Short-term (Operating) Activity Analysis
Quarterly Data

Difficulty: Beginner


Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Turnover Ratios
Inventory turnover 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 26.23 31.21 25.68 45.45
Receivables turnover 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 24.04 21.83 23.39 21.72
Payables turnover 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 14.33 13.34 13.32 15.32
Working capital turnover 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 38.26 31.55 28.95 27.21
Average No. of Days
Average inventory processing period 19 20 15 21 21 22 17 22 22 21 16 18 14 12 9 14 12 14 8
Add: Average receivable collection period 20 19 23 21 19 20 24 18 19 16 16 14 15 12 14 15 17 16 17
Operating cycle 39 39 38 42 40 42 41 40 41 37 32 32 29 24 23 29 29 30 25
Less: Average payables payment period 32 28 31 30 29 29 35 33 35 25 24 25 27 21 19 25 27 27 24
Cash conversion cycle 7 11 7 12 11 13 6 7 6 12 8 7 2 3 4 4 2 3 1
Source: Based on data from Phillips 66 Quarterly and Annual Reports
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 Q4 2017 to Q1 2018 but then slightly improved from Q1 2018 to Q2 2018.
Receivables turnover An activity ratio equal to revenue divided by receivables. Phillips 66's receivables turnover improved from Q4 2017 to Q1 2018 but then slightly deteriorated from Q1 2018 to Q2 2018.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Phillips 66's payables turnover increased from Q4 2017 to Q1 2018 but then declined significantly from Q1 2018 to Q2 2018.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Phillips 66's working capital turnover improved from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.
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 Q4 2017 to Q1 2018 but then slightly improved from Q1 2018 to Q2 2018.
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 improved from Q4 2017 to Q1 2018 but then slightly deteriorated from Q1 2018 to Q2 2018.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
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 Q4 2017 to Q1 2018 but then increased from Q1 2018 to Q2 2018 exceeding Q4 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.

Inventory Turnover

Phillips 66, inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Cost of operating revenues 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  38,232  39,709  38,289  36,221 
Inventories 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  3,354  4,737  5,033  5,811 
Ratio
Inventory turnover1 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 26.23 31.21 25.68 45.45
Source: Based on data from Phillips 66 Quarterly and Annual Reports

Q2 2018 Calculations

1 Inventory turnover = (Cost of operating revenuesQ2 2018 + Cost of operating revenuesQ1 2018 + Cost of operating revenuesQ4 2017 + Cost of operating revenuesQ3 2017) ÷ Inventories
= (26,890 + 22,384 + 25,072 + 20,597) ÷ 4,901 = 19.37

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 Q4 2017 to Q1 2018 but then slightly improved from Q1 2018 to Q2 2018.

Receivables Turnover

Phillips 66, receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Sales and other operating revenues 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  43,049  44,146  43,190  41,211 
Accounts and notes receivable, net of allowances 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  7,900  7,618  7,835  8,388 
Ratio
Receivables turnover1 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 24.04 21.83 23.39 21.72
Source: Based on data from Phillips 66 Quarterly and Annual Reports

Q2 2018 Calculations

1 Receivables turnover = (Sales and other operating revenuesQ2 2018 + Sales and other operating revenuesQ1 2018 + Sales and other operating revenuesQ4 2017 + Sales and other operating revenuesQ3 2017) ÷ Accounts and notes receivable, net of allowances
= (28,980 + 23,595 + 29,746 + 25,627) ÷ 6,006 = 17.97

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Phillips 66's receivables turnover improved from Q4 2017 to Q1 2018 but then slightly deteriorated from Q1 2018 to Q2 2018.

