Microsoft Excel LibreOffice Calc

Phillips 66 (PSX)

Analysis of Solvency Ratios

Beginner level

Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Solvency Ratios (Summary)

Phillips 66, solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Debt Ratios
Debt to equity 0.45 0.40 0.45 0.38 0.40
Debt to capital 0.31 0.29 0.31 0.28 0.29
Debt to assets 0.21 0.19 0.20 0.18 0.18
Financial leverage 2.20 2.17 2.31 2.10 2.26
Coverage Ratios
Interest coverage 15.77 9.12 7.48 20.50 22.52
Fixed charge coverage 7.35 4.18 3.18 7.36 7.86

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-20).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Phillips 66’s debt to equity ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Phillips 66’s debt to capital ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Phillips 66’s debt to assets ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Phillips 66’s financial leverage ratio decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.
Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Phillips 66’s interest coverage ratio improved from 2016 to 2017 and from 2017 to 2018.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Phillips 66’s fixed charge coverage ratio improved from 2016 to 2017 and from 2017 to 2018.

Debt to Equity

Phillips 66, debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Short-term debt 67  41  550  44  842 
Long-term debt 11,093  10,069  9,588  8,843  7,842 
Total debt 11,160  10,110  10,138  8,887  8,684 
 
Stockholders’ equity 24,653  25,085  22,390  23,100  21,590 
Solvency Ratio
Debt to equity1 0.45 0.40 0.45 0.38 0.40
Benchmarks
Debt to Equity, Competitors2
Chevron Corp. 0.22 0.26 0.32 0.25 0.18
ConocoPhillips 0.47 0.64 0.78 0.63 0.43
EOG Resources Inc. 0.31 0.39 0.50 0.51 0.33
Exxon Mobil Corp. 0.20 0.23 0.26 0.23 0.17
Occidental Petroleum Corp. 0.48 0.48 0.46 0.34 0.20
Debt to Equity, Sector
Oil & Gas Producers 0.26 0.30 0.35 0.30 0.22
Debt to Equity, Industry
Oil & Gas 0.33 0.37 0.42 0.38 0.30

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 11,160 ÷ 24,653 = 0.45

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Phillips 66’s debt to equity ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Debt to Capital

Phillips 66, debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Short-term debt 67  41  550  44  842 
Long-term debt 11,093  10,069  9,588  8,843  7,842 
Total debt 11,160  10,110  10,138  8,887  8,684 
Stockholders’ equity 24,653  25,085  22,390  23,100  21,590 
Total capital 35,813  35,195  32,528  31,987  30,274 
Solvency Ratio
Debt to capital1 0.31 0.29 0.31 0.28 0.29
Benchmarks
Debt to Capital, Competitors2
Chevron Corp. 0.18 0.21 0.24 0.20 0.15
ConocoPhillips 0.32 0.39 0.44 0.38 0.30
EOG Resources Inc. 0.24 0.28 0.33 0.34 0.25
Exxon Mobil Corp. 0.16 0.18 0.20 0.18 0.14
Occidental Petroleum Corp. 0.33 0.32 0.31 0.25 0.16
Debt to Capital, Sector
Oil & Gas Producers 0.21 0.23 0.26 0.23 0.18
Debt to Capital, Industry
Oil & Gas 0.25 0.27 0.30 0.28 0.23

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 11,160 ÷ 35,813 = 0.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Phillips 66’s debt to capital ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Debt to Assets

Phillips 66, debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Short-term debt 67  41  550  44  842 
Long-term debt 11,093  10,069  9,588  8,843  7,842 
Total debt 11,160  10,110  10,138  8,887  8,684 
 
Total assets 54,302  54,371  51,653  48,580  48,741 
Solvency Ratio
Debt to assets1 0.21 0.19 0.20 0.18 0.18
Benchmarks
Debt to Assets, Competitors2
Chevron Corp. 0.14 0.15 0.18 0.15 0.10
ConocoPhillips 0.21 0.27 0.30 0.26 0.19
EOG Resources Inc. 0.18 0.21 0.24 0.25 0.17
Exxon Mobil Corp. 0.11 0.12 0.13 0.11 0.08
Occidental Petroleum Corp. 0.24 0.23 0.23 0.19 0.12
Debt to Assets, Sector
Oil & Gas Producers 0.14 0.16 0.18 0.15 0.12
Debt to Assets, Industry
Oil & Gas 0.18 0.19 0.21 0.19 0.15

