Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Phillips 66, liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.24 | 1.48 | 1.42 | 1.34 | 1.63 | |
| Quick ratio | 0.87 | 1.03 | 1.05 | 0.96 | 1.10 | |
| Cash ratio | 0.14 | 0.34 | 0.31 | 0.29 | 0.41 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Phillips 66 current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Phillips 66 quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Phillips 66 cash ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Current Ratio
Phillips 66, current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 14,395) | 13,209) | 14,390) | 12,680) | 12,256) | |
| Current liabilities | 11,646) | 8,935) | 10,107) | 9,463) | 7,531) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.24 | 1.48 | 1.42 | 1.34 | 1.63 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Chevron Corp. | 1.07 | — | — | — | — | |
| ConocoPhillips | 2.40 | — | — | — | — | |
| Exxon Mobil Corp. | 0.78 | — | — | — | — | |
| Marathon Petroleum Corp. | 1.25 | — | — | — | — | |
| Occidental Petroleum Corp. | 1.25 | — | — | — | — | |
| Valero Energy Corp. | 1.44 | — | — | — | — | |
| Current Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.08 | — | — | — | — | |
| Current Ratio, Industry | ||||||
| Energy | 1.09 | — | — | — | — | |
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).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 14,395 ÷ 11,646 = 1.24
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Phillips 66 current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Quick Ratio
Phillips 66, quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 1,614) | 3,019) | 3,119) | 2,711) | 3,074) | |
| Accounts and notes receivable, net of allowances | 7,376) | 5,414) | 6,424) | 5,485) | 4,411) | |
| Accounts and notes receivable, related parties | 1,134) | 759) | 1,082) | 912) | 762) | |
| Total quick assets | 10,124) | 9,192) | 10,625) | 9,108) | 8,247) | |
| Current liabilities | 11,646) | 8,935) | 10,107) | 9,463) | 7,531) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.87 | 1.03 | 1.05 | 0.96 | 1.10 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.72 | — | — | — | — | |
| ConocoPhillips | 1.93 | — | — | — | — | |
| Exxon Mobil Corp. | 0.47 | — | — | — | — | |
| Marathon Petroleum Corp. | 0.58 | — | — | — | — | |
| Occidental Petroleum Corp. | 0.63 | — | — | — | — | |
| Valero Energy Corp. | 0.88 | — | — | — | — | |
| Quick Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.66 | — | — | — | — | |
| Quick Ratio, Industry | ||||||
| Energy | 0.67 | — | — | — | — | |
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).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 10,124 ÷ 11,646 = 0.87
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Phillips 66 quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
Phillips 66, cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 1,614) | 3,019) | 3,119) | 2,711) | 3,074) | |
| Total cash assets | 1,614) | 3,019) | 3,119) | 2,711) | 3,074) | |
| Current liabilities | 11,646) | 8,935) | 10,107) | 9,463) | 7,531) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.14 | 0.34 | 0.31 | 0.29 | 0.41 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Chevron Corp. | 0.22 | — | — | — | — | |
| ConocoPhillips | 1.45 | — | — | — | — | |
| Exxon Mobil Corp. | 0.05 | — | — | — | — | |
| Marathon Petroleum Corp. | 0.09 | — | — | — | — | |
| Occidental Petroleum Corp. | 0.20 | — | — | — | — | |
| Valero Energy Corp. | 0.20 | — | — | — | — | |
| Cash Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.18 | — | — | — | — | |
| Cash Ratio, Industry | ||||||
| Energy | 0.18 | — | — | — | — | |
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).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,614 ÷ 11,646 = 0.14
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Phillips 66 cash ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |