Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Phillips 66, profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Phillips 66 gross profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Phillips 66 operating profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Phillips 66 net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Phillips 66 ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Phillips 66 ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Gross Profit Margin
Phillips 66, gross profit margin 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) | ||||||
| Gross profit | 6,690) | 8,651) | 5,192) | 4,155) | 7,502) | |
| Sales and other operating revenues | 107,293) | 111,461) | 102,354) | 84,279) | 98,975) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 6.24% | 7.76% | 5.07% | 4.93% | 7.58% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Marathon Petroleum Corp. | 11.06% | — | — | — | — | |
| Valero Energy Corp. | 4.41% | — | — | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Sales and other operating revenues
= 100 × 6,690 ÷ 107,293 = 6.24%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Phillips 66 gross profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Operating Profit Margin
Phillips 66, operating profit margin 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) | ||||||
| Operating income | 2,375) | 5,162) | 1,725) | 1,016) | 4,429) | |
| Sales and other operating revenues | 107,293) | 111,461) | 102,354) | 84,279) | 98,975) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 2.21% | 4.63% | 1.69% | 1.21% | 4.47% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Chevron Corp. | 4.83% | — | — | — | — | |
| ConocoPhillips | 32.04% | — | — | — | — | |
| Exxon Mobil Corp. | 8.66% | — | — | — | — | |
| Marathon Petroleum Corp. | 4.50% | — | — | — | — | |
| Occidental Petroleum Corp. | 3.17% | — | — | — | — | |
| Valero Energy Corp. | 3.54% | — | — | — | — | |
| Operating Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | 7.25% | — | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Energy | 5.50% | — | — | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Sales and other operating revenues
= 100 × 2,375 ÷ 107,293 = 2.21%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Phillips 66 operating profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Net Profit Margin
Phillips 66, net profit margin 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) | |
| Sales and other operating revenues | 107,293) | 111,461) | 102,354) | 84,279) | 98,975) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 2.87% | 5.02% | 4.99% | 1.85% | 4.27% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Chevron Corp. | 2.09% | — | — | — | — | |
| ConocoPhillips | 22.07% | — | — | — | — | |
| Exxon Mobil Corp. | 5.61% | — | — | — | — | |
| Marathon Petroleum Corp. | 2.13% | — | — | — | — | |
| Occidental Petroleum Corp. | -3.27% | — | — | — | — | |
| Valero Energy Corp. | 2.24% | — | — | — | — | |
| Net Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | 4.24% | — | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Energy | 2.62% | — | — | — | — | |
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
Net profit margin = 100 × Net income attributable to Phillips 66 ÷ Sales and other operating revenues
= 100 × 3,076 ÷ 107,293 = 2.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Phillips 66 net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Return on Equity (ROE)
Phillips 66, ROE 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) | |
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Chevron Corp. | 2.03% | — | — | — | — | |
| ConocoPhillips | 20.55% | — | — | — | — | |
| Exxon Mobil Corp. | 7.48% | — | — | — | — | |
| Marathon Petroleum Corp. | 7.83% | — | — | — | — | |
| Occidental Petroleum Corp. | -1.95% | — | — | — | — | |
| Valero Energy Corp. | 11.11% | — | — | — | — | |
| ROE, Sector | ||||||
| Oil, Gas & Consumable Fuels | 6.26% | — | — | — | — | |
| ROE, Industry | ||||||
| Energy | 3.86% | — | — | — | — | |
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
ROE = 100 × Net income attributable to Phillips 66 ÷ Stockholders’ equity
= 100 × 3,076 ÷ 24,910 = 12.35%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Phillips 66 ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Return on Assets (ROA)
Phillips 66, ROA 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) | |
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Chevron Corp. | 1.23% | — | — | — | — | |
| ConocoPhillips | 10.20% | — | — | — | — | |
| Exxon Mobil Corp. | 3.95% | — | — | — | — | |
| Marathon Petroleum Corp. | 2.68% | — | — | — | — | |
| Occidental Petroleum Corp. | -0.61% | — | — | — | — | |
| Valero Energy Corp. | 4.50% | — | — | — | — | |
| ROA, Sector | ||||||
| Oil, Gas & Consumable Fuels | 3.09% | — | — | — | — | |
| ROA, Industry | ||||||
| Energy | 1.89% | — | — | — | — | |
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
ROA = 100 × Net income attributable to Phillips 66 ÷ Total assets
= 100 × 3,076 ÷ 58,720 = 5.24%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Phillips 66 ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |