Marathon Petroleum Corp. (NYSE:MPC)

Total Asset Turnover

The reported total asset turnover ratio experienced a decline from 1.26 in 2019 to 0.82 in 2020, indicating reduced efficiency in using assets to generate sales during that period. A strong recovery followed, with the ratio rising to 1.41 in 2021 and peaking at 1.97 in 2022, before slightly decreasing to 1.73 in 2023. The adjusted total asset turnover mirrors this trend closely but shows marginally lower values from 2021 onward, suggesting adjustments somewhat temper the reported performance but do not change the overall pattern.

Current Ratio

The reported current ratio increased significantly from 1.25 in 2019 to 1.81 in 2020, suggesting improved short-term liquidity. It then slightly declined to 1.7 in 2021, modestly recovered to 1.76 in 2022, and showed a minor decrease again to 1.59 in 2023. Adjusted current ratios are generally higher than reported ones in later years, peaking at 1.95 in 2022 before settling at 1.73 in 2023, indicating a consistently stronger liquidity position after adjustments.

Debt to Equity Ratio

Reported debt to equity increased sharply from 0.86 in 2019 to 1.42 in 2020, reflecting higher leverage, before decreasing to 0.97 in 2021 and stabilizing around 0.96 in 2022. A rise to 1.12 was observed in 2023. Adjusted debt to equity ratios are consistently lower than reported figures, showing a similar but more moderate pattern, with an increase in 2020 to 0.9, then a decline and relative stability around 0.62-0.71 through 2023, which suggests adjustments reduce the perceived leverage risk.

Debt to Capital Ratio

The reported debt to capital ratio increased from 0.46 in 2019 to 0.59 in 2020, followed by a decline to 0.49 in 2021 and steady values through 2022, with a slight increase to 0.53 in 2023. The adjusted figures are consistently lower, ranging from 0.38 in 2019, peaking at 0.47 in 2020, then decreasing and stabilizing near 0.39-0.42, indicating a more conservative capital structure assessment post-adjustment.

Financial Leverage

Reported financial leverage rose considerably from 2.93 in 2019 to 3.84 in 2020, hinting at increased reliance on debt financing. It decreased to 3.26 in 2021 and remained near that level in 2022 before increasing again to 3.52 in 2023. Adjusted financial leverage is lower, ranging from 1.97 in 2019, rising to 2.33 in 2020, then oscillating around 2.09-2.22 afterwards, indicating adjustments present a less leveraged profile overall.

Net Profit Margin

The reported net profit margin dropped drastically into negative territory in 2020 (-14.08%), signaling significant profitability challenges that year. It rebounded to positive margins of 8.12% in 2021 and remained stable around 8.18% in 2022 before declining to 6.52% in 2023. Adjusted net profit margins showed a deeper negative margin in 2020 (-17.57%) and fluctuated with a lower margin of 4.67% in 2021, an improved peak of 9.69% in 2022, and a decrease to 6.76% in 2023, reflecting volatility but resilience overall.

Return on Equity (ROE)

Reported ROE followed a similar pattern to net margin, plunging from 7.83% in 2019 to a large negative -44.26% in 2020, then recovering substantially to 37.16% in 2021, peaking at 52.38% in 2022, before declining to 39.67% in 2023. Adjusted ROE data show less severe fluctuations but still indicate significant recovery post-2020, with a low of -33.52% in 2020 and a steady rise to 38.39% in 2022 before dropping to 25.05% in 2023.

Return on Assets (ROA)

The reported ROA mirrored the net margin and ROE trends, turning negative in 2020 at -11.54% after 2.68% in 2019, then recovering to 11.41% in 2021 and peaking at 16.15% in 2022 before decreasing to 11.26% in 2023. Adjusted ROA figures follow a similar pattern with a low of -14.39% in 2020 and notable improvement to 18.36% in 2022, slightly above the reported figure, then a decline to 11.3% in 2023.

The financial data reveals several notable trends in the company's performance and asset utilization over the five-year period ending in 2023.

Sales and Other Operating Revenues

Sales experienced a significant decline from 2019 to 2020, dropping from approximately $124 billion to just under $70 billion. This decline was followed by a strong recovery in 2021 and 2022, with revenues exceeding $177 billion in 2022, the highest in the observed period. However, in 2023, sales decreased again to around $148 billion, indicating some volatility in revenue generation.

Total Assets

Total assets decreased from about $98.6 billion in 2019 to $85.2 billion by the end of 2020. The asset base then showed minor fluctuations but remained relatively stable, concluding at approximately $86 billion in 2023. This suggests limited asset growth during the period, with a slight recovery after 2020.

Reported Total Asset Turnover

The reported total asset turnover ratio decreased sharply in 2020, falling to 0.82 from 1.26 in 2019, reflecting reduced efficiency in generating sales from assets. From 2021 onwards, asset turnover improved markedly, peaking at 1.97 in 2022, indicating enhanced operational efficiency. In 2023, the ratio decreased moderately to 1.73 but remained significantly higher than the 2019 and 2020 levels.

Adjusted Total Assets

Adjusted total assets follow a trend similar to total assets, declining from about $99.4 billion in 2019 to $85.2 billion in 2020, then gradually increasing to approximately $93.7 billion in 2022 before declining again to $88.8 billion in 2023.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio mirrors the reported turnover's pattern, dropping to 0.82 in 2020 from 1.25 in 2019, then rising to a peak of 1.89 in 2022. It decreased slightly in 2023 to 1.67, illustrating a similar trend of asset utilization efficiency after adjustment.

Overall, the data indicate that the company faced significant challenges in 2020, likely impacting revenue and asset efficiency. Subsequently, there was a recovery phase with improved efficiency in asset utilization and sales growth, especially in 2021 and 2022, although the performance slightly moderated in 2023. The stability in total assets combined with fluctuating turnover ratios suggests improvements were driven more by effective use of existing assets rather than expansion of the asset base.

Current Assets

The current assets exhibited a generally upward trend from 2019 to 2022, increasing from 20,170 million US dollars to 35,242 million US dollars. However, there was a decline observed in 2023, where current assets decreased to 32,131 million US dollars. This suggests that while the company was strengthening its short-term asset base over the first four years, it experienced a reduction in liquidity at the end of the latest period.

Current Liabilities

Current liabilities initially decreased slightly from 16,147 million US dollars in 2019 to 15,663 million US dollars in 2020. From 2021 onwards, current liabilities consistently increased, reaching 20,150 million US dollars in 2023. This upward movement indicates growing obligations due within the year, which may exert pressure on short-term financial stability if not adequately managed.

Reported Current Ratio

The reported current ratio, a measure of short-term liquidity, improved significantly from 1.25 in 2019 to 1.81 in 2020, indicating a stronger ability to cover current liabilities with current assets. It slightly declined to 1.70 in 2021 but then rose to 1.76 in 2022 before dropping to 1.59 in 2023. Although the ratio remains above 1 in all years, the decrease in 2023 reflects a potential weakening in liquidity compared to the prior two years.

Adjusted Current Assets

Adjusted current assets follow a similar trend as reported current assets but at higher levels, starting at 21,058 million US dollars in 2019 and climbing steadily to a peak of 38,991 million US dollars in 2022. Similar to the reported figure, adjusted current assets declined in 2023 to 34,945 million US dollars, indicating a reduction in the liquid or easily convertible asset base considered after adjustments.

Adjusted Current Ratio

The adjusted current ratio improved markedly from 1.3 in 2019 to 1.81 in 2020 and peaked at 1.95 in 2022, indicating a very strong liquidity position based on adjusted asset measurements. However, in 2023, it declined to 1.73, which, while still healthy, signals a recent weakening in liquidity on an adjusted basis.

Summary of Trends

Over the period from 2019 to 2023, both reported and adjusted liquidity ratios showed an overall improvement until 2022, reflecting strengthening short-term financial health. The concurrent rise in current liabilities from 2021 through 2023 indicates that the company faced increasing short-term obligations during this period. The decrease in both current assets and adjusted current assets in 2023, coupled with a decline in the corresponding ratios, suggests a reduction in liquidity strength in the most recent year, meriting closer monitoring for potential impacts on the company’s ability to meet short-term liabilities.

Total Debt

The total debt increased from 28,838 million US dollars in 2019 to a peak of 31,584 million in 2020, followed by a decline to 25,539 million in 2021. Subsequently, it slightly rose again to 27,700 million in 2022 and reached 27,283 million in 2023. Overall, the total debt demonstrates volatility with a notable peak in 2020 and a gradual increase in the last two years.

Total Stockholders’ Equity

The reported total stockholders’ equity showed a significant drop from 33,694 million in 2019 to 22,199 million in 2020, reflecting a substantial decline. It partially recovered to 26,206 million in 2021 and then steadily increased to 27,715 million in 2022 before decreasing again to 24,404 million in 2023. This indicates considerable fluctuations and an overall downward trend relative to 2019.

Reported Debt to Equity Ratio

The reported debt to equity ratio increased sharply from 0.86 in 2019 to 1.42 in 2020, indicating that debt grew significantly compared to equity during that year. The ratio then decreased to 0.97 in 2021, remained stable at 0.96 in 2022, and rose again to 1.12 in 2023. This pattern reflects periods of both deleveraging and increased leverage, with leverage high in 2020 and again on the rise in 2023.

Adjusted Total Debt

Adjusted total debt mirrors the trend in total debt, rising from 31,317 million in 2019 to 33,095 million in 2020, then falling to 26,904 million in 2021. After this drop, it slightly increased to 27,909 million in 2022 and 28,501 million in 2023. The adjusted debt figures confirm a peak in 2020 followed by reduction and slight subsequent increases.

