Phillips 66 (PSX)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $30,583,000K)
= 0.00
The debt-to-capital ratio of Phillips 66 has fluctuated over the past five years, falling from 0.32 in 2019 to 0.39 in 2023. This ratio indicates the proportion of the company's capital structure that is financed by debt. A higher ratio suggests a higher reliance on debt, while a lower ratio indicates a stronger equity position.
In 2019, the company had a relatively lower debt-to-capital ratio of 0.32, suggesting a more conservative debt usage. However, this ratio increased in the following years, reaching 0.43 in 2021 and peaking at 0.46 in 2020. This uptrend indicates a potential increase in debt financing or a decrease in equity over these years.
The decrease in the debt-to-capital ratio from 0.46 in 2020 to 0.39 in 2023 suggests a reduction in debt relative to total capital. This may signal an improvement in the company's balance sheet strength or a shift towards a more equity-funded capital structure.
Overall, the trend in Phillips 66's debt-to-capital ratio indicates fluctuations in the company's financing decisions and capital structure management over the past five years. Further analysis of the company's financial performance and leverage ratios would provide additional insights into its capital structure dynamics.
Peer comparison
Dec 31, 2023