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 11,160 ÷ 54,302 = 0.21

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Phillips 66’s debt to assets ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Financial Leverage

Phillips 66, financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Total assets 54,302  54,371  51,653  48,580  48,741 
Stockholders’ equity 24,653  25,085  22,390  23,100  21,590 
Solvency Ratio
Financial leverage1 2.20 2.17 2.31 2.10 2.26
Benchmarks
Financial Leverage, Competitors2
Chevron Corp. 1.64 1.71 1.79 1.74 1.72
ConocoPhillips 2.19 2.40 2.57 2.45 2.24
EOG Resources Inc. 1.75 1.83 2.11 2.08 1.96
Exxon Mobil Corp. 1.81 1.86 1.97 1.97 2.00
Occidental Petroleum Corp. 2.06 2.04 2.01 1.78 1.61
Financial Leverage, Sector
Oil & Gas Producers 1.81 1.87 1.98 1.93 1.91
Financial Leverage, Industry
Oil & Gas 1.85 1.91 2.00 1.96 1.94

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 54,302 ÷ 24,653 = 2.20

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Phillips 66’s financial leverage ratio decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.

Interest Coverage

Phillips 66, interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Net income attributable to Phillips 66 5,595  5,106  1,555  4,227  4,762 
Add: Net income attributable to noncontrolling interest 278  142  89  53  35 
Less: Income from discontinued operations, net of provision for income taxes —  —  —  —  706 
Add: Income tax expense 1,572  (1,693) 547  1,764  1,654 
Add: Interest and debt expense 504  438  338  310  267 
Earnings before interest and tax (EBIT) 7,949  3,993  2,529  6,354  6,012 
Solvency Ratio
Interest coverage1 15.77 9.12 7.48 20.50 22.52
Benchmarks
Interest Coverage, Competitors2
Chevron Corp. 28.51 31.04 -9.75 — —
ConocoPhillips 14.57 -1.38 -3.44 -6.87 15.49
EOG Resources Inc. 18.31 3.41 -4.53 -28.16 25.80
Exxon Mobil Corp. 41.41 32.07 18.59 71.63 181.52
Occidental Petroleum Corp. 15.42 4.85 -4.70 -63.46 21.19
Interest Coverage, Sector
Oil & Gas Producers 24.26 11.06 0.73 5.79 71.65
Interest Coverage, Industry
Oil & Gas 15.28 6.82 0.80 3.98 32.61

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Interest coverage = EBIT ÷ Interest expense
= 7,949 ÷ 504 = 15.77

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Phillips 66’s interest coverage ratio improved from 2016 to 2017 and from 2017 to 2018.

Fixed Charge Coverage

Phillips 66, fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Net income attributable to Phillips 66 5,595  5,106  1,555  4,227  4,762 
Add: Net income attributable to noncontrolling interest 278  142  89  53  35 
Less: Income from discontinued operations, net of provision for income taxes —  —  —  —  706 
Add: Income tax expense 1,572  (1,693) 547  1,764  1,654 
Add: Interest and debt expense 504  438  338  310  267 
Earnings before interest and tax (EBIT) 7,949  3,993  2,529  6,354  6,012 
Add: Operating lease rental expense 669  680  669  641  570 
Earnings before fixed charges and tax 8,618  4,673  3,198  6,995  6,582 
 
Interest and debt expense 504  438  338  310  267 
Operating lease rental expense 669  680  669  641  570 
Fixed charges 1,173  1,118  1,007  951  837 
Solvency Ratio
Fixed charge coverage1 7.35 4.18 3.18 7.36 7.86
Benchmarks
Fixed Charge Coverage, Competitors2
Chevron Corp. 14.12 9.93 -0.89 5.65 29.89
ConocoPhillips 11.09 -0.92 -2.10 -4.35 9.37
EOG Resources Inc. 9.87 2.39 -2.21 -13.84 12.39
Exxon Mobil Corp. 9.89 6.80 3.25 6.13 12.83
Occidental Petroleum Corp. 10.94 3.13 -2.15 -26.55 7.59
Fixed Charge Coverage, Sector
Oil & Gas Producers 10.55 4.94 0.91 2.09 13.94
Fixed Charge Coverage, Industry
Oil & Gas 8.57 3.99 0.89 2.17 12.13

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-20).

1 2018 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,618 ÷ 1,173 = 7.35

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Phillips 66’s fixed charge coverage ratio improved from 2016 to 2017 and from 2017 to 2018.