Phillips 66 (NYSE:PSX)

The financial data exhibits various trends in key performance indicators over the five-year period ending December 31, 2019. Sales and other operating revenues experienced fluctuations, decreasing from 2015 to 2016, followed by a recovery and peak in 2018, then a slight decline in 2019. Purchased crude oil and products, a significant cost component, showed a similar pattern with a decrease in 2016, an increase in 2017 and 2018, and a marginal decline in 2019, suggesting responsiveness to market conditions.

Operating expenses steadily increased each year, though at a moderate rate. Correspondingly, the cost of operating revenues rose significantly, reaching its highest value in 2018 before slightly decreasing in 2019. Excise taxes on sales of petroleum products declined gradually from 2015 to 2017, and data is missing thereafter, limiting further analysis of tax cost trends.

Gross profit demonstrated a dip in 2016 relative to 2015, followed by incremental growth in the next two years before declining again in 2019. This volatility may reflect fluctuating margins due to changes in sales, costs, or external economic factors.

Selling, general, and administrative expenses remained relatively stable throughout the period, indicating controlled overhead costs. Depreciation and amortization expenses increased steadily till 2018 and then slightly decreased in 2019, reflecting changes in asset base or accounting estimates.

Notably, impairments were minimal and stable from 2015 to 2018, but there was a substantial increase in 2019, indicating significant asset write-downs affecting profitability. Taxes other than income taxes and accretion on discounted liabilities showed minor increases or remained steady, contributing predictably to expense streams.

Operating income declined sharply from 2015 to 2016, then showed improvement through 2018 before dropping again in 2019, demonstrating variability in operational efficiency or market conditions. Equity in earnings of affiliates increased over time, peaking in 2018, and then decreased, which impacts overall profitability positively during the growth phase.

Net gains on dispositions remained modest and relatively stable. Interest income was low but showed a gradual increase, enhancing non-operating income slightly. An isolated gain on consolidation of business was recognized in 2017, contributing to income in that year only. Other income fluctuations were modest and irregular.

Interest and debt expense increased until 2018, then declined in 2019, indicating possible changes in debt levels or interest rates. Foreign currency transaction gains and losses fluctuated, showing inconsistent currency impact on earnings.

Income before income taxes showed a trend similar to operating income with a steep fall in 2016, growth reaching a peak in 2018, and a decline in 2019. Income tax expense was erratic, with a notable income tax benefit in 2017 contrasting with expenses in other years, leading to fluctuating net income after tax.

Net income followed the pattern of income before taxes but with greater volatility due to tax effects. It dropped significantly in 2016, surged in 2017 and 2018, and declined in 2019. Net income attributable to noncontrolling interests increased in magnitude over the years, marginally reducing net income attributable to the company. The net income attributable to the company reflected these trends, confirming the influence of tax, operational, and impairment effects on the bottom line.

Summary of Key Trends:

- Revenues showed cyclical movement with the highest point in 2018.

- Costs associated with crude oil purchases and operating expenses generally increased, influencing gross profit volatility.

- Significant impairment in 2019 adversely affected profits.

- Operating income and income before taxes followed a similar pattern of decrease in 2016, recovery to a peak in 2018, and decline in 2019.

- Income tax expense was inconsistent, contributing to fluctuations in net income.

- The company sustained stable administrative expenses amidst changing operational conditions.

- Net income was volatile, peaking in 2018, reflecting the combined effects of operational performance, impairments, and taxes.