Return on Assets (ROA)
since 2012
Calculation
Phillips 66, ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to Phillips 661 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 5.24% | = | 100 | × | 3,076) | ÷ | 58,720) |
| Dec 31, 2018 | 10.30% | = | 100 | × | 5,595) | ÷ | 54,302) |
| Dec 31, 2017 | 9.39% | = | 100 | × | 5,106) | ÷ | 54,371) |
| Dec 31, 2016 | 3.01% | = | 100 | × | 1,555) | ÷ | 51,653) |
| Dec 31, 2015 | 8.70% | = | 100 | × | 4,227) | ÷ | 48,580) |
| Dec 31, 2014 | 9.77% | = | 100 | × | 4,762) | ÷ | 48,741) |
| Dec 31, 2013 | 7.48% | = | 100 | × | 3,726) | ÷ | 49,798) |
| Dec 31, 2012 | 8.58% | = | 100 | × | 4,124) | ÷ | 48,073) |
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 analysis of financial performance from 2012 to 2019 reveals a volatile trend in asset utilization and profitability, characterized by significant cyclical fluctuations in net income relative to a steadily expanding asset base.
- Return on Assets (ROA) Trends
- The ROA exhibited substantial volatility over the period, reaching a peak of 10.30% in 2018 and a minimum of 3.01% in 2016. Outside of these extremes, the ratio generally fluctuated between 7% and 10%, indicating an inconsistent ability to convert assets into net earnings.
- Net Income Fluctuations
- Net income demonstrated significant instability, marked by a sharp decline to 1,555 million US dollars in 2016 and a subsequent recovery to a period high of 5,595 million US dollars in 2018. A second contraction occurred in 2019, with net income falling to 3,076 million US dollars.
- Asset Base Growth
- Total assets followed a general upward trajectory, increasing from 48,073 million US dollars in 2012 to 58,720 million US dollars in 2019. This growth was consistent regardless of the fluctuations in net income, suggesting a continuous expansion of the company's resource base.
- Asset Efficiency Correlation
- A notable divergence between asset growth and profitability is observed in 2019. Despite total assets reaching their highest level in the analyzed period, the ROA declined to 5.24%, reflecting a decrease in the efficiency of the company's assets in generating net income during that fiscal year.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
Phillips 66, ROA, long-term trends, comparison to competitors
| Phillips 66 | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2019 | 5.24% | 1.23% | 10.20% | 3.95% |
| Dec 31, 2018 | 10.30% | 5.84% | 8.94% | 6.02% |
| Dec 31, 2017 | 9.39% | 3.62% | -1.17% | 5.65% |
| Dec 31, 2016 | 3.01% | -0.19% | -4.03% | 2.37% |
| Dec 31, 2015 | 8.70% | 1.72% | -4.54% | 4.80% |
| Dec 31, 2014 | 9.77% | 7.23% | 5.89% | 9.30% |
| Dec 31, 2013 | 7.48% | 8.44% | 7.76% | 9.39% |
| Dec 31, 2012 | 8.58% | 11.24% | 7.19% | 13.45% |
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, ROA, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Phillips 66 | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2019 | 5.24% | 3.65% |
| Dec 31, 2018 | 10.30% | 6.26% |
| Dec 31, 2017 | 9.39% | 4.15% |
| Dec 31, 2016 | 3.01% | 0.55% |
| Dec 31, 2015 | 8.70% | 2.33% |
| Dec 31, 2014 | 9.77% | 8.01% |
| Dec 31, 2013 | 7.48% | 8.79% |
| Dec 31, 2012 | 8.58% | 11.62% |
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), 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, ROA, long-term trends, comparison to industry (energy)
| Phillips 66 | Energy | |
|---|---|---|
| Dec 31, 2019 | 5.24% | 1.97% |
| Dec 31, 2018 | 10.30% | 5.95% |
| Dec 31, 2017 | 9.39% | 3.55% |
| Dec 31, 2016 | 3.01% | 0.27% |
| Dec 31, 2015 | 8.70% | 2.39% |
| Dec 31, 2014 | 9.77% | 8.02% |
| Dec 31, 2013 | 7.48% | 8.90% |
| Dec 31, 2012 | 8.58% | 11.40% |
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).