Phillips 66 (NYSE:PSX)

Income (loss) before income taxes

The income before income taxes exhibited a significant upward trend from 2015 to 2018, increasing from US$74 million in 2015 to a peak of US$1,181 million in 2018. This represents a substantial growth in profitability over this period. However, in 2019, there was a notable decline to US$684 million, indicating a decrease in pre-tax income after the prior years' gains.

Sales and other operating revenues

Sales and other operating revenues showed a consistent increase from 2015 to 2018, rising from US$3,676 million to US$8,293 million. This upward trajectory suggests expanding business activities or higher pricing during this period. In 2019, revenues decreased to US$7,103 million, reflecting a contraction compared to the previous year, although the value remained significantly above earlier years.

Segment profit margin

The segment profit margin demonstrated a marked improvement starting from 2.01% in 2015, climbing sharply to 9.54% in 2016, and maintaining a similar level in 2017 at 9.64%. In 2018, the margin further increased to a peak of 14.24%, indicating enhanced operational efficiency or favorable market conditions. Nonetheless, in 2019 the margin decreased to 9.63%, returning close to the levels seen in 2016 and 2017, but still substantially higher than the margin in 2015.

Overall Assessment

Across the observed periods, the segment showed strong growth in income before taxes and sales revenues until 2018, followed by a decline in 2019. The profit margin followed a similar trajectory, improving significantly through 2018 and then dropping in 2019 but maintaining a level well above the initial year. These patterns suggest that the segment experienced considerable expansion and improved profitability for most of the period, with some setbacks or normalization occurring in the final year observed.

Income (loss) before income taxes

The income before income taxes showed a fluctuating but overall declining trend from 2015 to 2019. Starting at 962 million US dollars in 2015, it decreased to 839 million in 2016 and further declined to 716 million in 2017. However, there was a notable recovery in 2018, with income rising to 1025 million, followed by a decrease to 879 million in 2019. This pattern indicates volatility with a peak in 2018 and a partial decline thereafter.

Sales and other operating revenues

The sales and other operating revenues remained relatively stable between 2015 and 2018, consistently recorded at 5 million US dollars each year. In 2019, there was a decrease to 3 million, indicating a potential reduction in revenue-generating activities or adjustments in accounting for this segment.

Segment profit margin

The segment profit margin experienced a downward trend from 2015 until 2017, declining from 19,240% in 2015 to 16,780% in 2016, and further to 14,320% in 2017. However, the margin sharply increased in 2018 to 20,500%, surpassing prior levels, and saw an even more substantial rise in 2019, reaching 29,300%. This indicates a significant improvement in segment profitability towards the end of the period.

The "Refining" segment demonstrates fluctuating financial performance over the five-year period from 2015 to 2019. The income before income taxes shows significant variability, starting at a high of 2,555 million USD in 2015, dropping sharply to 435 million USD in 2016, rebounding to 2,076 million USD in 2017, reaching a peak at 4,535 million USD in 2018, and then declining to 1,986 million USD in 2019. This indicates a volatile earnings pattern with a notable peak in 2018.

Sales and other operating revenues also exhibit considerable volatility. Revenues decreased from 63,470 million USD in 2015 to 52,068 million USD in 2016 before recovering to 65,494 million USD in 2017. After a substantial increase to 83,140 million USD in 2018, revenues decreased somewhat in 2019 to 76,792 million USD. The peak in 2018 aligns with the peak observed in income before taxes, suggesting a correlation between sales volume or pricing and profitability.

The segment profit margin trend reflects these fluctuations but shows a more pronounced variability. The margin began at 4.03% in 2015, dropped sharply to 0.84% in 2016, then improved to 3.17% in 2017. The highest margin was achieved in 2018 at 5.45%, indicating improved operational efficiency or favorable market conditions during that year. However, the margin contracted to 2.59% in 2019, consistent with the reduced income and sales revenue.

Income before income taxes

Shows a highly cyclical pattern, with a significant drop in 2016, recovery by 2017, peak in 2018, followed by a decline in 2019.

Sales and other operating revenues

Correlated with income trends, revenues experienced a decline in 2016, steady recovery through 2017 and 2018, and a moderate decline in 2019.

Segment profit margin

Displays considerable volatility, reflecting changes in profitability relative to revenue, with the lowest margin in 2016 and the highest in 2018 before declining in 2019.

