Phillips 66 — Earnings Quality Grade F
PSX · Energy
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 27 days, change -1 days YoY
AR growth -11.4% vs revenue growth -7.5%
Revenue -7.5%, CFFO 18.4%. Cash follows revenue
Expense Quality
Inventory growth 27.6% far exceeds COGS -9.8%, margin rising. Fraud signal
CapEx growth 20.1% is >2x revenue growth -7.5%
SG&A/Gross Profit = 18.7%, excellent (<30%)
Gross margin 9.8%, change +2.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.13. Profits backed by cash
FCF $2.7B, FCF/NI = 0.62
Accruals ratio = -0.8%. Low accruals
Cash $1.1B covers only 6% of debt $19.7B
Balance Sheet Health
Goodwill+Intangibles $2.4B = 8% of equity. Manageable
Debt/EBITDA = 2.0x. Healthy
Other assets grew 30.6% vs revenue -7.5%
Write-offs up 132% YoY
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -12% YoY. Normal
Manipulation Score
M-Score = -2.79 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10