Phillips 66 (PSX)

Financial leverage ratio

		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
Total assets	US$ in thousands	75,501,000	77,786,000	74,886,000	77,262,000	76,442,000	77,339,000	62,812,000	60,638,000	55,594,000	56,407,000	56,977,000	55,496,000	54,721,000	54,281,000	54,518,000	53,460,000	58,720,000	58,741,000	57,781,000	57,855,000
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
Financial leverage ratio		2.47	2.52	2.50	2.55	2.59	2.74	2.59	2.78	2.90	3.11	3.14	3.09	2.88	2.75	2.63	2.50	2.36	2.36	2.33	2.39

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $75,501,000K ÷ $30,583,000K
= 2.47

The financial leverage ratio of Phillips 66 has shown a decreasing trend over the four quarters from Q1 2023 to Q4 2023. The ratio decreased from 2.55 in Q1 2023 to 2.47 in Q4 2023. This indicates that the company's reliance on debt to finance its operations has reduced over this period.

Comparing year-over-year, the financial leverage ratio has decreased from 2.59 in Q4 2022 to 2.47 in Q4 2023. This suggests that Phillips 66 has been gradually reducing its debt levels relative to its equity, which could be a positive sign for the company's financial health and stability.

Overall, the decreasing trend in the financial leverage ratio indicates that Phillips 66 has been managing its debt effectively and moving towards a more balanced capital structure. However, it's important to continue monitoring this ratio to ensure sustainable financial performance in the future.