Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
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Long-term Activity Ratios (Summary)
Phillips 66, long-term (investment) activity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
The financial data demonstrates variations in turnover ratios over the five-year period ending in 2019.
- Net Fixed Asset Turnover
- This ratio initially declined from 5.02 in 2015 to 4.04 in 2016, indicating reduced efficiency in generating revenue from net fixed assets during that year. It then improved in 2017 to 4.77 and peaked slightly above the 2015 level at 5.06 in 2018. However, by 2019, the ratio decreased again to 4.51, suggesting a modest decline in asset utilization efficiency toward the end of the period.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- The pattern here closely follows that of the net fixed asset turnover, with the same starting values and trends through 2018. The 2019 figure, at 4.27, is marginally lower compared to the net fixed asset turnover alone, reflecting the impact of including leased assets in the calculation. This suggests that the incorporation of operating lease assets may slightly reduce the reported turnover efficiency.
- Total Asset Turnover
- This ratio indicates a decrease from 2.04 in 2015 to 1.63 in 2016, showing a significant drop in total asset utilization. There was a gradual recovery to 1.88 in 2017 and an improvement to 2.05 in 2018, slightly surpassing the initial 2015 level. However, the ratio declined again to 1.83 in 2019, implying some volatility in the company's ability to generate sales from total assets.
- Equity Turnover
- Equity turnover declined from 4.28 in 2015 to 3.76 in 2016, aligning with the decreases observed in other turnover ratios during that year. From 2017 onwards, the ratio showed a steady improvement each year, reaching 4.52 by 2018. In 2019, there was a slight decline to 4.31, though the figure remained higher than the 2015 level. The consistent improvement after 2016 suggests enhanced efficiency in using shareholders' equity to generate revenue.
Net Fixed Asset Turnover
Phillips 66, net fixed asset turnover 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) | ||||||
| Sales and other operating revenues | ||||||
| Net properties, plants and equipment | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
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
Net fixed asset turnover = Sales and other operating revenues ÷ Net properties, plants and equipment
= ÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales and other operating revenues exhibit a fluctuating trend over the five-year period. Starting at $98,975 million in 2015, the revenues declined to $84,279 million in 2016. Subsequently, there was a recovery and growth in 2017 and 2018, reaching a peak of $111,461 million in 2018, before slightly decreasing to $107,293 million in 2019. This pattern suggests some volatility in revenue generation, with a notable rebound after the initial drop in 2016.
- Net Properties, Plants and Equipment
- The net properties, plants and equipment show a consistent upward trend throughout the period. The value increased from $19,721 million in 2015 to $23,786 million in 2019. This steady growth indicates ongoing investment and expansion in fixed assets, supporting the company’s operational capacity and long-term asset base.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates variability over the years. It started at 5.02 in 2015 and dropped significantly to 4.04 in 2016, coinciding with the decrease in revenues observed that year. In 2017 and 2018, the ratio recovered to 4.77 and 5.06 respectively, suggesting improved efficiency in using fixed assets to generate sales. However, the ratio declined again to 4.51 in 2019. This fluctuation may reflect changes in sales relative to the asset base and indicates some inconsistency in asset utilization efficiency.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Phillips 66, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Net properties, plants and equipment | ||||||
| Operating lease right-of-use assets, (included in Other assets) | ||||||
| Net properties, plants and equipment (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales and other operating revenues ÷ Net properties, plants and equipment (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals several key trends and insights. Sales and other operating revenues demonstrate variability, with a notable dip in 2016 followed by an upward trend peaking in 2018 before a slight decline in 2019. The net properties, plants, and equipment show a consistent increase each year, indicating ongoing investment in fixed assets.
- Sales and Other Operating Revenues
- The sales figures start at 98,975 million US dollars in 2015, decrease to 84,279 million in 2016, then recover and increase substantially to 102,354 million in 2017, further rising to 111,461 million in 2018. In 2019, there is a marginal decline to 107,293 million. This pattern suggests a challenging year in 2016, followed by strong revenue growth before a slight contraction at the end of the period.
- Net Properties, Plants and Equipment
- There is a steady upward trajectory in the net properties, plants, and equipment asset base, starting at 19,721 million US dollars in 2015 and growing consistently to reach 25,098 million by 2019. This progression indicates sustained capital expenditure or asset acquisition, supporting company expansion or maintenance efforts.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio fluctuates over the period. It starts at a relatively high level of 5.02 in 2015, decreases sharply to 4.04 in 2016, then recovers to 4.77 in 2017 and 5.06 in 2018, before declining again to 4.27 in 2019. This ratio’s movements reflect changes in revenue generation efficiency relative to the fixed asset base. The initial decline in 2016 corresponds with reduced sales and increased assets, while the subsequent recovery indicates improved asset utilization. The final decline in 2019 suggests lower revenue efficiency despite higher asset levels.
Total Asset Turnover
Phillips 66, total asset turnover 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) | ||||||
| Sales and other operating revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
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
Total asset turnover = Sales and other operating revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Sales and other operating revenues
- The sales and other operating revenues showed volatility over the period. Starting at $98,975 million in 2015, revenues decreased significantly to $84,279 million in 2016. This was followed by a recovery in 2017, with revenues rising to $102,354 million, and continued growth in 2018 to a peak of $111,461 million. However, in 2019, revenues declined slightly to $107,293 million, indicating some instability in revenue generation over the observed years.
- Total assets
- Total assets exhibited a consistent upward trend throughout the period. Beginning at $48,580 million in 2015, assets increased steadily each year, reaching $58,720 million in 2019. This growth suggests ongoing investment and asset accumulation, which may support future operational capacity and revenue growth.
- Total asset turnover
- The total asset turnover ratio, which measures efficiency in utilizing assets to generate sales, demonstrated fluctuations during the period. The ratio started at 2.04 in 2015, decreased notably in 2016 to 1.63, then improved to 1.88 in 2017. It peaked again at 2.05 in 2018 before declining to 1.83 in 2019. These changes indicate variations in operational efficiency, with the ratio not maintaining a steady upward or downward trajectory but reflecting cycles of improved and reduced asset utilization effectiveness.
Equity Turnover
Phillips 66, equity turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
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
Equity turnover = Sales and other operating revenues ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales and other operating revenues demonstrate a fluctuating trend over the five-year period. There was a noticeable decline from 98,975 million US dollars in 2015 to 84,279 million in 2016. This was followed by an increase in 2017 and 2018, reaching a peak of 111,461 million US dollars. However, in 2019, revenues experienced a slight decrease to 107,293 million US dollars, indicating some volatility in sales performance.
- Stockholders’ Equity
- Stockholders’ equity shows relative stability throughout the period, with minor fluctuations. Starting at 23,100 million US dollars in 2015, it slightly decreased to 22,390 million in 2016. Subsequently, there was an increase reaching 25,085 million in 2017, followed by a slight dip in 2018 to 24,653 million and a modest rise again in 2019 to 24,910 million US dollars. This indicates a general maintenance of equity levels with moderate changes year over year.
- Equity Turnover Ratio
- The equity turnover ratio exhibits variability that corresponds with the changes in sales and equity. The ratio decreased from 4.28 in 2015 to 3.76 in 2016, reflecting lower sales relative to equity. It then increased to 4.08 in 2017 and further to 4.52 in 2018, suggesting more efficient use of equity in generating sales. In 2019, the ratio slightly declined to 4.31, continuing a pattern of fluctuation but remaining above the levels observed in 2015 and 2016. This suggests moderate improvements in asset utilization over the period.