Phillips 66 (PSX)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,603,000 | 5,362,000 | 7,746,000 | 8,714,000 | 10,366,000 | 10,519,000 | 14,801,000 | 16,530,000 | 14,650,000 | 14,286,000 | 7,563,000 | 3,903,000 | 2,321,000 | 6,000 | -1,799,000 | -2,701,000 | -4,443,000 | -2,709,000 | -439,000 | 1,833,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 27,408,000 | 28,722,000 | 29,455,000 | 29,726,000 | 31,650,000 | 30,821,000 | 29,898,000 | 30,249,000 | 29,494,000 | 28,233,000 | 24,276,000 | 21,815,000 | 19,166,000 | 18,139,000 | 18,149,000 | 17,979,000 | 18,984,000 | 19,722,000 | 20,715,000 | 21,372,000 |
| Return on total capital | 13.15% | 18.67% | 26.30% | 29.31% | 32.75% | 34.13% | 49.50% | 54.65% | 49.67% | 50.60% | 31.15% | 17.89% | 12.11% | 0.03% | -9.91% | -15.02% | -23.40% | -13.74% | -2.12% | 8.58% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,603,000K ÷ ($—K + $27,408,000K)
= 13.15%
Phillips 66's return on total capital has shown fluctuations over the analyzed period, ranging from negative figures to positive double-digit percentages. Specifically, the return on total capital was negative in the earlier quarters of 2020, reaching as low as -23.40% by the end of December 2020.
However, a significant turnaround began in the first quarter of 2022, with the return on total capital increasing steadily. By the end of June 2023, the return on total capital reached a peak of 54.65%. Despite some fluctuations thereafter, the company maintained relatively strong returns above 25% up to September 2024.
Overall, Phillips 66 demonstrated a marked improvement in its return on total capital from negative territory to positive double-digit percentages, indicating enhanced efficiency in utilizing its total capital to generate profits and create value for its stakeholders.
Peer comparison
Dec 31, 2024