Return on Equity (ROE)
since 2012
Calculation
Phillips 66, ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Phillips 661 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 12.35% | = | 100 | × | 3,076) | ÷ | 24,910) |
| Dec 31, 2018 | 22.70% | = | 100 | × | 5,595) | ÷ | 24,653) |
| Dec 31, 2017 | 20.35% | = | 100 | × | 5,106) | ÷ | 25,085) |
| Dec 31, 2016 | 6.95% | = | 100 | × | 1,555) | ÷ | 22,390) |
| Dec 31, 2015 | 18.30% | = | 100 | × | 4,227) | ÷ | 23,100) |
| Dec 31, 2014 | 22.06% | = | 100 | × | 4,762) | ÷ | 21,590) |
| Dec 31, 2013 | 16.97% | = | 100 | × | 3,726) | ÷ | 21,950) |
| Dec 31, 2012 | 19.85% | = | 100 | × | 4,124) | ÷ | 20,775) |
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
Between 2012 and 2019, the Return on Equity (ROE) exhibited significant volatility, characterized by sharp fluctuations that correlate closely with variations in net income. While stockholders' equity showed a gradual upward trend, the efficiency of generating profit from shareholder investments varied substantially over the eight-year period.
- Return on Equity Trends
- The ROE experienced a wide range of movement, starting at 19.85% in 2012 and reaching a periodic low of 6.95% in 2016. A strong recovery followed, with the ratio peaking at 22.70% in 2018 before declining to 12.35% by the end of 2019.
- Net Income Correlation
- Fluctuations in ROE were primarily driven by volatility in net income rather than changes in the equity base. The sharp contraction in 2016 coincided with net income falling to $1,555 million. Conversely, the peak performance in 2018 was supported by net income reaching its highest point in the series at $5,595 million.
- Equity Base Stability
- Stockholders' equity remained relatively stable, increasing from $20,775 million in 2012 to $24,910 million in 2019. The consistency of the equity growth indicates that the volatility observed in the ROE is attributable to operational earnings performance rather than significant alterations in the capital structure.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Phillips 66, ROE, long-term trends, comparison to competitors
| Phillips 66 | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2019 | 12.35% | 2.03% | 20.55% | 7.48% |
| Dec 31, 2018 | 22.70% | 9.59% | 19.59% | 10.87% |
| Dec 31, 2017 | 20.35% | 6.21% | -2.79% | 10.50% |
| Dec 31, 2016 | 6.95% | -0.34% | -10.34% | 4.69% |
| Dec 31, 2015 | 18.30% | 3.00% | -11.14% | 9.45% |
| Dec 31, 2014 | 22.06% | 12.41% | 13.23% | 18.65% |
| Dec 31, 2013 | 16.97% | 14.37% | 17.58% | 18.72% |
| Dec 31, 2012 | 19.85% | 19.18% | 17.56% | 27.06% |
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, ROE, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Phillips 66 | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2019 | 12.35% | 6.59% |
| Dec 31, 2018 | 22.70% | 11.08% |
| Dec 31, 2017 | 20.35% | 7.66% |
| Dec 31, 2016 | 6.95% | 1.07% |
| Dec 31, 2015 | 18.30% | 4.49% |
| Dec 31, 2014 | 22.06% | 15.37% |
| Dec 31, 2013 | 16.97% | 16.83% |
| Dec 31, 2012 | 19.85% | 22.69% |
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, ROE, long-term trends, comparison to industry (energy)
| Phillips 66 | Energy | |
|---|---|---|
| Dec 31, 2019 | 12.35% | 3.63% |
| Dec 31, 2018 | 22.70% | 10.63% |
| Dec 31, 2017 | 20.35% | 6.58% |
| Dec 31, 2016 | 6.95% | 0.52% |
| Dec 31, 2015 | 18.30% | 4.61% |
| Dec 31, 2014 | 22.06% | 15.28% |
| Dec 31, 2013 | 16.97% | 16.85% |
| Dec 31, 2012 | 19.85% | 22.06% |
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).