Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Phillips 66, long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows an initial downward trend from March 2016, starting at 5.02 and declining steadily to a low of 4.05 by December 2016. From that point onward, the ratio exhibits a recovery and upward movement, reaching a peak of 5.18 in June 2018. Following this peak, there is a gradual decrease, leading to a value of 4.51 at the end of 2019. Overall, the ratio demonstrates cyclical fluctuations with a mid-period low and a subsequent rebound before a moderate decline.
- Total Asset Turnover
- The total asset turnover ratio begins at 2.04 in March 2016 and shows a consistent downward trend through December 2016, reaching 1.63. This decline suggests a reduced efficiency in asset utilization during this period. Subsequently, the ratio improves gradually, climbing back to approximately 2.01 by December 2018. However, in 2019, the ratio declines once again to 1.83 by year-end. The pattern indicates periods of diminishing and recovering asset efficiency with a slight downturn at the close of the observed years.
- Equity Turnover
- The equity turnover ratio begins at 4.28 in March 2016 and trends downward to 3.61 in December 2016, indicating decreased sales generation per equity unit during this timeframe. From early 2017, the ratio increases steadily to a high of 4.81 in September 2018, reflecting improved utilization of equity. After reaching this peak, the ratio declines mildly, finishing at 4.31 at the end of 2019. The data points to a pronounced recovery and growth phase in equity efficiency after the initial decline, followed by a slight moderation in performance.
Net Fixed Asset Turnover
Phillips 66, net fixed asset turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Sales and other operating revenues | 29,125) | 27,218) | 27,847) | 23,103) | 29,098) | 29,788) | 28,980) | 23,595) | 29,746) | 25,627) | 24,087) | 22,894) | 23,397) | 21,624) | 21,849) | 17,409) | 21,893) | 25,792) | 28,512) | 22,778) | ||||||
| Net properties, plants and equipment | 23,786) | 22,954) | 22,503) | 22,263) | 22,018) | 21,625) | 21,465) | 21,500) | 21,460) | 21,303) | 21,293) | 21,240) | 20,855) | 20,447) | 20,247) | 20,075) | 19,721) | 19,257) | 18,765) | 17,918) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover1 | 4.51 | 4.67 | 4.88 | 4.98 | 5.06 | 5.18 | 5.03 | 4.79 | 4.77 | 4.51 | 4.32 | 4.23 | 4.04 | 4.05 | 4.29 | 4.66 | 5.02 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Net fixed asset turnover
= (Sales and other operating revenuesQ4 2019
+ Sales and other operating revenuesQ3 2019
+ Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019)
÷ Net properties, plants and equipment
= (29,125 + 27,218 + 27,847 + 23,103)
÷ 23,786 = 4.51
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales and other operating revenues exhibit notable fluctuations across the observed periods. Starting at approximately 22.8 billion USD in the first quarter of 2015, revenues peaked at around 28.5 billion USD in the second quarter of 2015 before experiencing a decline by the end of 2015. The first half of 2016 shows a lower revenue base, with an increase observed in the subsequent quarters reaching almost 29 billion USD by the end of 2017 and early 2018. After this peak, a downward trend is observed through 2019, with revenues falling back to approximately 27–29 billion USD levels, indicating some volatility but generally strong seasonal peaks.
- Net Properties, Plants and Equipment
- This asset base demonstrates a consistent growth trajectory over the reported periods. Starting at about 17.9 billion USD in early 2015, there is a steady increase each quarter, reaching close to 23.8 billion USD by the final quarter of 2019. This suggests ongoing capital investment or asset acquisition, reflecting a potential strategy focused on expanding or upgrading physical infrastructure over the five-year span. The steady rise shows no periods of significant decline or asset disposals.
- Net Fixed Asset Turnover Ratio
- Limited data exists for the early part of this ratio series. From the available data starting in late 2015, the turnover ratio begins at 5.02 and progressively declines through 2016, reaching a low around 4.05 by the end of that year. In the following years, the ratio rebounds, peaking at 5.18 in the last quarter of 2018. After this peak, the ratio trends downwards again, ending the series at approximately 4.51 by the end of 2019. This pattern indicates variations in asset utilization efficiency, with periods of intensified sales relative to fixed assets, followed by phases where asset growth may have outpaced sales increases.
Total Asset Turnover
Phillips 66, total asset turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Sales and other operating revenues | 29,125) | 27,218) | 27,847) | 23,103) | 29,098) | 29,788) | 28,980) | 23,595) | 29,746) | 25,627) | 24,087) | 22,894) | 23,397) | 21,624) | 21,849) | 17,409) | 21,893) | 25,792) | 28,512) | 22,778) | ||||||
| Total assets | 58,720) | 58,741) | 57,781) | 57,855) | 54,302) | 55,884) | 54,826) | 52,132) | 54,371) | 52,712) | 51,828) | 51,405) | 51,653) | 50,254) | 50,361) | 48,246) | 48,580) | 49,415) | 49,874) | 49,077) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Total asset turnover1 | 1.83 | 1.83 | 1.90 | 1.92 | 2.05 | 2.01 | 1.97 | 1.98 | 1.88 | 1.82 | 1.78 | 1.75 | 1.63 | 1.65 | 1.73 | 1.94 | 2.04 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Total asset turnover
= (Sales and other operating revenuesQ4 2019
+ Sales and other operating revenuesQ3 2019
+ Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019)
÷ Total assets
= (29,125 + 27,218 + 27,847 + 23,103)
