Net Profit Margin
since 2012
Calculation
Phillips 66, net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Phillips 661 | ÷ | Sales and other operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 2.87% | = | 100 | × | 3,076) | ÷ | 107,293) |
| Dec 31, 2018 | 5.02% | = | 100 | × | 5,595) | ÷ | 111,461) |
| Dec 31, 2017 | 4.99% | = | 100 | × | 5,106) | ÷ | 102,354) |
| Dec 31, 2016 | 1.85% | = | 100 | × | 1,555) | ÷ | 84,279) |
| Dec 31, 2015 | 4.27% | = | 100 | × | 4,227) | ÷ | 98,975) |
| Dec 31, 2014 | 2.95% | = | 100 | × | 4,762) | ÷ | 161,212) |
| Dec 31, 2013 | 2.17% | = | 100 | × | 3,726) | ÷ | 171,596) |
| Dec 31, 2012 | 2.30% | = | 100 | × | 4,124) | ÷ | 179,460) |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 US$ in millions
The financial performance between 2012 and 2019 is characterized by significant volatility in both top-line revenue and bottom-line profitability. A notable contraction in sales occurred between 2014 and 2016, which coincided with fluctuations in net income and profit margins.
- Revenue and Net Income Dynamics
- Sales and other operating revenues experienced a substantial decline from US$ 161,212 million in 2014 to a period low of US$ 84,279 million in 2016. While net income remained relatively stable through 2015, it plummeted to US$ 1,555 million in 2016, marking the lowest point of profitability within the analyzed period.
- Net Profit Margin Volatility
- The net profit margin exhibited significant fluctuations, ranging from a low of 1.85% in 2016 to a peak of 5.02% in 2018. An observation of the 2015 fiscal year reveals a margin expansion to 4.27% despite a sharp decrease in total revenues, suggesting a temporary improvement in operational efficiency or cost management during that period.
- Recovery and Subsequent Contraction
- A strong recovery phase is evident from 2017 to 2018, during which the net profit margin climbed to 4.99% and 5.02%, respectively. This trend aligned with net income reaching its highest recorded level of US$ 5,595 million in 2018. However, this growth trend reversed in 2019, as the net profit margin contracted to 2.87% and net income declined to US$ 3,076 million.
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Comparison to Competitors
Phillips 66, net profit margin, long-term trends, comparison to competitors
| Phillips 66 | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2019 | 2.87% | 2.09% | 22.07% | 5.61% |
| Dec 31, 2018 | 5.02% | 9.33% | 17.18% | 7.46% |
| Dec 31, 2017 | 4.99% | 6.83% | -2.94% | 8.31% |
| Dec 31, 2016 | 1.85% | -0.45% | -15.26% | 3.59% |
| Dec 31, 2015 | 4.27% | 3.53% | -14.98% | 6.22% |
| Dec 31, 2014 | 2.95% | 9.60% | 13.08% | 8.25% |
| Dec 31, 2013 | 2.17% | 9.73% | 16.83% | 7.74% |
| Dec 31, 2012 | 2.30% | 11.35% | 14.54% | 9.90% |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Phillips 66, net profit margin, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Phillips 66 | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2019 | 2.87% | 5.71% |
| Dec 31, 2018 | 5.02% | 8.83% |
| Dec 31, 2017 | 4.99% | 7.00% |
| Dec 31, 2016 | 1.85% | 1.06% |
| Dec 31, 2015 | 4.27% | 3.89% |
| Dec 31, 2014 | 2.95% | 9.06% |
| Dec 31, 2013 | 2.17% | 9.08% |
| Dec 31, 2012 | 2.30% | 10.72% |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Industry (Energy)
Phillips 66, net profit margin, long-term trends, comparison to industry (energy)
| Phillips 66 | Energy | |
|---|---|---|
| Dec 31, 2019 | 2.87% | 3.11% |
| Dec 31, 2018 | 5.02% | 8.68% |
| Dec 31, 2017 | 4.99% | 6.15% |
| Dec 31, 2016 | 1.85% | 0.54% |
| Dec 31, 2015 | 4.27% | 4.04% |
| Dec 31, 2014 | 2.95% | 9.21% |
| Dec 31, 2013 | 2.17% | 9.44% |
| Dec 31, 2012 | 2.30% | 10.84% |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).