Total Asset Turnover
since 2012
Calculation
Phillips 66, total asset turnover, long-term trends, calculation
| Total asset turnover | = | Sales and other operating revenues1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2019 | 1.83 | = | 107,293) | ÷ | 58,720) |
| Dec 31, 2018 | 2.05 | = | 111,461) | ÷ | 54,302) |
| Dec 31, 2017 | 1.88 | = | 102,354) | ÷ | 54,371) |
| Dec 31, 2016 | 1.63 | = | 84,279) | ÷ | 51,653) |
| Dec 31, 2015 | 2.04 | = | 98,975) | ÷ | 48,580) |
| Dec 31, 2014 | 3.31 | = | 161,212) | ÷ | 48,741) |
| Dec 31, 2013 | 3.45 | = | 171,596) | ÷ | 49,798) |
| Dec 31, 2012 | 3.73 | = | 179,460) | ÷ | 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 operational efficiency between 2012 and 2019 reveals a significant decline in asset utilization. The total asset turnover ratio experienced a persistent downward trajectory, falling from a peak of 3.73 in 2012 to 1.83 by 2019, representing a substantial reduction in the ability to generate revenue relative to the size of the asset base.
- Revenue Volatility
- A substantial contraction in sales and other operating revenues is the primary driver of the declining turnover ratio. Revenues decreased from US$ 179,460 million in 2012 to a low of US$ 84,279 million in 2016. While a moderate recovery occurred between 2017 and 2018, peaking at US$ 111,461 million, revenue levels remained significantly lower than those observed during the 2012-2014 period.
- Asset Base Growth
- Total assets remained relatively stable compared to the volatility seen in revenues, although a gradual upward trend was observed. Assets grew from US$ 48,073 million in 2012 to US$ 58,720 million in 2019. This incremental increase in the asset base, occurring simultaneously with falling revenues, compounded the downward pressure on the turnover ratio.
- Turnover Ratio Trends
- The turnover ratio exhibited a steady decline from 2012 through 2014, followed by a sharp deterioration in 2015 to 2.04 and a trough in 2016 at 1.63. A marginal recovery was noted in 2017 and 2018, where the ratio reached 2.05, before declining again to 1.83 in 2019. The pattern indicates that revenue generation failed to keep pace with asset growth, leading to diminished operational efficiency over the eight-year period.
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Comparison to Competitors
Phillips 66, total asset turnover, long-term trends, comparison to competitors
| Phillips 66 | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2019 | 1.83 | 0.59 | 0.46 | 0.70 |
| Dec 31, 2018 | 2.05 | 0.63 | 0.52 | 0.81 |
| Dec 31, 2017 | 1.88 | 0.53 | 0.40 | 0.68 |
| Dec 31, 2016 | 1.63 | 0.42 | 0.26 | 0.66 |
| Dec 31, 2015 | 2.04 | 0.49 | 0.30 | 0.77 |
| Dec 31, 2014 | 3.31 | 0.75 | 0.45 | 1.13 |
| Dec 31, 2013 | 3.45 | 0.87 | 0.46 | 1.21 |
| Dec 31, 2012 | 3.73 | 0.99 | 0.49 | 1.36 |
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, total asset turnover, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Phillips 66 | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2019 | 1.83 | 0.64 |
| Dec 31, 2018 | 2.05 | 0.71 |
| Dec 31, 2017 | 1.88 | 0.59 |
| Dec 31, 2016 | 1.63 | 0.52 |
| Dec 31, 2015 | 2.04 | 0.60 |
| Dec 31, 2014 | 3.31 | 0.88 |
| Dec 31, 2013 | 3.45 | 0.97 |
| Dec 31, 2012 | 3.73 | 1.08 |
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, total asset turnover, long-term trends, comparison to industry (energy)
| Phillips 66 | Energy | |
|---|---|---|
| Dec 31, 2019 | 1.83 | 0.63 |
| Dec 31, 2018 | 2.05 | 0.69 |
| Dec 31, 2017 | 1.88 | 0.58 |
| Dec 31, 2016 | 1.63 | 0.50 |
| Dec 31, 2015 | 2.04 | 0.59 |
| Dec 31, 2014 | 3.31 | 0.87 |
| Dec 31, 2013 | 3.45 | 0.94 |
| Dec 31, 2012 | 3.73 | 1.05 |
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).