÷ 58,720 = 1.83
2 Click competitor name to see calculations.
- Sales and other operating revenues
- The sales and other operating revenues experienced notable fluctuations throughout the observed periods. Initially, there was an increase from 22,778 million USD in March 2015 to 28,512 million USD in June 2015. Following this, revenues declined to 21,893 million USD by December 2015. In 2016, a gradual recovery was observed with revenues ranging between approximately 17,409 million and 23,397 million USD. A more pronounced upward trend took place during 2017 and 2018, peaking at 29,788 million USD in September 2018 and maintaining elevated levels above 29,000 million USD in the final quarter of 2018. However, in 2019 revenues fluctuated again, with a low of 23,103 million USD in the first quarter and ending the year around 29,125 million USD, indicating volatility but an overall upward trend over the five-year span.
- Total assets
- Total assets showed a relatively stable yet gradually increasing trend from 2015 to 2019. Starting at 49,077 million USD in March 2015, assets remained within a range slightly above 48,000 million USD until late 2016. From 2017 onwards, total assets consistently increased, surpassing 54,000 million USD by the end of 2017 and reaching approximately 58,720 million USD by December 2019. This steady growth reflects ongoing asset accumulation or revaluation over the periods considered.
- Total asset turnover
- The total asset turnover ratio, which measures the efficiency of asset use, demonstrated a general decline from early 2015 through late 2016, starting at 2.04 and decreasing to approximately 1.63. From 2017 onwards, the ratio showed a rebound to levels around 1.75 to 2.05, peaking near 2.05 in March 2019. Nevertheless, in the latter part of 2019, the turnover ratio experienced a moderate decrease to roughly 1.83. This pattern suggests an initial decrease in asset utilization efficiency followed by a recovery and stabilization, reflecting variations in the relationship between sales revenue and asset base over time.
Equity Turnover
Phillips 66, equity turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Sales and other operating revenues | 29,125) | 27,218) | 27,847) | 23,103) | 29,098) | 29,788) | 28,980) | 23,595) | 29,746) | 25,627) | 24,087) | 22,894) | 23,397) | 21,624) | 21,849) | 17,409) | 21,893) | 25,792) | 28,512) | 22,778) | ||||||
| Stockholders’ equity | 24,910) | 24,857) | 24,752) | 24,217) | 24,653) | 23,319) | 22,536) | 21,923) | 25,085) | 22,523) | 22,368) | 22,364) | 22,390) | 22,905) | 22,842) | 22,788) | 23,100) | 23,194) | 22,389) | 21,760) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Equity turnover1 | 4.31 | 4.32 | 4.44 | 4.58 | 4.52 | 4.81 | 4.79 | 4.70 | 4.08 | 4.26 | 4.11 | 4.01 | 3.76 | 3.61 | 3.81 | 4.11 | 4.28 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Equity turnover
= (Sales and other operating revenuesQ4 2019
+ Sales and other operating revenuesQ3 2019
+ Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019)
÷ Stockholders’ equity
= (29,125 + 27,218 + 27,847 + 23,103)
÷ 24,910 = 4.31
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales figures demonstrate seasonal fluctuations with recurring quarterly variations throughout the observed periods. From March 2015 to December 2015, revenues declined from 22,778 million USD to 21,893 million USD, reaching a low point in the first quarter of 2016 at 17,409 million USD. Following this trough, revenues showed a recovery trend, peaking at 29,746 million USD by December 2017. The subsequent quarters experienced some volatility but generally maintained a higher level compared to early periods, with quarterly revenues fluctuating around the 27,000–29,000 million USD range by the end of 2019. Overall, there is an upward trajectory in sales over the five-year span, notwithstanding intermittent seasonal dips.
- Stockholders’ Equity
- Stockholders’ equity exhibited relative stability throughout the observed timeframe, with values consistently ranging between approximately 21,700 million USD and 25,000 million USD. Notably, a slight decline occurred from March 2015 (21,760 million USD) to December 2016 (22,390 million USD), followed by a gradual increase reaching a peak near 24,910 million USD by December 2019. The equity showed less pronounced seasonal variation compared to revenue, suggesting steady capital base management with moderate growth over time.
- Equity Turnover Ratio
- The equity turnover ratio, available from the fourth quarter of 2015 onward, exhibits a pattern of gradual decline from 4.28 in December 2015 to 3.61 by December 2016, indicating a reduction in efficiency in generating revenue from shareholders’ equity during that period. Subsequently, the ratio improved steadily, reaching a peak of 4.81 in September 2018, before slightly declining towards the end of 2019 to levels around 4.31. The fluctuations suggest alternating phases of efficiency in utilizing equity for revenue generation, with an overall improvement trend in the mid-to-late periods analyzed.
- Summary of Trends and Insights
- The financial data reflects an overall positive revenue growth trajectory tempered by seasonal and cyclical industry factors. The stockholders’ equity remains relatively stable with modest growth, indicating sound financial structure maintenance. The equity turnover ratio’s movements correspond to changes in revenue relative to equity, highlighting periods of both improving and declining asset utilization efficiency. Collectively, these trends suggest progressive operational scaling alongside consistent capital base management, with efficiency in equity use peaking during 2018 and stabilizing thereafter.