Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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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- Income Statement
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Earnings (P/E) since 2012
- Price to Sales (P/S) since 2012
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Phillips 66, long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
The financial ratios reflect varying trends over the analyzed periods, offering insights into asset utilization and equity efficiency.
- Net Fixed Asset Turnover
- This ratio exhibits a general downward trend from March 2016 (4.66) to December 2016 (4.04), indicating declining efficiency in generating sales from fixed assets during that period. However, from early 2017 through the end of 2018, a phase of recovery and improvement is evident, peaking at 5.18 in September 2018. Subsequently, values gradually decrease again through 2019, settling at 4.51 by December 2019. The pattern suggests fluctuating effectiveness in fixed asset utilization with a notable mid-period improvement followed by a moderate decline.
- Total Asset Turnover
- Total asset turnover shows an initial decline between March 2016 (1.94) and December 2016 (1.63). From March 2017 onwards, a consistent upward movement culminates around December 2018 (2.05), reflecting better overall asset efficiency in generating revenues. Nonetheless, a slight decline occurs in 2019, finishing at 1.83, which implies a modest reduction in asset productivity during that final year.
- Equity Turnover
- The equity turnover ratio decreases in the first three quarters of 2016, reaching a low of 3.61 in September 2016. It recovers during late 2016 and through part of 2017, peaking at 4.26 in September 2017. Thereafter, the ratio maintains a generally stable yet slightly declining trend, with a minor peak at 4.81 in September 2018. The ratio drops toward the end of 2018 and throughout 2019, concluding near 4.31 in December 2019. This trend indicates a diminishing frequency in the use of equity to generate revenue in the latter years, following periods of improvement.
Net Fixed Asset Turnover
Phillips 66, net fixed asset turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Net fixed asset turnover
= (Sales and other operating revenuesQ4 2019
+ Sales and other operating revenuesQ3 2019
+ Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019)
÷ Net properties, plants and equipment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends in the company's operational and asset management performance over the observed quarters.
- Sales and Other Operating Revenues
- Sales and other operating revenues show a fluctuating but generally increasing pattern between March 2016 and December 2019. After an initial rise from 17,409 million USD in March 2016 to a peak of 29,746 million USD in December 2017, there is a noted decline in early 2018, followed by recovery and some volatility. The revenues dropped again in the first quarter of 2019 but improved over the subsequent quarters, ending at 29,125 million USD in December 2019. This indicates cyclical impacts possibly related to market conditions, with resilience in revenue recovery towards the end of the period.
- Net Properties, Plants, and Equipment (PPE)
- The net value of properties, plants, and equipment steadily increased throughout the reporting periods. Beginning at 20,075 million USD in March 2016, the asset base grew consistently, reaching 23,786 million USD by December 2019. This steady asset growth suggests ongoing investments or capital expenditures maintaining or expanding the company's operational capacity.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures the efficiency of the company in utilizing its fixed assets to generate sales, declined from 4.66 in March 2016 to a low of 4.04 by December 2016. However, from early 2017, the ratio recovered and peaked at 5.18 in September 2018, reflecting improved asset utilization during this period of increasing sales. After this peak, the ratio gradually decreased again towards the end of 2019, finishing at 4.51. This pattern indicates fluctuations in operational efficiency relative to the asset base, with periods of strong performance followed by some deceleration.
Overall, the data depicts growth in the asset base coupled with variable sales performance and fluctuating efficiency in asset usage. The company's ability to increase revenues while expanding fixed assets points to strategic capacity development, though the downward trend in asset turnover towards the end warrants attention to operational effectiveness and capital deployment strategies going forward.
Total Asset Turnover
Phillips 66, total asset turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Total asset turnover
= (Sales and other operating revenuesQ4 2019
+ Sales and other operating revenuesQ3 2019
+ Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales and other operating revenues demonstrated cyclical fluctuations with an overall increasing trend from the first quarter of 2016 through the end of 2017, reaching a peak of 29,746 million US dollars in December 2017. Following this peak period, the revenues showed some volatility but remained relatively high between 23,103 million and 29,188 million US dollars through 2018 and 2019. The data suggests seasonal or quarterly variability as revenues tend to rise toward the end of each year.
