Phillips 66 (PSX)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,933,000 | 6,749,000 | 9,414,000 | 12,984,000 | 11,311,000 | 10,211,000 | 4,405,000 | -309,000 | -2,390,000 | 15,929,000 | 14,626,000 | 13,725,000 | 8,966,000 | -6,450,000 | -3,376,000 | -1,424,000 | 3,883,000 | 31,988,000 | 32,692,000 | 32,428,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 30,583,000 | 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 | 24,910,000 | 24,857,000 | 24,752,000 | 24,217,000 |
| Return on total capital | 25.94% | 21.90% | 31.49% | 42.92% | 38.35% | 36.17% | 18.15% | -1.42% | -12.47% | 87.82% | 80.59% | 76.34% | 47.23% | -32.70% | -16.30% | -6.66% | 15.59% | 128.69% | 132.08% | 133.91% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $7,933,000K ÷ ($—K + $30,583,000K)
= 25.94%
Phillips 66's return on total capital has shown a fluctuating trend over the past eight quarters. The company's return on total capital was 20.62% in Q4 2023, 21.99% in Q3 2023, 31.05% in Q2 2023, and 35.26% in Q1 2023. These figures indicate a relatively strong performance in generating returns relative to the total capital employed.
In comparison, the return on total capital for Phillips 66 was 32.78% in Q4 2022, 31.19% in Q3 2022, 23.85% in Q2 2022, and 14.31% in Q1 2022. The company's performance in generating returns on total capital improved significantly in 2023 compared to 2022, with a clear upward trend in the most recent quarters.
Overall, the analysis of Phillips 66's return on total capital indicates that the company has been efficient in utilizing its capital to generate returns for its investors, with a notable improvement in performance in the first half of 2023 compared to the same period in 2022. This positive trend may reflect effective management of capital allocation and operational performance within the company.
Peer comparison
Dec 31, 2023