Overall, the data indicate a business segment subject to notable fluctuations in both revenue and profitability, with 2018 representing an exceptionally strong year. The downward trend in 2019 across all metrics suggests either weaker market conditions or operational challenges compared to the previous peak year.

Income (loss) before income taxes

The income before income taxes experienced fluctuations over the five-year period. It started at 1,187 million US dollars at the end of 2015, increased to 1,261 million in 2016, then declined to 1,020 million in 2017. The figure rose notably in 2018 to 1,557 million, followed by a decrease to 1,433 million in 2019. Overall, the trend shows variability with a peak in 2018.

Sales and other operating revenues

Sales and other operating revenues showed variability during the period under review. Revenues declined from 74,591 million US dollars in 2015 to 64,476 million in 2016, then rebounded to 73,565 million in 2017. The amount remained relatively stable in 2018 and 2019, recorded at 73,414 million and 73,616 million respectively. Despite initial volatility, sales levels stabilized in the latter years.

Segment profit margin

The segment profit margin exhibited a fluctuating pattern across the five years. Starting at 1.59% in 2015, it increased to 1.96% in 2016, declined to 1.39% in 2017, then reached the highest point at 2.12% in 2018. In 2019, the margin slightly decreased to 1.95%. The margin demonstrates cyclical movements with a general trend of improvement from the lower values in 2017.

Income (loss) before income taxes

The income before income taxes demonstrates a general upward trend from 2015 to 2018, beginning at 74 million US dollars in 2015 and peaking at 1,181 million US dollars in 2018. However, this is followed by a notable decline to 684 million US dollars in 2019, indicating a potential decrease in profitability or earnings performance in the most recent year compared to the prior peak.

Total assets

Total assets consistently increased throughout the period, rising from 11,043 million US dollars in 2015 to 15,716 million US dollars in 2019. This steady growth suggests expansion in asset base, which could reflect investments in operations, acquisitions, or capital expenditures within the segment.

Segment Return on Assets (ROA)

The segment ROA exhibited a significant improvement over the first four years, moving from a low of 0.67% in 2015 up to 8.24% in 2018, indicating increasing efficiency in generating profit from its asset base. However, in 2019, the ROA declined to 4.35%, which, while still higher than the initial years, represents a weakening in asset utilization relative to the immediate prior year.

Income (loss) before income taxes

Over the five-year period, income before income taxes exhibited a fluctuating trend. Beginning at 962 million US dollars in 2015, it declined consecutively to reach a low point of 716 million in 2017. A notable recovery occurred in 2018, with income rising to 1025 million, followed by a decline to 879 million in 2019. Overall, the data show variability without a consistent upward or downward trajectory.

Total assets

Total assets in the segment displayed a steady upward progression throughout the period. Starting at 5237 million US dollars in 2015, total assets increased each year, culminating at 6249 million by the end of 2019. The incremental growth year-over-year indicates a gradual expansion of asset base within the segment.

Segment ROA (Return on Assets)

The segment's return on assets followed a generally declining pattern with some recovery. It began at 18.37% in 2015, then decreased over the next two years to a low of 11.5% in 2017. In 2018, ROA rebounded to 16.44%, but dipped again to 14.07% in 2019. This fluctuation suggests variations in profitability relative to assets, with the highest efficiency observed early in the period and partial recovery thereafter.

Summary Insights

The segment experienced a period of variability in profitability as indicated by income before taxes and segment ROA. Despite the inconsistent income trends, total assets consistently increased, implying continued investment or asset accumulation. The observed fluctuations in ROA suggest that asset growth did not always translate into proportional profit increases, highlighting variations in operational efficiency or market conditions during the period.

Income (loss) before income taxes

The income before income taxes exhibited volatility over the observed period. It started at a high level of 2,555 million USD in 2015, dropped significantly to 435 million USD in 2016, then recovered strongly in 2017 to 2,076 million USD. This upward trend continued into 2018, reaching a peak of 4,535 million USD, followed by a sharp decline to 1,986 million USD in 2019.

Total assets

Total assets displayed a generally increasing trend throughout the five-year span. Assets grew steadily from 21,993 million USD in 2015 to 25,150 million USD in 2019, with minor fluctuations in 2018 when assets slightly decreased to 23,230 million USD from 23,820 million USD in 2017 before rising again in 2019.

