Phillips 66 (PSX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 10,127,000 | 14,925,000 | 2,066,000 | -4,590,000 | 3,883,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 30,583,000 | 29,494,000 | 19,166,000 | 18,984,000 | 24,910,000 |
| Return on total capital | 33.11% | 50.60% | 10.78% | -24.18% | 15.59% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $10,127,000K ÷ ($—K + $30,583,000K)
= 33.11%
Phillips 66's return on total capital has displayed fluctuations over the past five years. In 2023, the return on total capital was 20.62%, representing a decrease from the previous year's figure of 32.78%. Despite the decline, the company's return on total capital remains robust compared to the levels seen in 2020 and 2019. The positive trend from 2019 to 2022 indicates an improvement in capital utilization efficiency, potentially driven by effective investments and operations management. However, the decrease in 2023 suggests a possible change in the company's capital allocation strategies or operational performance. Further analysis of the underlying factors influencing Phillips 66's return on total capital is recommended to better understand the dynamics at play.
Peer comparison
Dec 31, 2023