Phillips 66 (Phillips 66) Interest Coverage

: 6.74 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Phillips 66's Operating Income for the three months ended in Dec. 2023 was $1,536 Mil. Phillips 66's Interest Expense for the three months ended in Dec. 2023 was $-228 Mil. Phillips 66's interest coverage for the quarter that ended in Dec. 2023 was 6.74. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Phillips 66's Interest Coverage or its related term are showing as below:

PSX' s Interest Coverage Range Over the Past 10 Years
Min: 0.77 Med: 8.59 Max: 14.98
Current: 8.59

PSX's Interest Coverage is ranked better than
56.09% of 763 companies
in the Oil & Gas industry
Industry Median: 6.67 vs PSX: 8.59

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Phillips 66 Interest Coverage Historical Data

The historical data trend for Phillips 66's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Phillips 66 Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

6.78

0.77

14.98

8.59

Phillips 66 Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																10.77	11.06	6.86	10.36	6.74

Competitive Comparison

For the Oil & Gas Refining & Marketing subindustry, Phillips 66's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Oil & Gas industry and Energy sector, Phillips 66's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Phillips 66's Interest Coverage falls into.

Phillips 66 Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Phillips 66's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Phillips 66's Interest Expense was $-926 Mil. Its Operating Income was $7,950 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,877 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	7950	/	-926
	=	8.59

Phillips 66's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Phillips 66's Interest Expense was $-228 Mil. Its Operating Income was $1,536 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,877 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1536	/	-228
	=	6.74

The higher the ratio, the stronger the company's Financial Strength is.

Phillips 66 (NYSE:PSX) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Phillips 66 Interest Coverage Related Terms

Thank you for viewing the detailed overview of Phillips 66's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Phillips 66 (Phillips 66) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Phillips 66 (NYSE:PSX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PSX:Mexico 1PSX:Italy R66:Germany R66:Germany R66:Germany R66:Germany P1SX34:Brazil PSXC:Austria

Address

2331 CityWest Boulevard, Houston, TX, USA, 77042

Website

https://www.phillips66.com

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.

Executives

Zhanna Golodryga	officer: Executive Vice President	PO BOX 10247, BIRMINGHAM AL 35202-0247
Vanessa Allen Sutherland	officer: EVP, GC and Secretary	650 W PEACHTREE ST NW, ATLANTA GA 30308
Joseph Scott Pruitt	officer: Vice President and Controller	2331 CITYWEST BLVD., HOUSTON TX 77042
Kevin J Mitchell	officer: Exec. VP, Finance and CFO	3010 BRIARPARK DRIVE, HOUSTON TX 77042
Timothy D. Roberts	officer: Executive Vice President	C/O PHILLIPS 66 PARTNERS LP, 3010 BRIARPARK DRIVE, HOUSTON TX 77042
Greg C. Garland	officer: Chairman, Pres. and CEO-Desig	2331 CITYWEST BLVD., HOUSTON TX 77042
Brian Mandell	officer: Senior Vice President	370 17TH STREET, SUITE 2500, DENVER CO 80202
Gregory Hayes	director	870 WINTER STREET, WALTHAM MA 02451
Paula Ann Johnson	officer: SVP, Gen Counsel & Sec (Desig)	600 N. DAIRY ASHFORD, HOUSTON TX 77079
Richard G Harbison	officer: Senior VP, Refining	2331 CITYWEST BLVD., HOUSTON TX 77042
Robert A Herman	officer: Executive Vice President	3010 BRIARPARK DRIVE, 9TH FLOOR, HOUSTON TX 77042
Douglas T Terreson	director	2331 CITYWEST BLVD., HOUSTON TX 77042
Denise R Singleton	director	3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Mark E Lashier	officer: President and COO	2331 CITYWEST BLVD., HOUSTON TX 77042
Charles M Holley	director