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
Based on: 10-K (filing date: 2020-02-21), 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).
| 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 deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Phillips 66’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| 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 deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Phillips 66’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Phillips 66’s debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Phillips 66’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Phillips 66’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019. |
| 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 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| 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 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Debt to Equity
Phillips 66, debt to equity 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) | ||||||
| Short-term debt | 547 | 67 | 41 | 550 | 44 | |
| Long-term debt | 11,216 | 11,093 | 10,069 | 9,588 | 8,843 | |
| Total debt | 11,763 | 11,160 | 10,110 | 10,138 | 8,887 | |
| Stockholders’ equity | 24,910 | 24,653 | 25,085 | 22,390 | 23,100 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.47 | 0.45 | 0.40 | 0.45 | 0.38 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | 0.19 | 0.22 | 0.26 | 0.32 | 0.25 | |
| ConocoPhillips | 0.43 | 0.47 | 0.64 | 0.78 | 0.63 | |
| Exxon Mobil Corp. | 0.24 | 0.20 | 0.23 | 0.26 | 0.23 | |
| Debt to Equity, Sector | ||||||
| Oil & Gas Producers | 0.24 | 0.23 | 0.28 | 0.33 | 0.28 | |
Based on: 10-K (filing date: 2020-02-21), 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).
1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 11,763 ÷ 24,910 = 0.47
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 deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity (including Operating Lease Liability)
Phillips 66, debt to equity (including operating lease liability) 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) | ||||||
| Short-term debt | 547 | 67 | 41 | 550 | 44 | |
| Long-term debt | 11,216 | 11,093 | 10,069 | 9,588 | 8,843 | |
| Total debt | 11,763 | 11,160 | 10,110 | 10,138 | 8,887 | |
| Operating lease liabilities (included in Other accruals) | 455 | — | — | — | — | |
| Operating lease liabilities (included in Other liabilities and deferred credits) | 806 | — | — | — | — | |
| Total debt (including operating lease liability) | 13,024 | 11,160 | 10,110 | 10,138 | 8,887 | |
| Stockholders’ equity | 24,910 | 24,653 | 25,085 | 22,390 | 23,100 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.52 | 0.45 | 0.40 | 0.45 | 0.38 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.21 | 0.22 | 0.26 | 0.32 | 0.25 | |
| ConocoPhillips | 0.45 | 0.47 | 0.64 | 0.78 | 0.63 | |
| Exxon Mobil Corp. | 0.27 | 0.20 | 0.23 | 0.26 | 0.23 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Oil & Gas Producers | 0.27 | 0.23 | 0.28 | 0.33 | 0.28 | |
Based on: 10-K (filing date: 2020-02-21), 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).
1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 13,024 ÷ 24,910 = 0.52
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Phillips 66’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Capital
Phillips 66, debt to capital 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) | ||||||
| Short-term debt | 547 | 67 | 41 | 550 | 44 | |
| Long-term debt | 11,216 | 11,093 | 10,069 | 9,588 | 8,843 | |
| Total debt | 11,763 | 11,160 | 10,110 | 10,138 | 8,887 | |
| Stockholders’ equity | 24,910 | 24,653 | 25,085 | 22,390 | 23,100 | |
| Total capital | 36,673 | 35,813 | 35,195 | 32,528 | 31,987 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.32 | 0.31 | 0.29 | 0.31 | 0.28 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | 0.16 | 0.18 | 0.21 | 0.24 | 0.20 | |
| ConocoPhillips | 0.30 | 0.32 | 0.39 | 0.44 | 0.38 | |
| Exxon Mobil Corp. | 0.20 | 0.16 | 0.18 | 0.20 | 0.18 | |
| Debt to Capital, Sector | ||||||
| Oil & Gas Producers | 0.19 | 0.19 | 0.22 | 0.25 | 0.22 | |
Based on: 10-K (filing date: 2020-02-21), 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).
