Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Phillips 66, solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Phillips 66 debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Phillips 66 debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Phillips 66 debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Phillips 66 debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Phillips 66 debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Phillips 66 debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Phillips 66 financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Phillips 66 interest coverage ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Phillips 66 fixed charge coverage ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Debt to Equity
Phillips 66, debt to equity calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 547) | 67) | 41) | 550) | 44) | |
| Long-term debt | 11,216) | 11,093) | 10,069) | 9,588) | 8,843) | |
| Total debt | 11,763) | 11,160) | 10,110) | 10,138) | 8,887) | |
| Stockholders’ equity | 24,910) | 24,653) | 25,085) | 22,390) | 23,100) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.47 | 0.45 | 0.40 | 0.45 | 0.38 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | 0.19 | — | — | — | — | |
| ConocoPhillips | 0.43 | — | — | — | — | |
| Exxon Mobil Corp. | 0.24 | — | — | — | — | |
| Occidental Petroleum Corp. | 1.13 | — | — | — | — | |
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).
1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 11,763 ÷ 24,910 = 0.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Phillips 66 debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity (including Operating Lease Liability)
Phillips 66, debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 547) | 67) | 41) | 550) | 44) | |
| Long-term debt | 11,216) | 11,093) | 10,069) | 9,588) | 8,843) | |
| Total debt | 11,763) | 11,160) | 10,110) | 10,138) | 8,887) | |
| Operating lease liabilities (included in Other accruals) | 455) | —) | —) | —) | —) | |
| Operating lease liabilities (included in Other liabilities and deferred credits) | 806) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 13,024) | 11,160) | 10,110) | 10,138) | 8,887) | |
| Stockholders’ equity | 24,910) | 24,653) | 25,085) | 22,390) | 23,100) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.52 | 0.45 | 0.40 | 0.45 | 0.38 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.21 | — | — | — | — | |
| ConocoPhillips | 0.45 | — | — | — | — | |
| Exxon Mobil Corp. | 0.27 | — | — | — | — | |
| Occidental Petroleum Corp. | 1.17 | — | — | — | — | |
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).
1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 13,024 ÷ 24,910 = 0.52
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Phillips 66 debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Capital
Phillips 66, debt to capital calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 547) | 67) | 41) | 550) | 44) | |
| Long-term debt | 11,216) | 11,093) | 10,069) | 9,588) | 8,843) | |
| Total debt | 11,763) | 11,160) | 10,110) | 10,138) | 8,887) | |
| Stockholders’ equity | 24,910) | 24,653) | 25,085) | 22,390) | 23,100) | |
| Total capital | 36,673) | 35,813) | 35,195) | 32,528) | 31,987) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.32 | 0.31 | 0.29 | 0.31 | 0.28 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | 0.16 | — | — | — | — | |
| ConocoPhillips | 0.30 | — | — | — | — | |
| Exxon Mobil Corp. | 0.20 | — | — | — | — | |
| Occidental Petroleum Corp. | 0.53 | — | — | — | — | |
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).
1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 11,763 ÷ 36,673 = 0.32
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Phillips 66 debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Capital (including Operating Lease Liability)
Phillips 66, debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 547) | 67) | 41) | 550) | 44) | |
| Long-term debt | 11,216) | 11,093) | 10,069) | 9,588) | 8,843) | |
| Total debt | 11,763) | 11,160) | 10,110) | 10,138) | 8,887) | |
| Operating lease liabilities (included in Other accruals) | 455) | —) | —) | —) | —) | |
| Operating lease liabilities (included in Other liabilities and deferred credits) | 806) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 13,024) | 11,160) | 10,110) | 10,138) | 8,887) | |
| Stockholders’ equity | 24,910) | 24,653) | 25,085) | 22,390) | 23,100) | |
| Total capital (including operating lease liability) | 37,934) | 35,813) | 35,195) | 32,528) | 31,987) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.34 | 0.31 | 0.29 | 0.31 | 0.28 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.18 | — | — | — | — | |
| ConocoPhillips | 0.31 | — | — | — | — | |
| Exxon Mobil Corp. | 0.22 | — | — | — | — | |
| Occidental Petroleum Corp. | 0.54 | — | — | — | — | |
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).
