Phillips 66 (NYSE:PSX)

The data reveals several key financial trends over the period from 2012 to 2019. There is a noticeable increase in both debt levels and stockholders' equity, with corresponding fluctuations in the debt-to-equity ratio.

Short-term and long-term debt

Debt levels show overall growth throughout the period, rising from $6,974 million in 2012 to $11,763 million in 2019. Despite some fluctuations, the trend is upward, with a significant increase occurring between 2013 and 2014, followed by a steady incremental rise until 2019. This suggests an increasing reliance on borrowed funds over these years.

Stockholders' equity

Equity values also generally increase, moving from $20,775 million in 2012 to $24,910 million in 2019. The equity peaked in 2017 at $25,085 million before slightly declining in subsequent years. This indicates overall growth in the company’s net assets, albeit with some variability after 2017.

Debt to equity ratio

The debt-to-equity ratio reflects the balance between debt financing and equity funding. The ratio decreased from 0.34 in 2012 to a low of 0.28 in 2013, indicating a relative reduction in leverage. However, it then rose to 0.4 in 2014, fluctuating thereafter and ultimately increasing to 0.47 by 2019. This pattern demonstrates that the company’s leverage position has generally increased, suggesting a shift towards higher debt financing relative to equity over time.

In summary, both short-term and long-term debt and stockholders’ equity have grown from 2012 to 2019. Nonetheless, the debt increased at a faster rate relative to equity, as evidenced by the rising debt-to-equity ratio toward the end of the period. This indicates a trend of increasing leverage, which may affect the company’s risk profile and capital structure strategy.