Segment ROA (Return on Assets)

ROA showed considerable variation, mirroring the fluctuations in income. The segment started with an ROA of 11.62% in 2015, plummeted to 1.91% in 2016, recovered to 8.72% in 2017, then experienced a substantial increase to 19.52% in 2018, which was the highest point in the period. In 2019, ROA decreased to 7.9%, indicating a notable drop in asset efficiency.

Overall Analysis

The segment's profitability and efficiency indicators demonstrate significant fluctuations throughout the period. Despite the growth in total assets, income before taxes and ROA showed volatility, with peaks notably in 2018. The dips in 2016 and 2019 suggest challenges in maintaining consistent performance. The asset base's gradual increase may reflect ongoing investments or expansions that did not always translate into proportional income gains, as seen in the ROA movements. The inconsistency in returns could imply exposure to market or operational risks affecting segment profitability over time.

The annual data for the Marketing and Specialties (M&S) segment reveals several notable trends across key financial metrics over the five-year period.

Income (loss) before income taxes

The pre-tax income demonstrates variability but remains relatively strong throughout the period. Starting at $1,187 million in 2015, it increased modestly in 2016 to $1,261 million before declining to $1,020 million in 2017. A significant recovery occurred in 2018, with income rising to $1,557 million, followed by a slight decrease to $1,433 million in 2019. Overall, the trend shows resilience with a peak in 2018 indicating a particularly profitable year.

Total assets

Total assets associated with the segment exhibit a general upward trend. Beginning at $5,631 million in 2015, assets increased steadily to $6,227 million in 2016 and further to $7,103 million in 2017. There was a slight decline to $6,572 million in 2018, but the asset base expanded significantly to $8,659 million by the end of 2019. This growth suggests ongoing investment or asset acquisition, except for the moderate dip in 2018.

Segment Return on Assets (ROA)

The ROA reflects fluctuating efficiency in generating returns from assets. Initially strong at 21.08% in 2015, it declined slightly to 20.25% in 2016 and dropped more markedly to 14.36% in 2017. In 2018, ROA surged to its highest point of 23.69%, indicating enhanced profitability relative to asset size. This performance was not sustained, as ROA declined again to 16.55% in 2019. The volatility in ROA might be influenced by changes in income levels and asset base dynamics over the years.

In summary, the segment experienced fluctuating income and profitability with a peak in 2018, while total assets generally grew over the period except for a minor reduction in 2018. The ROA volatility suggests variations in operational efficiency and asset utilization, with the highest effectiveness achieved in 2018, coinciding with the peak in income before income taxes.

Sales and Other Operating Revenues

There is a noticeable increasing trend in sales and other operating revenues from 2015 to 2018, with amounts rising from $3,676 million to a peak of $8,293 million. However, in 2019, a decline is observed as revenues decrease to $7,103 million. This indicates strong growth over the first four years followed by a slight contraction in the last year.

Total Assets

Total assets show a consistent upward trend throughout the five-year period. Starting at $11,043 million in 2015, assets grow steadily each year, reaching $15,716 million in 2019. This denotes ongoing asset accumulation or investment within the segment.

Segment Asset Turnover

Segment asset turnover, which measures the efficiency of asset use in generating sales, remains stable at 0.33 in 2015 and 2016. It then improves significantly to 0.5 in 2017 and peaks at 0.58 in 2018. In 2019, it declines to 0.45, indicating a decrease in asset utilization efficiency relative to the previous year, though still higher than the initial two years.

Overall Analysis

The data reflects a period of growth and increasing efficiency up to 2018, highlighted by rising revenues and improved asset turnover. The subsequent year sees a downturn in both revenue and asset turnover, despite continued growth in total assets. This suggests that, while the asset base expanded, the segment faced challenges in maintaining sales momentum and asset productivity in 2019.

The data for the Chemicals segment over the five-year period indicates a relatively stable but low level of sales and operating revenues, with values holding steady at 5 million US dollars from 2015 through 2018, followed by a decline to 3 million US dollars in 2019. This decrease in revenue during the final year suggests a contraction or reduced market activity within the segment.

Meanwhile, total assets associated with the segment exhibit a consistent upward trend throughout the period. The total asset base grew from 5,237 million US dollars at the end of 2015 to 6,249 million US dollars by the end of 2019. This steady increase indicates ongoing investment or accumulation of assets, which contrasts with the stagnant or declining revenue figures.