Payables Turnover

Phillips 66, payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Cost of operating revenues 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  38,232  39,709  38,289  36,221 
Accounts payable 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  9,948  11,236  11,061  11,920 
Ratio
Payables turnover1 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 14.33 13.34 13.32 15.32
Source: Based on data from Phillips 66 Quarterly and Annual Reports

Q2 2018 Calculations

1 Payables turnover = (Cost of operating revenuesQ2 2018 + Cost of operating revenuesQ1 2018 + Cost of operating revenuesQ4 2017 + Cost of operating revenuesQ3 2017) ÷ Accounts payable
= (26,890 + 22,384 + 25,072 + 20,597) ÷ 8,437 = 11.25

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 Q4 2017 to Q1 2018 but then declined significantly from Q1 2018 to Q2 2018.

Working Capital Turnover

Phillips 66, working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data (USD $ in millions)
Current assets 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  19,237  21,085  20,529  21,170 
Less: Current liabilities 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  12,931  14,680  14,005  14,951 
Working capital 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  6,306  6,405  6,524  6,219 
Sales and other operating revenues 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  43,049  44,146  43,190  41,211 
Ratio
Working capital turnover1 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 38.26 31.55 28.95 27.21
Source: Based on data from Phillips 66 Quarterly and Annual Reports

Q2 2018 Calculations

1 Working capital turnover = (Sales and other operating revenuesQ2 2018 + Sales and other operating revenuesQ1 2018 + Sales and other operating revenuesQ4 2017 + Sales and other operating revenuesQ3 2017) ÷ Working capital
= (28,980 + 23,595 + 29,746 + 25,627) ÷ 2,847 = 37.92

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Phillips 66's working capital turnover improved from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data
Inventory turnover 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 26.23 31.21 25.68 45.45
Ratio (no. of days)
Average inventory processing period1 19 20 15 21 21 22 17 22 22 21 16 18 14 12 9 14 12 14 8
Source: Based on data from Phillips 66 Quarterly and Annual Reports

Q2 2018 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 19.37 = 19

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 Q4 2017 to Q1 2018 but then slightly improved from Q1 2018 to Q2 2018.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data
Receivables turnover 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 24.04 21.83 23.39 21.72
Ratio (no. of days)
Average receivable collection period1 20 19 23 21 19 20 24 18 19 16 16 14 15 12 14 15 17 16 17
Source: Based on data from Phillips 66 Quarterly and Annual Reports

Q2 2018 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 17.97 = 20

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 improved from Q4 2017 to Q1 2018 but then slightly deteriorated from Q1 2018 to Q2 2018.

Operating Cycle

Phillips 66, operating cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data
Average inventory processing period 19 20 15 21 21 22 17 22 22 21 16 18 14 12 9 14 12 14 8
Average receivable collection period 20 19 23 21 19 20 24 18 19 16 16 14 15 12 14 15 17 16 17
Ratio
Operating cycle1 39 39 38 42 40 42 41 40 41 37 32 32 29 24 23 29 29 30 25
Source: Based on data from Phillips 66 Quarterly and Annual Reports

Q2 2018 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= 19 + 20 = 39

Ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data
Payables turnover 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 14.33 13.34 13.32 15.32
Ratio (no. of days)
Average payables payment period1 32 28 31 30 29 29 35 33 35 25 24 25 27 21 19 25 27 27 24
Source: Based on data from Phillips 66 Quarterly and Annual Reports

Q2 2018 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.25 = 32

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 Q4 2017 to Q1 2018 but then increased from Q1 2018 to Q2 2018 exceeding Q4 2017 level.

Cash Conversion Cycle

Phillips 66, cash conversion cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
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 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013
Selected Financial Data
Average inventory processing period 19 20 15 21 21 22 17 22 22 21 16 18 14 12 9 14 12 14 8
Average receivable collection period 20 19 23 21 19 20 24 18 19 16 16 14 15 12 14 15 17 16 17
Average payables payment period 32 28 31 30 29 29 35 33 35 25 24 25 27 21 19 25 27 27 24
Ratio
Cash conversion cycle1 7 11 7 12 11 13 6 7 6 12 8 7 2 3 4 4 2 3 1
Source: Based on data from Phillips 66 Quarterly and Annual Reports

Q2 2018 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 19 + 2032 = 7

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.