Phillips 66 (PSX)

Financial leverage ratio

		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
Total assets	US$ in thousands	72,582,000	75,080,000	75,945,000	76,399,000	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
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
Financial leverage ratio		2.65	2.61	2.58	2.57	2.39	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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $72,582,000K ÷ $27,408,000K
= 2.65

The financial leverage ratio of Phillips 66 has shown some fluctuations over the period from March 31, 2020 to December 31, 2024. The ratio started at 2.50 in March 2020, indicating that the company had $2.50 of debt for every $1 of equity. The ratio increased steadily to reach a peak of 3.14 in June 2021, suggesting higher financial leverage and potentially increased financial risk.

Thereafter, the ratio started declining and fluctuating, with some ups and downs, but generally maintaining a range between 2.39 and 3.14. By December 31, 2024, the ratio stood at 2.65, showing a slightly higher level of debt relative to equity compared to the beginning of the period.

Overall, the trend in the financial leverage ratio of Phillips 66 indicates some variability in the company's debt levels relative to its equity over the analyzed period, with potential implications for the company's financial stability and risk profile.