The segment asset turnover, recorded as zero across all years, implies either that the asset turnover ratio is either negligible or not calculated correctly due to the low sales figures relative to the asset base. This points to a potential inefficiency in asset utilization within the Chemicals segment, where large asset investments are not translating into proportionate revenue generation.

Overall, the data suggests that while asset levels in the Chemicals segment have grown steadily, the ability to generate sales and operating revenues from these assets has not improved, and in fact has declined in the last reported year. This divergence between asset growth and revenue performance may warrant further investigation to improve operational efficiency and revenue generation capacity.

The Refining segment demonstrates notable fluctuations and trends over the five-year period under review. Sales and other operating revenues exhibit variability, declining from 63,470 million US dollars in 2015 to 52,068 million US dollars in 2016, followed by a recovery and increase to 65,494 million US dollars in 2017, peaking at 83,140 million US dollars in 2018 before experiencing a slight decrease to 76,792 million US dollars in 2019. This pattern indicates significant volatility, with a marked surge in 2018 that was not fully sustained in the subsequent year.

Total assets show a steady upward trend, gradually rising from 21,993 million US dollars in 2015 to 25,150 million US dollars in 2019. The increase in assets is relatively moderate and consistent, suggesting ongoing investments or accumulation of resources within the segment.

The segment asset turnover ratio provides insight into the efficiency of asset use in generating revenues. This ratio drops significantly from 2.89 in 2015 to 2.28 in 2016, implying reduced efficiency or lower revenue generation per unit of asset. However, it recovers to 2.75 in 2017 and then increases substantially to 3.58 in 2018, reflecting a period of improved operational efficiency. In 2019, the ratio declines to 3.05, indicating a slight reduction in efficiency compared to the previous year but remains higher than the earlier years.

Sales and Other Operating Revenues

Experienced volatility with a decrease in 2016, recovery in 2017, a peak in 2018, and a moderate decline in 2019.

Total Assets

Showed consistent, moderate growth throughout the period.

Segment Asset Turnover

Decreased notably in 2016, followed by progressive improvement peaking in 2018, with a minor drop in 2019, indicating changes in asset utilization efficiency.

The analysis of the Marketing and Specialties (M&S) segment over the five-year period reveals several notable trends and fluctuations in key financial metrics.

Sales and other operating revenues

Sales and operating revenues exhibited variability during the period. The segment recorded a high of approximately US$74.6 billion in 2015, followed by a significant decrease to roughly US$64.5 billion in 2016. Revenues then recovered over the next two years, reaching around US$73.5 billion in 2017 and stabilizing near US$73.4 billion in 2018. In 2019, there was a slight uptick to approximately US$73.6 billion, indicating a return to levels close to those observed at the beginning of the period.

Total assets

Total assets displayed an overall upward trend with some volatility. Starting at US$5.6 billion in 2015, assets increased steadily to US$6.2 billion in 2016 and further to US$7.1 billion in 2017. However, 2018 saw a decline to about US$6.6 billion before assets surged sharply to US$8.7 billion in 2019. This significant rise in the final year suggests increased investment or asset accumulation within the segment.

Segment asset turnover

The segment asset turnover ratio, representing sales relative to assets, showed a declining trend over the timeframe. The ratio began strongly at 13.25 in 2015 but dropped markedly to 10.35 in 2016. It remained relatively constant through 2017 at 10.36 and improved slightly to 11.17 in 2018. Nevertheless, 2019 exhibited a steep decline to 8.5, the lowest point in the period, indicating reduced efficiency in generating sales from assets. This decline coincides with the substantial increase in assets during 2019, which was not matched by a corresponding increase in sales.

Overall, the segment experienced fluctuations in revenue and asset base, with a general increase in total assets accompanied by a reduction in asset turnover efficiency, particularly in the latter year. This may reflect strategic changes in asset deployment or capital intensity that have yet to translate into proportional sales growth.

Capital Expenditures and Investments

The capital expenditures and investments exhibited a significant decline from 2015 to 2017, decreasing from 4,457 million US dollars to 771 million US dollars. However, starting in 2018, there was a renewed upward trend, with expenditures rising to 1,548 million US dollars and further increasing to 2,292 million US dollars by 2019. This indicates a period of heavy initial investment followed by a sharp reduction, and then a gradual recovery in investment levels in the most recent years analyzed.

Depreciation, Amortization, and Impairments

Depreciation, amortization, and impairments displayed a consistent increase from 2015 through 2019. Starting at 128 million US dollars in 2015, this figure rose steadily, reaching 1,162 million US dollars by 2019. The substantial increase, particularly the jump between 2018 and 2019, suggests accelerated asset write-downs or impairments, which could be reflective of changes in asset values, operational adjustments, or other financial factors impacting depreciation.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation showed a marked decline over the five-year period. It started at a very high level of 34.82 in 2015, indicating capital spending vastly exceeded depreciation at that time. Over subsequent years, the ratio decreased significantly to 1.97 by 2019. This trend reflects a transition from an investment-heavy phase to a situation where capital expenditures and depreciation are more closely aligned, potentially signaling a maturing asset base or a shift in capital allocation strategy.

The available data for the Chemicals reportable segment does not contain any numerical values for the years 2015 through 2019. There are placeholders for "Capital expenditures and investments," "Depreciation, amortization and impairments," and "Segment capital expenditures to depreciation" ratios, but no figures are provided for analysis.

Due to the absence of data, it is not possible to identify any trends, patterns, or changes over the specified periods. No insights regarding financial performance, investment activity, or asset management within the Chemicals segment can be determined from the given information.

To conduct a meaningful analysis, the dataset requires complete values across the relevant financial metrics and reporting periods.

The data for the refining segment over the five-year period reveals several notable trends in capital expenditures, depreciation, and related ratios.

Capital Expenditures and Investments

The capital expenditures and investments fluctuated over the period. After an initial increase from 1069 million USD in 2015 to 1149 million USD in 2016, there was a significant decline to 853 million USD in 2017 and further to 826 million USD in 2018. In 2019, the expenditures recovered to 1001 million USD but did not exceed the peak observed in 2016.

Depreciation, Amortization, and Impairments

The depreciation, amortization, and impairments showed a consistent upward trend. Starting at 741 million USD in 2015, this figure increased each year, reaching 857 million USD in 2019. This steady rise indicates growing accumulated depreciation and amortization over time.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation highlights evolving spending patterns relative to asset depreciation. Initially, this ratio was relatively high at 1.44 in 2015 and peaked slightly to 1.49 in 2016. However, it then declined sharply to 1.02 in 2017 and further dipped below 1.0 in 2018, indicating that capital expenditures were less than depreciation during these years. The ratio rebounded to 1.17 in 2019 but remained below the levels seen earlier in the period.

Overall, the segment experienced a decrease in capital investment after 2016, with a partial recovery in 2019. Depreciation expenses steadily increased, suggesting aging assets or increased amortization charges. The ratio of capital expenditures to depreciation illustrates a period between 2017 and 2018 where asset reinvestment may have lagged behind asset depreciation, potentially impacting asset base maintenance or growth during those years.

Capital Expenditures and Investments

The capital expenditures and investments demonstrated variability throughout the period from 2015 to 2019. Beginning at 122 million US dollars in 2015, there was a decline to 98 million in 2016, followed by a moderate increase to 108 million in 2017. The value rose slightly to 125 million in 2018, but then surged significantly to 374 million in 2019, indicating a substantial increase in investment activities during the final year.

Depreciation, Amortization and Impairments

This financial metric showed a generally stable trend with minor fluctuations over the years. Starting at 100 million US dollars in 2015, it increased steadily to 107 million in 2016 and further to 116 million in 2017. It experienced a slight decrease to 114 million in 2018, followed by a further reduction to 103 million in 2019, suggesting possible changes in asset base or assessment practices affecting amortization and impairments.

Segment Capital Expenditures to Depreciation Ratio

The ratio of segment capital expenditures to depreciation exhibited notable changes reflecting the underlying capital investment relative to the asset depreciation. Initially, the ratio was 1.22 in 2015, then it declined below 1 in both 2016 (0.92) and 2017 (0.93), indicating capital expenditures were lower than depreciation expenses during those years. The ratio increased to 1.1 in 2018, surpassing depreciation again, before sharply rising to 3.63 in 2019. This significant rise suggests a heightened level of capital investments compared to depreciation, aligning with the aforementioned surge in capital expenditures.