Name: Phillips 66 (NYSE:PSX) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Phillips 66, consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Accounts payable	8,043)	6,113)	7,242)	6,395)	5,155)
Accounts payable, related parties	532)	473)	785)	666)	500)
Short-term debt	547)	67)	41)	550)	44)
Accrued income and other taxes	979)	1,116)	1,002)	805)	878)
Employee benefit obligations	710)	724)	582)	527)	576)
Other accruals	835)	442)	455)	520)	378)
Current liabilities	11,646)	8,935)	10,107)	9,463)	7,531)
Long-term debt	11,216)	11,093)	10,069)	9,588)	8,843)
Asset retirement obligations and accrued environmental costs	638)	624)	641)	655)	665)
Deferred income taxes	5,553)	5,275)	5,008)	6,743)	6,041)
Employee benefit obligations	1,044)	867)	884)	1,216)	1,285)
Other liabilities and deferred credits	1,454)	355)	234)	263)	277)
Noncurrent liabilities	19,905)	18,214)	16,836)	18,465)	17,111)
Total liabilities	31,551)	27,149)	26,943)	27,928)	24,642)
Common stock, $0.01 par value	6)	6)	6)	6)	6)
Capital in excess of par	20,301)	19,873)	19,768)	19,559)	19,145)
Treasury stock, at cost	(16,673)	(15,023)	(10,378)	(8,788)	(7,746)
Retained earnings	22,064)	20,489)	16,306)	12,608)	12,348)
Accumulated other comprehensive loss	(788)	(692)	(617)	(995)	(653)
Stockholders’ equity	24,910)	24,653)	25,085)	22,390)	23,100)
Noncontrolling interests	2,259)	2,500)	2,343)	1,335)	838)
Total equity	27,169)	27,153)	27,428)	23,725)	23,938)
Total liabilities and equity	58,720)	54,302)	54,371)	51,653)	48,580)

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).

The company's total liabilities and equity expanded from 48.58 billion US$ in 2015 to 58.72 billion US$ by 2019, reflecting a general growth in the balance sheet scale. Total liabilities grew more aggressively than total equity, rising from 24.64 billion US$ to 31.55 billion US$ over the period, indicating an increase in the company's overall leverage.

Current Liability Trends: Current liabilities exhibited an upward trajectory, increasing from 7.53 billion US$ in 2015 to 11.65 billion US$ in 2019. This growth was primarily driven by accounts payable, which rose from 5.16 billion US$ to 8.04 billion US$. Short-term debt showed significant volatility, fluctuating from a low of 41 million US$ in 2017 to a peak of 547 million US$ in 2019, suggesting opportunistic use of short-term financing.
Noncurrent Liability and Debt Profile: Noncurrent liabilities increased from 17.11 billion US$ in 2015 to 19.91 billion US$ in 2019. A key driver was the steady rise in long-term debt, which climbed from 8.84 billion US$ to 11.22 billion US$ over the five-year window. Deferred income taxes remained a substantial component of noncurrent liabilities, though they fluctuated, ending at 5.55 billion US$ in 2019 after a peak of 6.74 billion US$ in 2016.
Equity and Capital Allocation: Total equity grew modestly from 23.94 billion US$ in 2015 to 27.17 billion US$ in 2019. This stability was the result of two opposing forces: a significant increase in retained earnings and an aggressive share repurchase program. Retained earnings rose substantially from 12.35 billion US$ to 22.06 billion US$, signaling strong cumulative profitability. Simultaneously, treasury stock increased from 7.75 billion US$ to 16.67 billion US$ in absolute value, indicating that a large portion of generated capital was returned to shareholders via buybacks.
Solvency and Leverage Observations: The ratio of total liabilities to total equity increased over the period, moving from approximately 1.03 in 2015 to 1.16 in 2019. While the company maintained a relatively balanced capital structure, the increasing reliance on long-term debt and the expansion of accounts payable contributed to a higher liability profile relative to the equity base.

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