- Total Assets
- Total assets displayed a moderate upward trend across the quarters analyzed. Starting at 48,246 million US dollars in the first quarter of 2016, assets gradually increased with small quarter-to-quarter variations, reaching the highest point of 58,741 million US dollars in September 2019. Despite minor dips at certain points, the overall asset base consistently grew, suggesting ongoing investment or accumulation of asset base by the company over the period.
- Total Asset Turnover
- The total asset turnover ratio exhibited some noticeable changes over the reported periods. Beginning at a high of 1.94 in the first quarter of 2016, the ratio declined steadily to a low of 1.63 by the last quarter of 2016, indicating reduced efficiency in asset utilization during that year. However, from 2017 onward, the ratio improved, reaching a peak of 2.05 in the fourth quarter of 2018, thereby suggesting increased efficiency in generating sales from assets. During 2019, the ratio saw a slight decline, stabilizing around 1.83, which still represents a strong turnover relative to prior years. The fluctuations point to variations in operational efficiency, possibly influenced by changes in sales and asset composition.
- Summary
- Overall, the company showed growth in asset base and sales revenue over the four-year period, accompanied by varying efficiency in asset utilization as reflected in the total asset turnover ratio. Revenue trends indicate seasonal patterns with peaks in late quarters each year, while asset growth appears steady. The improvement in asset turnover after 2016 suggests the company enhanced its operational efficiency for a period before experiencing a moderate decline in 2019. These patterns suggest the company managed to increase scale while maintaining relatively strong operational performance.
Equity Turnover
Phillips 66, equity turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Equity turnover
= (Sales and other operating revenuesQ4 2019
+ Sales and other operating revenuesQ3 2019
+ Sales and other operating revenuesQ2 2019
+ Sales and other operating revenuesQ1 2019)
÷ Stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales and other operating revenues exhibited an overall upward trend from the first quarter of 2016 to the final quarter of 2019. Starting at approximately $17.4 billion in March 2016, revenues increased sharply to nearly $29.7 billion by December 2017. This growth was marked by consistent quarter-over-quarter improvement, with the most notable surge occurring in the latter half of 2017. Although some fluctuation was observed throughout 2018 and 2019, revenues remained elevated relative to the earlier periods, consistently ranging between $23 billion and $29 billion. These figures suggest strong sales performance with occasional variability likely influenced by external market conditions or operational factors.
- Stockholders' Equity
- Stockholders' equity remained relatively stable over the analyzed period, fluctuating modestly around the $22 billion to $25 billion range. Initial levels hovered near $22.8 billion in early 2016 and showed marginal variations through 2017, concluding the year at just over $25 billion. The equity values dipped somewhat in the first quarter of 2018 to about $21.9 billion but demonstrated a steady recovery in subsequent quarters, ending 2019 around $24.9 billion. The stability of equity suggests consistent capital management and retention of earnings without major dilution or significant capital injections.
- Equity Turnover Ratio
- The equity turnover ratio displayed fluctuations throughout the period but generally maintained a level between approximately 3.6 and 4.8. Starting at 4.11 in March 2016, it declined gradually to a low near 3.6 by September 2016, then recovered to a peak around 4.26 by late 2017. In 2018, the ratio reached its highest values, peaking at about 4.81 in the third quarter before a slight decline. The trend in equity turnover suggests changes in asset utilization efficiency and sales generation relative to equity. Higher turnover ratios in the latter period indicate improved efficiency in using shareholder equity to generate revenue, although some moderation toward the end of 2019 was observed.
- Overall Analysis
- The data reflect a period of strong revenue growth accompanied by relatively stable equity levels. The increase in sales outpaced changes in stockholders' equity, improving the equity turnover ratio and implying enhanced operational efficiency. Despite minor seasonal and quarterly fluctuations, the company maintained robust financial performance, with consistent revenue expansion and stable equity base indicative of effective financial management. The observed trends suggest a capacity to leverage equity effectively to support increased sales activities.