Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Phillips 66, short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Phillips 66 inventory turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Phillips 66 receivables turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Phillips 66 payables turnover ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Phillips 66 working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Phillips 66 number of days of receivables outstanding improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Phillips 66 operating cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Phillips 66 number of days of payables outstanding decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Phillips 66 cash conversion cycle deteriorated from 2017 to 2018 and from 2018 to 2019. |
Inventory Turnover
Phillips 66, inventory 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) | ||||||
| Cost of operating revenues | 100,603) | 102,810) | 84,108) | 66,743) | 77,693) | |
| Inventories | 3,776) | 3,543) | 3,395) | 3,150) | 3,477) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 26.64 | 29.02 | 24.77 | 21.19 | 22.34 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Chevron Corp. | 23.92 | — | — | — | — | |
| ConocoPhillips | 31.74 | — | — | — | — | |
| Exxon Mobil Corp. | 13.79 | — | — | — | — | |
| Marathon Petroleum Corp. | 10.76 | — | — | — | — | |
| Occidental Petroleum Corp. | 14.09 | — | — | — | — | |
| Valero Energy Corp. | 14.76 | — | — | — | — | |
| Inventory Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 15.01 | — | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Energy | 14.32 | — | — | — | — | |
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
Inventory turnover = Cost of operating revenues ÷ Inventories
= 100,603 ÷ 3,776 = 26.64
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Phillips 66 inventory turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Receivables Turnover
Phillips 66, receivables 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 | 107,293) | 111,461) | 102,354) | 84,279) | 98,975) | |
| Accounts and notes receivable, net of allowances | 7,376) | 5,414) | 6,424) | 5,485) | 4,411) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 14.55 | 20.59 | 15.93 | 15.37 | 22.44 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Chevron Corp. | 10.50 | — | — | — | — | |
| ConocoPhillips | 9.97 | — | — | — | — | |
| Exxon Mobil Corp. | 12.11 | — | — | — | — | |
| Marathon Petroleum Corp. | 15.75 | — | — | — | — | |
| Occidental Petroleum Corp. | 3.20 | — | — | — | — | |
| Valero Energy Corp. | 13.44 | — | — | — | — | |
| Receivables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 11.35 | — | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Energy | 10.53 | — | — | — | — | |
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
Receivables turnover = Sales and other operating revenues ÷ Accounts and notes receivable, net of allowances
= 107,293 ÷ 7,376 = 14.55
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Phillips 66 receivables turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Payables Turnover
Phillips 66, payables 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) | ||||||
| Cost of operating revenues | 100,603) | 102,810) | 84,108) | 66,743) | 77,693) | |
| Accounts payable | 8,043) | 6,113) | 7,242) | 6,395) | 5,155) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 12.51 | 16.82 | 11.61 | 10.44 | 15.07 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Chevron Corp. | 9.92 | — | — | — | — | |
| ConocoPhillips | 10.25 | — | — | — | — | |
| Exxon Mobil Corp. | 10.35 | — | — | — | — | |
| Marathon Petroleum Corp. | 9.48 | — | — | — | — | |
| Occidental Petroleum Corp. | 2.91 | — | — | — | — | |
| Valero Energy Corp. | 10.15 | — | — | — | — | |
| Payables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.35 | — | — | — | — | |
| Payables Turnover, Industry | ||||||
| Energy | 9.14 | — | — | — | — | |
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
Payables turnover = Cost of operating revenues ÷ Accounts payable
= 100,603 ÷ 8,043 = 12.51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Phillips 66 payables turnover ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level. |
Working Capital Turnover
Phillips 66, working capital 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) | ||||||
| Current assets | 14,395) | 13,209) | 14,390) | 12,680) | 12,256) | |
| Less: Current liabilities | 11,646) | 8,935) | 10,107) | 9,463) | 7,531) | |
| Working capital | 2,749) | 4,274) | 4,283) | 3,217) | 4,725) | |
| Sales and other operating revenues | 107,293) | 111,461) | 102,354) | 84,279) | 98,975) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 39.03 | 26.08 | 23.90 | 26.20 | 20.95 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Chevron Corp. | 77.75 | — | — | — | — | |
| ConocoPhillips | 3.30 | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | 30.81 | — | — | — | — | |
| Occidental Petroleum Corp. | 5.46 | — | — | — | — | |
| Valero Energy Corp. | 18.65 | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 60.26 | — | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Energy | 51.98 | — | — | — | — | |
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
Working capital turnover = Sales and other operating revenues ÷ Working capital
= 107,293 ÷ 2,749 = 39.03
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Phillips 66 working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Average Inventory Processing Period
Phillips 66, average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 26.64 | 29.02 | 24.77 | 21.19 | 22.34 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 14 | 13 | 15 | 17 | 16 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Chevron Corp. | 15 | — | — | — | — | |
| ConocoPhillips | 11 | — | — | — | — | |
| Exxon Mobil Corp. | 26 | — | — | — | — | |
| Marathon Petroleum Corp. | 34 | — | — | — | — | |
| Occidental Petroleum Corp. | 26 | — | — | — | — | |
| Valero Energy Corp. | 25 | — | — | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 24 | — | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Energy | 25 | — | — | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 26.64 = 14
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Phillips 66, average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 14.55 | 20.59 | 15.93 | 15.37 | 22.44 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 25 | 18 | 23 | 24 | 16 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Chevron Corp. | 35 | — | — | — | — | |
| ConocoPhillips | 37 | — | — | — | — | |
| Exxon Mobil Corp. | 30 | — | — | — | — | |
| Marathon Petroleum Corp. | 23 | — | — | — | — | |
| Occidental Petroleum Corp. | 114 | — | — | — | — | |
| Valero Energy Corp. | 27 | — | — | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 32 | — | — | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Energy | 35 | — | — | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 14.55 = 25
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Phillips 66 number of days of receivables outstanding improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Operating Cycle
Phillips 66, operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 14 | 13 | 15 | 17 | 16 | |
| Average receivable collection period | 25 | 18 | 23 | 24 | 16 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 39 | 31 | 38 | 41 | 32 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Chevron Corp. | 50 | — | — | — | — | |
| ConocoPhillips | 48 | — | — | — | — | |
| Exxon Mobil Corp. | 56 | — | — | — | — | |
| Marathon Petroleum Corp. | 57 | — | — | — | — | |
| Occidental Petroleum Corp. | 140 | — | — | — | — | |
| Valero Energy Corp. | 52 | — | — | — | — | |
| Operating Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 56 | — | — | — | — | |
| Operating Cycle, Industry | ||||||
| Energy | 60 | — | — | — | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 14 + 25 = 39
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Phillips 66 operating cycle improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Average Payables Payment Period
Phillips 66, average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 12.51 | 16.82 | 11.61 | 10.44 | 15.07 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 29 | 22 | 31 | 35 | 24 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Chevron Corp. | 37 | — | — | — | — | |
| ConocoPhillips | 36 | — | — | — | — | |
| Exxon Mobil Corp. | 35 | — | — | — | — | |
| Marathon Petroleum Corp. | 38 | — | — | — | — | |
| Occidental Petroleum Corp. | 126 | — | — | — | — | |
| Valero Energy Corp. | 36 | — | — | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 39 | — | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Energy | 40 | — | — | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.51 = 29
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Phillips 66 number of days of payables outstanding decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level. |
Cash Conversion Cycle
Phillips 66, cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 14 | 13 | 15 | 17 | 16 | |
| Average receivable collection period | 25 | 18 | 23 | 24 | 16 | |
| Average payables payment period | 29 | 22 | 31 | 35 | 24 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 10 | 9 | 7 | 6 | 8 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Chevron Corp. | 13 | — | — | — | — | |
| ConocoPhillips | 12 | — | — | — | — | |
| Exxon Mobil Corp. | 21 | — | — | — | — | |
| Marathon Petroleum Corp. | 19 | — | — | — | — | |
| Occidental Petroleum Corp. | 14 | — | — | — | — | |
| Valero Energy Corp. | 16 | — | — | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 17 | — | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Energy | 20 | — | — | — | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 14 + 25 – 29 = 10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Phillips 66 cash conversion cycle deteriorated from 2017 to 2018 and from 2018 to 2019. |