1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 11,763 ÷ 36,673 = 0.32
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 deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Capital (including Operating Lease Liability)
Phillips 66, debt to capital (including operating lease liability) 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) | ||||||
| Short-term debt | 547 | 67 | 41 | 550 | 44 | |
| Long-term debt | 11,216 | 11,093 | 10,069 | 9,588 | 8,843 | |
| Total debt | 11,763 | 11,160 | 10,110 | 10,138 | 8,887 | |
| Operating lease liabilities (included in Other accruals) | 455 | — | — | — | — | |
| Operating lease liabilities (included in Other liabilities and deferred credits) | 806 | — | — | — | — | |
| Total debt (including operating lease liability) | 13,024 | 11,160 | 10,110 | 10,138 | 8,887 | |
| Stockholders’ equity | 24,910 | 24,653 | 25,085 | 22,390 | 23,100 | |
| Total capital (including operating lease liability) | 37,934 | 35,813 | 35,195 | 32,528 | 31,987 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.34 | 0.31 | 0.29 | 0.31 | 0.28 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.18 | 0.18 | 0.21 | 0.24 | 0.20 | |
| ConocoPhillips | 0.31 | 0.32 | 0.39 | 0.44 | 0.38 | |
| Exxon Mobil Corp. | 0.22 | 0.16 | 0.18 | 0.20 | 0.18 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Oil & Gas Producers | 0.21 | 0.19 | 0.22 | 0.25 | 0.22 | |
Based on: 10-K (filing date: 2020-02-21), 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).
1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,024 ÷ 37,934 = 0.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Phillips 66’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Assets
Phillips 66, debt to assets 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) | ||||||
| Short-term debt | 547 | 67 | 41 | 550 | 44 | |
| Long-term debt | 11,216 | 11,093 | 10,069 | 9,588 | 8,843 | |
| Total debt | 11,763 | 11,160 | 10,110 | 10,138 | 8,887 | |
| Total assets | 58,720 | 54,302 | 54,371 | 51,653 | 48,580 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.20 | 0.21 | 0.19 | 0.20 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | 0.11 | 0.14 | 0.15 | 0.18 | 0.15 | |
| ConocoPhillips | 0.21 | 0.21 | 0.27 | 0.30 | 0.26 | |
| Exxon Mobil Corp. | 0.13 | 0.11 | 0.12 | 0.13 | 0.11 | |
| Debt to Assets, Sector | ||||||
| Oil & Gas Producers | 0.13 | 0.13 | 0.15 | 0.17 | 0.15 | |
Based on: 10-K (filing date: 2020-02-21), 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).
1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 11,763 ÷ 58,720 = 0.20
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 deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Assets (including Operating Lease Liability)
Phillips 66, debt to assets (including operating lease liability) 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) | ||||||
| Short-term debt | 547 | 67 | 41 | 550 | 44 | |
| Long-term debt | 11,216 | 11,093 | 10,069 | 9,588 | 8,843 | |
| Total debt | 11,763 | 11,160 | 10,110 | 10,138 | 8,887 | |
| Operating lease liabilities (included in Other accruals) | 455 | — | — | — | — | |
| Operating lease liabilities (included in Other liabilities and deferred credits) | 806 | — | — | — | — | |
| Total debt (including operating lease liability) | 13,024 | 11,160 | 10,110 | 10,138 | 8,887 | |
| Total assets | 58,720 | 54,302 | 54,371 | 51,653 | 48,580 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.22 | 0.21 | 0.19 | 0.20 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.13 | 0.14 | 0.15 | 0.18 | 0.15 | |
| ConocoPhillips | 0.22 | 0.21 | 0.27 | 0.30 | 0.26 | |
| Exxon Mobil Corp. | 0.15 | 0.11 | 0.12 | 0.13 | 0.11 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Oil & Gas Producers | 0.15 | 0.13 | 0.15 | 0.17 | 0.15 | |
Based on: 10-K (filing date: 2020-02-21), 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).
