Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Phillips 66's annualizedNet Income for the quarter that ended in Dec. 2023 was $5,040 Mil. Phillips 66's average total tangible assets for the quarter that ended in Dec. 2023 was $74,168 Mil. Therefore, Phillips 66's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was 6.80%.
The historical rank and industry rank for Phillips 66's Return-on-Tangible-Asset or its related term are showing as below:
PSX'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -7.43 Med: 9.52 Max: 17.3
Current: 9.48
During the past 13 years, Phillips 66's highest Return-on-Tangible-Asset was 17.30%. The lowest was -7.43%. And the median was 9.52%.
PSX's Return-on-Tangible-Asset is ranked better than 78.6% of 1089
companies
in the Oil & Gas industry
Industry Median: 2.77
vs PSX: 9.48
Phillips 66 Return-on-Tangible-Asset Historical Data
The historical data trend for Phillips 66's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Phillips 66's Return-on-Tangible-Asset
For the Oil & Gas Refining & Marketing subindustry, Phillips 66's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Phillips 66's Return-on-Tangible-Asset Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Phillips 66's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Phillips 66's Return-on-Tangible-Asset falls into.
Phillips 66 Return-on-Tangible-Asset Calculation
Phillips 66's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2023) net income data.
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Phillips 66 Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Phillips 66's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Phillips 66 is an independent refiner with 12 refineries that have a total crude throughput capacity of 1.9 million barrels per day, or mmb/d. In 2023, the Rodeo, California, facility will cease operations and be converted to produce renewable diesel. The midstream segment comprises extensive transportation and NGL processing assets and includes DCP Midstream, which holds 600 mbd of NGL fractionation and 22,000 miles of pipeline. Its CPChem chemical joint venture operates facilities in the United States and the Middle East and primarily produces olefins and polyolefins.
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