Stock Analysis on Net
Stock Analysis on Net

Phillips 66 (NYSE:PSX)

This company has been moved to the archive! The financial data has not been updated since February 21, 2020.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Phillips 66, balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Trade names and trademarks 503 503 503 503 503
Refinery air and operating permits 249 250 252 260 266
Other — — 1 1 1
Indefinite-lived intangible assets 752 753 756 764 770
Amortized intangible asset balance 117 116 120 124 136
Intangible assets 869 869 876 888 906
Goodwill 3,270 3,270 3,270 3,270 3,275
Goodwill and intangibles 4,139 4,139 4,146 4,158 4,181

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
Intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Goodwill and intangibles Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.

Adjustments to Financial Statements: Removal of Goodwill

Phillips 66, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 58,720 54,302 54,371 51,653 48,580
Less: Goodwill 3,270 3,270 3,270 3,270 3,275
Total assets (adjusted) 55,450 51,032 51,101 48,383 45,305
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 24,910 24,653 25,085 22,390 23,100
Less: Goodwill 3,270 3,270 3,270 3,270 3,275
Stockholders’ equity (adjusted) 21,640 21,383 21,815 19,120 19,825

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Phillips 66, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Phillips 66, adjusted financial ratios

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Total Asset Turnover
Reported total asset turnover 1.83 2.05 1.88 1.63 2.04
Adjusted total asset turnover 1.93 2.18 2.00 1.74 2.18
Financial Leverage
Reported financial leverage 2.36 2.20 2.17 2.31 2.10
Adjusted financial leverage 2.56 2.39 2.34 2.53 2.29
Return on Equity (ROE)
Reported ROE 12.35% 22.70% 20.35% 6.95% 18.30%
Adjusted ROE 14.21% 26.17% 23.41% 8.13% 21.32%
Return on Assets (ROA)
Reported ROA 5.24% 10.30% 9.39% 3.01% 8.70%
Adjusted ROA 5.55% 10.96% 9.99% 3.21% 9.33%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Phillips 66 adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Phillips 66 adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Phillips 66 adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Phillips 66 adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Phillips 66, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 107,293 111,461 102,354 84,279 98,975
Total assets 58,720 54,302 54,371 51,653 48,580
Activity Ratio
Total asset turnover1 1.83 2.05 1.88 1.63 2.04
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales and other operating revenues 107,293 111,461 102,354 84,279 98,975
Adjusted total assets 55,450 51,032 51,101 48,383 45,305
Activity Ratio
Adjusted total asset turnover2 1.93 2.18 2.00 1.74 2.18

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 107,293 ÷ 58,720 = 1.83

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 107,293 ÷ 55,450 = 1.93

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Phillips 66 adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 58,720 54,302 54,371 51,653 48,580
Stockholders’ equity 24,910 24,653 25,085 22,390 23,100
Solvency Ratio
Financial leverage1 2.36 2.20 2.17 2.31 2.10
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 55,450 51,032 51,101 48,383 45,305
Adjusted stockholders’ equity 21,640 21,383 21,815 19,120 19,825
Solvency Ratio
Adjusted financial leverage2 2.56 2.39 2.34 2.53 2.29

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 58,720 ÷ 24,910 = 2.36

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 55,450 ÷ 21,640 = 2.56

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Phillips 66 adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Phillips 66 3,076 5,595 5,106 1,555 4,227
Stockholders’ equity 24,910 24,653 25,085 22,390 23,100
Profitability Ratio
ROE1 12.35% 22.70% 20.35% 6.95% 18.30%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Phillips 66 3,076 5,595 5,106 1,555 4,227
Adjusted stockholders’ equity 21,640 21,383 21,815 19,120 19,825
Profitability Ratio
Adjusted ROE2 14.21% 26.17% 23.41% 8.13% 21.32%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 ROE = 100 × Net income attributable to Phillips 66 ÷ Stockholders’ equity
= 100 × 3,076 ÷ 24,910 = 12.35%

2 Adjusted ROE = 100 × Net income attributable to Phillips 66 ÷ Adjusted stockholders’ equity
= 100 × 3,076 ÷ 21,640 = 14.21%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Phillips 66 adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Phillips 66 3,076 5,595 5,106 1,555 4,227
Total assets 58,720 54,302 54,371 51,653 48,580
Profitability Ratio
ROA1 5.24% 10.30% 9.39% 3.01% 8.70%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Phillips 66 3,076 5,595 5,106 1,555 4,227
Adjusted total assets 55,450 51,032 51,101 48,383 45,305
Profitability Ratio
Adjusted ROA2 5.55% 10.96% 9.99% 3.21% 9.33%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

1 ROA = 100 × Net income attributable to Phillips 66 ÷ Total assets
= 100 × 3,076 ÷ 58,720 = 5.24%

2 Adjusted ROA = 100 × Net income attributable to Phillips 66 ÷ Adjusted total assets
= 100 × 3,076 ÷ 55,450 = 5.55%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Phillips 66 adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.