1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,024 ÷ 37,934 = 0.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Phillips 66 debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Assets
Phillips 66, debt to assets calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 547) | 67) | 41) | 550) | 44) | |
| Long-term debt | 11,216) | 11,093) | 10,069) | 9,588) | 8,843) | |
| Total debt | 11,763) | 11,160) | 10,110) | 10,138) | 8,887) | |
| Total assets | 58,720) | 54,302) | 54,371) | 51,653) | 48,580) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.20 | 0.21 | 0.19 | 0.20 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | 0.11 | — | — | — | — | |
| ConocoPhillips | 0.21 | — | — | — | — | |
| Exxon Mobil Corp. | 0.13 | — | — | — | — | |
| Occidental Petroleum Corp. | 0.35 | — | — | — | — | |
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).
1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 11,763 ÷ 58,720 = 0.20
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Phillips 66 debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Assets (including Operating Lease Liability)
Phillips 66, debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 547) | 67) | 41) | 550) | 44) | |
| Long-term debt | 11,216) | 11,093) | 10,069) | 9,588) | 8,843) | |
| Total debt | 11,763) | 11,160) | 10,110) | 10,138) | 8,887) | |
| Operating lease liabilities (included in Other accruals) | 455) | —) | —) | —) | —) | |
| Operating lease liabilities (included in Other liabilities and deferred credits) | 806) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 13,024) | 11,160) | 10,110) | 10,138) | 8,887) | |
| Total assets | 58,720) | 54,302) | 54,371) | 51,653) | 48,580) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.22 | 0.21 | 0.19 | 0.20 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.13 | — | — | — | — | |
| ConocoPhillips | 0.22 | — | — | — | — | |
| Exxon Mobil Corp. | 0.15 | — | — | — | — | |
| Occidental Petroleum Corp. | 0.37 | — | — | — | — | |
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).
1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,024 ÷ 58,720 = 0.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Phillips 66 debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Financial Leverage
Phillips 66, financial leverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | 1.65 | — | — | — | — | |
| ConocoPhillips | 2.02 | — | — | — | — | |
| Exxon Mobil Corp. | 1.89 | — | — | — | — | |
| Occidental Petroleum Corp. | 3.19 | — | — | — | — | |
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).
1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 58,720 ÷ 24,910 = 2.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Phillips 66 financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019. |
Interest Coverage
Phillips 66, interest coverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Phillips 66 | 3,076) | 5,595) | 5,106) | 1,555) | 4,227) | |
| Add: Net income attributable to noncontrolling interest | 301) | 278) | 142) | 89) | 53) | |
| Add: Income tax expense | 801) | 1,572) | (1,693) | 547) | 1,764) | |
| Add: Interest and debt expense | 458) | 504) | 438) | 338) | 310) | |
| Earnings before interest and tax (EBIT) | 4,636) | 7,949) | 3,993) | 2,529) | 6,354) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 10.12 | 15.77 | 9.12 | 7.48 | 20.50 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | 7.94 | — | — | — | — | |
| ConocoPhillips | 13.24 | — | — | — | — | |
| Exxon Mobil Corp. | 25.16 | — | — | — | — | |
| Occidental Petroleum Corp. | 1.17 | — | — | — | — | |
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).
1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,636 ÷ 458 = 10.12
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Phillips 66 interest coverage ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Fixed Charge Coverage
Phillips 66, fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Phillips 66 | 3,076) | 5,595) | 5,106) | 1,555) | 4,227) | |
| Add: Net income attributable to noncontrolling interest | 301) | 278) | 142) | 89) | 53) | |
| Add: Income tax expense | 801) | 1,572) | (1,693) | 547) | 1,764) | |
| Add: Interest and debt expense | 458) | 504) | 438) | 338) | 310) | |
| Earnings before interest and tax (EBIT) | 4,636) | 7,949) | 3,993) | 2,529) | 6,354) | |
| Add: Operating lease cost | 531) | 669) | 680) | 669) | 641) | |
| Earnings before fixed charges and tax | 5,167) | 8,618) | 4,673) | 3,198) | 6,995) | |
| Interest and debt expense | 458) | 504) | 438) | 338) | 310) | |
| Operating lease cost | 531) | 669) | 680) | 669) | 641) | |
| Fixed charges | 989) | 1,173) | 1,118) | 1,007) | 951) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.22 | 7.35 | 4.18 | 3.18 | 7.36 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Chevron Corp. | 2.62 | — | — | — | — | |
| ConocoPhillips | 9.51 | — | — | — | — | |
| Exxon Mobil Corp. | 5.66 | — | — | — | — | |
| Occidental Petroleum Corp. | 0.91 | — | — | — | — | |
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).
1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,167 ÷ 989 = 5.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Phillips 66 fixed charge coverage ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |