Phillips 66 (NYSE:PSX)

Sales and Other Operating Revenues

The sales and other operating revenues exhibited a declining trend from 2012 to 2016. Starting at 179,460 million US dollars in 2012, revenues decreased steadily, reaching the lowest point of 84,279 million US dollars in 2016. From 2017 onwards, the revenues showed a moderate recovery, increasing to 102,354 million US dollars in 2017 and peaking at 111,461 million US dollars in 2018. A slight decline was noted in 2019, with revenues falling to 107,293 million US dollars. Overall, the period reflects significant volatility with a sharp reduction followed by partial recovery.

Net Income Attributable to Phillips 66

Net income demonstrated notable fluctuations over the observed period. Beginning at 4,124 million US dollars in 2012, it decreased to 1,555 million US dollars in 2016, mirroring the downward trend in revenues. However, net income rebounded strongly in 2017, reaching 5,106 million US dollars, surpassing earlier years, and continued to increase to 5,595 million US dollars in 2018. In 2019, net income declined considerably to 3,076 million US dollars. This pattern suggests periods of volatility in profitability, with a recovery phase after 2016 and a subsequent decrease in the final year analyzed.

The analysis of the financial data over the eight-year period reveals several noteworthy trends and patterns related to asset management and liquidity.

Current Assets

The value of current assets shows variability over the period. It started at 17,962 million US dollars in 2012 and experienced an increase in 2013 to 19,237 million. However, there was a significant decline in 2015, reaching the lowest point of 12,256 million. Following this trough, current assets gradually recovered, with some fluctuations, ending at 14,395 million in 2019. Overall, current assets depict a pattern of decline during the middle years followed by a rebound towards the end of the period.

Total Assets

Total assets increased moderately from 48,073 million US dollars in 2012 to 49,798 million in 2013. Subsequently, total assets experienced a slight decrease in the following two years, remaining relatively stable with minor fluctuations until 2016. Starting in 2016, total assets demonstrated a stronger upward trajectory, peaking at 58,720 million in 2019. This suggests an expansion in the asset base, particularly in the latter years.

Comparative Insights

While current assets showed a downward trend until 2015 followed by recovery, total assets remained fairly steady initially and then grew notably from 2016 onwards. This divergence indicates that growth in total assets may have been driven by increases in non-current or long-term assets rather than short-term assets. The rebound in current assets after 2015 signals improvements in liquidity or working capital availability in the latter part of the period.

In summary, the asset base has expanded over the years with a clear acceleration after 2016. Current assets experienced more volatility but have shown signs of recovery, suggesting a potential strengthening in liquidity position alongside overall asset growth.

The financial data exhibits several notable trends over the observed eight-year period.

Current Liabilities

Current liabilities exhibited fluctuations throughout the period, starting at 12,482 million USD in 2012 and ending higher at 11,646 million USD in 2019. The amount decreased sharply from 2014 to 2015 but then generally increased again through the later years, indicating varying short-term obligations with some volatility.

Total Liabilities

Total liabilities showed a relatively stable range initially, around 27,000 million USD until 2016, when there was an increase to nearly 31,551 million USD by 2019. This indicates a rise in overall financial obligations, particularly pronounced in the last three years, suggestive of increased borrowing or accrued obligations.

Short-term and Long-term Debt

The debt levels started at 6,974 million USD in 2012, dipped slightly in 2013, and then rose consistently after 2014, reaching 11,763 million USD in 2019. This steady increase in debt implies a growing leverage position, possibly to finance expansion or operational needs.

Stockholders’ Equity

Stockholders’ equity experienced moderate growth over the period, rising from 20,775 million USD in 2012 to 24,910 million USD in 2019, with some minor fluctuations. This growth reflects accumulated retained earnings or additional equity investments, enhancing the company’s net asset base despite variable liabilities.

Overall, the data suggest a trend toward increasing leverage, with rising total liabilities and debt levels, while maintaining a stable upward trajectory in equity. The fluctuations in current liabilities point to adjustments in short-term financial management, while the expanding debt and equity base indicate strategic financial positioning over the period.

The analysis of the cash flow activities over the examined periods reveals several prominent trends in operating, investing, and financing cash flows. The company demonstrates notable variability in cash generation and usage across these categories, indicating shifts in strategic and operational dynamics throughout the years.

Operating Activities

Net cash provided by operating activities exhibits considerable fluctuation, starting at 4,296 million USD in 2012 and peaking at 7,573 million USD in 2018. Despite intermittent decreases, such as the drop from 5,942 million USD in 2013 to 3,527 million USD in 2014, the overall trend shows resilience with a recovery followed by another decline to 4,808 million USD by 2019. This pattern suggests periods of operational challenges and recoveries, reflecting variations in core business performance and possibly external market conditions affecting operational cash flows.

Investing Activities

Cash flows from investing activities consistently reflect an outflow, indicating ongoing capital expenditures, acquisitions, or investments. The outflows increase substantially from -1,535 million USD in 2012 to a peak outflow of -5,738 million USD in 2015. Following this peak, the outflow trend moderates but remains significantly negative, with outflows fluctuating between -1,146 million USD and -3,688 million USD in the subsequent years. This sustained negative investment cash flow highlights a strategy focused on growth or asset renewal, albeit with varying emphases across the periods.

Financing Activities

Financing cash flows demonstrate a transition from positive inflows to predominant negative outflows. In 2012, the net financing cash was a positive 699 million USD, shifting sharply to negative territory at -3,679 million USD in 2013. The company consistently used cash for financing activities from 2013 onwards, with significant outflows, notably -5,167 million USD in 2018. These changes might reflect increased debt repayment, share repurchases, dividend distributions, or other capital restructuring actions. The negative financing cash flows in most years indicate a strategic focus on deleveraging or returning capital to shareholders.

In summary, while operational cash generation shows some volatility, the company has maintained positive net cash from operations most years. Investing activities reflect ambitious capital deployment, peaking in mid-period years and tapering thereafter. Financing activities transitioned from modest inflows to considerable outflows, suggesting a strategic shift towards strengthening the capital structure or rewarding shareholders. Together, these trends portray a company actively managing its cash flow components to support ongoing operational needs, growth investments, and financial strategy adjustments over time.

The analysis of the financial data reveals notable trends in earnings per share and dividends over the examined period.

Basic Earnings per Share (EPS)

The basic EPS showed a fluctuating trend. Starting at 6.55 USD in 2012, it slightly decreased in 2013 to 6.07 USD, then increased significantly to a peak of 8.4 USD in 2014. From 2014 to 2016, EPS experienced a decline, reaching a low of 2.94 USD in 2016. A strong recovery followed in 2017 and 2018, with EPS rising sharply to 9.9 USD and 11.87 USD respectively. However, in 2019, there was a considerable decrease to 6.8 USD.

Diluted Earnings per Share

The diluted EPS mirrored the basic EPS trend closely, indicating consistency in earnings performance across these two measures. It decreased slightly from 6.48 USD in 2012 to 6.02 USD in 2013, then increased to 8.33 USD in 2014. Following this peak, diluted EPS declined to 2.92 USD in 2016, then recovered significantly in 2017 and 2018, reaching 9.85 USD and 11.8 USD, respectively. In 2019, it dropped to 6.77 USD, consistent with trends observed in the basic EPS.

Dividend per Share

The dividend per share exhibited a consistent upward trend throughout the period, demonstrating a steady increase each year. Starting from 0.45 USD in 2012, dividends rose sharply to 1.33 USD in 2013 and continued to increase annually, reaching 3.5 USD by 2019. This upward trajectory indicates a sustained commitment to returning value to shareholders despite fluctuations in earnings.

In summary, while earnings per share displayed volatility, with significant declines and subsequent recoveries, dividends per share increased steadily. This suggests the company maintained or enhanced shareholder returns through dividends even during periods of earnings volatility.