1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,024 ÷ 58,720 = 0.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Phillips 66’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Financial Leverage
Phillips 66, financial leverage 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) | ||||||
| Total assets | 58,720 | 54,302 | 54,371 | 51,653 | 48,580 | |
| Stockholders’ equity | 24,910 | 24,653 | 25,085 | 22,390 | 23,100 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.36 | 2.20 | 2.17 | 2.31 | 2.10 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | 1.65 | 1.64 | 1.71 | 1.79 | 1.74 | |
| ConocoPhillips | 2.02 | 2.19 | 2.40 | 2.57 | 2.45 | |
| Exxon Mobil Corp. | 1.89 | 1.81 | 1.86 | 1.97 | 1.97 | |
| Financial Leverage, Sector | ||||||
| Oil & Gas Producers | 1.81 | 1.77 | 1.84 | 1.96 | 1.93 | |
Based on: 10-K (filing date: 2020-02-21), 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).
1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 58,720 ÷ 24,910 = 2.36
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 increased from 2017 to 2018 and from 2018 to 2019. |
Interest Coverage
Phillips 66, interest coverage 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) | ||||||
| Net income attributable to Phillips 66 | 3,076 | 5,595 | 5,106 | 1,555 | 4,227 | |
| Add: Net income attributable to noncontrolling interest | 301 | 278 | 142 | 89 | 53 | |
| Add: Income tax expense | 801 | 1,572 | (1,693) | 547 | 1,764 | |
| Add: Interest and debt expense | 458 | 504 | 438 | 338 | 310 | |
| Earnings before interest and tax (EBIT) | 4,636 | 7,949 | 3,993 | 2,529 | 6,354 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 10.12 | 15.77 | 9.12 | 7.48 | 20.50 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | 7.94 | 28.51 | 31.04 | -9.75 | — | |
| ConocoPhillips | 13.24 | 14.57 | -1.38 | -3.44 | -6.87 | |
| Exxon Mobil Corp. | 25.16 | 41.41 | 32.07 | 18.59 | 71.63 | |
| Interest Coverage, Sector | ||||||
| Oil & Gas Producers | 15.60 | 28.35 | 13.60 | 1.15 | 16.90 | |
Based on: 10-K (filing date: 2020-02-21), 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).
1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,636 ÷ 458 = 10.12
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 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Fixed Charge Coverage
Phillips 66, fixed charge coverage 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) | ||||||
| Net income attributable to Phillips 66 | 3,076 | 5,595 | 5,106 | 1,555 | 4,227 | |
| Add: Net income attributable to noncontrolling interest | 301 | 278 | 142 | 89 | 53 | |
| Add: Income tax expense | 801 | 1,572 | (1,693) | 547 | 1,764 | |
| Add: Interest and debt expense | 458 | 504 | 438 | 338 | 310 | |
| Earnings before interest and tax (EBIT) | 4,636 | 7,949 | 3,993 | 2,529 | 6,354 | |
| Add: Operating lease cost | 531 | 669 | 680 | 669 | 641 | |
| Earnings before fixed charges and tax | 5,167 | 8,618 | 4,673 | 3,198 | 6,995 | |
| Interest and debt expense | 458 | 504 | 438 | 338 | 310 | |
| Operating lease cost | 531 | 669 | 680 | 669 | 641 | |
| Fixed charges | 989 | 1,173 | 1,118 | 1,007 | 951 | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.22 | 7.35 | 4.18 | 3.18 | 7.36 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Chevron Corp. | 2.62 | 14.12 | 9.93 | -0.89 | 5.65 | |
| ConocoPhillips | 9.51 | 11.09 | -0.92 | -2.10 | -4.35 | |
| Exxon Mobil Corp. | 5.66 | 9.89 | 6.80 | 3.25 | 6.13 | |
| Fixed Charge Coverage, Sector | ||||||
| Oil & Gas Producers | 4.97 | 11.19 | 5.50 | 1.04 | 3.93 | |
Based on: 10-K (filing date: 2020-02-21), 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).
1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,167 ÷ 989 = 5.22
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 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |