Phillips 66 (PSX)


Short-term (Operating) Activity Analysis
Quarterly Data

Difficulty: Beginner


Ratios (Summary)

Phillips 66, short-term (operating) activity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Turnover Ratios
Inventory turnover 29.02 18.39 19.37 18.46 24.77 17.65 17.68 16.58 21.19 16.42 16.72 17.74 22.34 20.59 25.55 29.40 41.27
Receivables turnover 20.59 16.39 17.97 19.09 15.93 17.71 19.37 18.03 15.37 20.18 18.86 23.45 22.44 25.97 23.56 30.47 25.56
Payables turnover 16.82 12.07 11.25 13.00 11.61 12.28 12.74 12.48 10.44 11.12 10.56 14.39 15.07 14.69 13.60 17.59 18.72
Working capital turnover 26.08 33.57 37.92 35.67 23.90 31.68 25.68 26.09 26.20 44.41 38.76 24.65 20.95 18.15 19.61 22.88 28.78
Average No. of Days
Average inventory processing period 13 20 19 20 15 21 21 22 17 22 22 21 16 18 14 12 9
Add: Average receivable collection period 18 22 20 19 23 21 19 20 24 18 19 16 16 14 15 12 14
Operating cycle 31 42 39 39 38 42 40 42 41 40 41 37 32 32 29 24 23
Less: Average payables payment period 22 30 32 28 31 30 29 29 35 33 35 25 24 25 27 21 19
Cash conversion cycle 9 12 7 11 7 12 11 13 6 7 6 12 8 7 2 3 4

Based on: 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-01), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-07-31), 10-Q (filing date: 2014-05-01).

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Phillips 66’s inventory turnover deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 exceeding Q2 2018 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Phillips 66’s receivables turnover deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 exceeding Q2 2018 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Phillips 66’s payables turnover increased from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Phillips 66’s working capital turnover deteriorated from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.

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. Phillips 66’s average inventory processing period deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 exceeding Q2 2018 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Phillips 66’s average receivable collection period deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 exceeding Q2 2018 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Phillips 66’s operating cycle deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 exceeding Q2 2018 level.
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’s average payables payment period declined from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.
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’s cash conversion cycle deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 not reaching Q2 2018 level.

Inventory Turnover

Phillips 66, inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Cost of operating revenues 25,945  27,591  26,890  22,384  25,072  20,597  19,490  18,949  19,576  17,022  17,192  12,953  16,945  19,663  23,296  17,789  29,613  34,706  40,393  35,471 
Inventories 3,543  5,544  4,901  4,743  3,395  4,455  4,245  4,387  3,150  3,905  3,993  4,108  3,477  4,388  4,126  4,166  3,397  5,673  4,928  5,908 
Ratio
Inventory turnover1 29.02 18.39 19.37 18.46 24.77 17.65 17.68 16.58 21.19 16.42 16.72 17.74 22.34 20.59 25.55 29.40 41.27

Based on: 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-01), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-07-31), 10-Q (filing date: 2014-05-01).

Q4 2018 Calculations

1 Inventory turnover = (Cost of operating revenuesQ4 2018 + Cost of operating revenuesQ3 2018 + Cost of operating revenuesQ2 2018 + Cost of operating revenuesQ1 2018) ÷ Inventories
= (25,945 + 27,591 + 26,890 + 22,384) ÷ 3,543 = 29.02

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Phillips 66’s inventory turnover deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 exceeding Q2 2018 level.

Receivables Turnover

Phillips 66, receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Sales and other operating revenues 29,098  29,788  28,980  23,595  29,746  25,627  24,087  22,894  23,397  21,624  21,849  17,409  21,893  25,792  28,512  22,778  34,963  40,417  45,549  40,283 
Accounts and notes receivable, net of allowances 5,414  6,840  6,006  5,399  6,424  5,421  4,750  4,979  5,485  4,101  4,610  3,991  4,411  4,315  5,377  4,717  6,306  7,043  7,925  7,298 
Ratio
Receivables turnover1 20.59 16.39 17.97 19.09 15.93 17.71 19.37 18.03 15.37 20.18 18.86 23.45 22.44 25.97 23.56 30.47 25.56

Based on: 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-01), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-07-31), 10-Q (filing date: 2014-05-01).

Q4 2018 Calculations

1 Receivables turnover = (Sales and other operating revenuesQ4 2018 + Sales and other operating revenuesQ3 2018 + Sales and other operating revenuesQ2 2018 + Sales and other operating revenuesQ1 2018) ÷ Accounts and notes receivable, net of allowances
= (29,098 + 29,788 + 28,980 + 23,595) ÷ 5,414 = 20.59

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Phillips 66’s receivables turnover deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 exceeding Q2 2018 level.

Payables Turnover

Phillips 66, payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Cost of operating revenues 25,945  27,591  26,890  22,384  25,072  20,597  19,490  18,949  19,576  17,022  17,192  12,953  16,945  19,663  23,296  17,789  29,613  34,706  40,393  35,471 
Accounts payable 6,113  8,444  8,437  6,736  7,242  6,404  5,891  5,829  6,395  5,767  6,319  5,063  5,155  6,151  7,749  6,965  7,488  10,381  11,529  11,390 
Ratio
Payables turnover1 16.82 12.07 11.25 13.00 11.61 12.28 12.74 12.48 10.44 11.12 10.56 14.39 15.07 14.69 13.60 17.59 18.72

Based on: 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-01), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-07-31), 10-Q (filing date: 2014-05-01).

Q4 2018 Calculations

1 Payables turnover = (Cost of operating revenuesQ4 2018 + Cost of operating revenuesQ3 2018 + Cost of operating revenuesQ2 2018 + Cost of operating revenuesQ1 2018) ÷ Accounts payable
= (25,945 + 27,591 + 26,890 + 22,384) ÷ 6,113 = 16.82

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Phillips 66’s payables turnover increased from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.

Working Capital Turnover

Phillips 66, working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in millions)
Current assets 13,209  15,314  14,579  12,125  14,390  12,935  12,456  12,170  12,680  11,964  12,643  11,216  12,256  15,049  16,534  16,144  16,696  18,194  20,605  21,059 
Less: Current liabilities 8,935  11,974  11,732  9,236  10,107  9,905  8,874  8,730  9,463  10,100  10,400  7,419  7,531  8,875  10,075  9,864  11,094  13,769  15,120  15,164 
Working capital 4,274  3,340  2,847  2,889  4,283  3,030  3,582  3,440  3,217  1,864  2,243  3,797  4,725  6,174  6,459  6,280  5,602  4,425  5,485  5,895 
Sales and other operating revenues 29,098  29,788  28,980  23,595  29,746  25,627  24,087  22,894  23,397  21,624  21,849  17,409  21,893  25,792  28,512  22,778  34,963  40,417  45,549  40,283 
Ratio
Working capital turnover1 26.08 33.57 37.92 35.67 23.90 31.68 25.68 26.09 26.20 44.41 38.76 24.65 20.95 18.15 19.61 22.88 28.78

Based on: 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-01), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-07-31), 10-Q (filing date: 2014-05-01).

Q4 2018 Calculations

1 Working capital turnover = (Sales and other operating revenuesQ4 2018 + Sales and other operating revenuesQ3 2018 + Sales and other operating revenuesQ2 2018 + Sales and other operating revenuesQ1 2018) ÷ Working capital
= (29,098 + 29,788 + 28,980 + 23,595) ÷ 4,274 = 26.08

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Phillips 66’s working capital turnover deteriorated from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.

Average Inventory Processing Period

Phillips 66, average inventory processing period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Inventory turnover 29.02 18.39 19.37 18.46 24.77 17.65 17.68 16.58 21.19 16.42 16.72 17.74 22.34 20.59 25.55 29.40 41.27
Ratio (no. of days)
Average inventory processing period1 13 20 19 20 15 21 21 22 17 22 22 21 16 18 14 12 9

Based on: 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-01), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-07-31), 10-Q (filing date: 2014-05-01).

Q4 2018 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 29.02 = 13

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. Phillips 66’s average inventory processing period deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 exceeding Q2 2018 level.

Average Receivable Collection Period

Phillips 66, average receivable collection period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Receivables turnover 20.59 16.39 17.97 19.09 15.93 17.71 19.37 18.03 15.37 20.18 18.86 23.45 22.44 25.97 23.56 30.47 25.56
Ratio (no. of days)
Average receivable collection period1 18 22 20 19 23 21 19 20 24 18 19 16 16 14 15 12 14

Based on: 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-01), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-07-31), 10-Q (filing date: 2014-05-01).

Q4 2018 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 20.59 = 18

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’s average receivable collection period deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 exceeding Q2 2018 level.

Operating Cycle

Phillips 66, operating cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
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 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Average inventory processing period 13 20 19 20 15 21 21 22 17 22 22 21 16 18 14 12 9
Average receivable collection period 18 22 20 19 23 21 19 20 24 18 19 16 16 14 15 12 14
Ratio
Operating cycle1 31 42 39 39 38 42 40 42 41 40 41 37 32 32 29 24 23

Based on: 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-01), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-07-31), 10-Q (filing date: 2014-05-01).

Q4 2018 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= 13 + 18 = 31

Ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Phillips 66’s operating cycle deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 exceeding Q2 2018 level.

Average Payables Payment Period

Phillips 66, average payables payment period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Payables turnover 16.82 12.07 11.25 13.00 11.61 12.28 12.74 12.48 10.44 11.12 10.56 14.39 15.07 14.69 13.60 17.59 18.72
Ratio (no. of days)
Average payables payment period1 22 30 32 28 31 30 29 29 35 33 35 25 24 25 27 21 19

Based on: 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-01), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-07-31), 10-Q (filing date: 2014-05-01).

Q4 2018 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 16.82 = 22

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’s average payables payment period declined from Q2 2018 to Q3 2018 and from Q3 2018 to Q4 2018.

Cash Conversion Cycle

Phillips 66, cash conversion cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
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 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Average inventory processing period 13 20 19 20 15 21 21 22 17 22 22 21 16 18 14 12 9
Average receivable collection period 18 22 20 19 23 21 19 20 24 18 19 16 16 14 15 12 14
Average payables payment period 22 30 32 28 31 30 29 29 35 33 35 25 24 25 27 21 19
Ratio
Cash conversion cycle1 9 12 7 11 7 12 11 13 6 7 6 12 8 7 2 3 4

Based on: 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-26), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-01), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-17), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-29), 10-K (filing date: 2016-02-19), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-20), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-07-31), 10-Q (filing date: 2014-05-01).

Q4 2018 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 13 + 1822 = 9

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’s cash conversion cycle deteriorated from Q2 2018 to Q3 2018 but then improved from Q3 2018 to Q4 2018 not reaching Q2 2018 level.