 | 19,166,000 | 18,984,000 |
| Return on total capital | 13.22% | 33.99% | 51.73% | 12.11% | -23.52% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,622,000K ÷ ($—K + $27,408,000K)
= 13.22%
Phillips 66's return on total capital has shown fluctuations over the years based on the provided data. As of December 31, 2020, the return on total capital was -23.52%, indicating negative performance in utilizing its total capital. However, there was a notable improvement by December 31, 2021, with a return of 12.11%, signifying a turnaround and a move towards profitability.
Subsequently, there was a significant surge in return on total capital by December 31, 2022, reaching 51.73%, reflecting a substantial increase in the efficiency of capital deployment. This high return suggests that the company was able to generate impressive profits relative to the total capital invested.
In the following years, Phillips 66 maintained relatively strong performance in utilizing its total capital, with returns of 33.99% by December 31, 2023, and 13.22% by December 31, 2024. These positive returns indicate the company's ability to generate profits and create value for its capital providers.
Overall, the trend in Phillips 66's return on total capital shows both challenges and improvements over the years, with the company exhibiting varying levels of success in effectively deploying its capital to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024