Adjusted Total Equity

The adjusted total equity shows a decline from 50,367 million in 2019 to 36,579 million in 2020, reflecting a significant reduction that aligns with the reported equity drop. It then recovered steadily to 42,156 million in 2021, 44,785 million in 2022, before decreasing again to 40,046 million in 2023. The adjusted equity trend highlights volatility but maintained values substantially higher than reported equity across all years.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio rose from 0.62 in 2019 to 0.90 in 2020, indicating increased leverage. It then decreased to 0.64 in 2021 and remained stable at 0.62 in 2022, with a slight rise to 0.71 in 2023. This pattern suggests moderate leverage with a peak in 2020, followed by a period of deleveraging, and a modest increase in leverage in the latest year.

Total Debt

The total debt exhibited a moderate increase from 2019 through 2020, rising from 28,838 million to 31,584 million US dollars. Subsequently, it declined to 25,539 million in 2021, followed by a slight increase to 26,700 million in 2022 and to 27,283 million in 2023. Overall, the debt level displays a fluctuating but relatively stable pattern over the five-year period.

Total Capital

Total capital decreased notably from 62,532 million in 2019 to 53,783 million in 2020, marking a significant contraction. The downward trend continued albeit more gradually, with values of 51,745 million in 2021 and a minor rebound to 54,415 million in 2022. However, the figure decreased again to 51,687 million in 2023, indicating a general contraction in capital over the period under review.

Reported Debt to Capital Ratio

The reported debt to capital ratio rose sharply from 0.46 in 2019 to 0.59 in 2020, reflecting increased leverage relative to capital during that year. Following this spike, the ratio improved to 0.49 in 2021 and remained stable at 0.49 in 2022, before increasing modestly to 0.53 in 2023. This trend suggests that leverage peaked in 2020 but has since remained elevated without returning to earlier lower levels.

Adjusted Total Debt

Adjusted total debt values followed a pattern similar to total debt, increasing from 31,317 million in 2019 to 33,095 million in 2020, then reducing substantially to 26,904 million in 2021. The adjusted debt then experienced gradual increases to 27,909 million in 2022 and 28,501 million in 2023. These movements corroborate the observation of fluctuating debt levels within the analyzed timeframe.

Adjusted Total Capital

Adjusted total capital declined considerably from 81,684 million in 2019 to 69,674 million in 2020, further decreasing slightly to 69,060 million in 2021. After a recovery to 72,694 million in 2022, it declined again to 68,547 million in 2023. This overall decrease over five years indicates a contraction in adjusted capital base, with short-term recoveries not sustained.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio climbed sharply from 0.38 in 2019 to 0.47 in 2020, indicating increased financial leverage on an adjusted basis. Subsequently, the ratio declined to 0.39 in 2021 and remained relatively stable at 0.38 in 2022. In 2023, an increase to 0.42 was observed. The ratio’s movement suggests leverage peaked in 2020 before partially receding, remaining higher than in the initial year of analysis.

The financial data indicates notable fluctuations across various balance sheet metrics over the five-year period from 2019 to 2023. Below is a detailed analysis of the observed trends and patterns.

Total Assets

Total assets decreased significantly from 98,556 million USD in 2019 to 85,158 million USD in 2020, reflecting a sharp contraction likely driven by external market or operational factors. This was followed by a slight increase to 85,373 million in 2021, a more pronounced rise to 89,904 million in 2022, and then a reduction again to 85,987 million in 2023. The overall trend suggests volatility with a net decrease over the period.

Total MPC stockholders’ equity

Stockholders' equity exhibited a downward trend with a considerable decline in 2020 dropping to 22,199 million USD from 33,694 million USD in 2019. This was partially recovered in the subsequent years, reaching 26,206 million in 2021 and 27,715 million in 2022. However, equity fell again to 24,404 million in 2023, showing some instability in the company’s net assets over the period.

Reported Financial Leverage

The reported financial leverage ratio increased markedly from 2.93 in 2019 to 3.84 in 2020, indicating a significant rise in debt relative to equity. This ratio decreased to 3.26 in 2021 and remained relatively stable at 3.24 in 2022, before increasing again to 3.52 in 2023. Overall, the leverage remained elevated compared to 2019, pointing to higher reliance on debt financing or lower equity base throughout most of the timeframe.

Adjusted Total Assets

Adjusted total assets mirrored similar trends to the reported total assets but showed a slight increase to 88,251 million USD in 2021 after dropping in 2020. The adjusted assets peaked at 93,652 million in 2022 before declining to 88,800 million in 2023. This suggests that adjustments made to asset valuation moderated some of the volatility but did not change the general pattern of fluctuations.

Adjusted Total Equity

Adjusted total equity followed a pattern consistent with reported equity but at higher absolute levels, indicating upward valuation adjustments. After falling from 50,367 million in 2019 to 36,579 million in 2020, adjusted equity rebounded to 42,156 million in 2021 and 44,785 million in 2022 before declining to 40,046 million in 2023. The trend shows recovery efforts from the 2020 drop but overall equity levels remain below the initial 2019 position.

Adjusted Financial Leverage

The adjusted financial leverage ratio rose from 1.97 in 2019 to 2.33 in 2020, consistent with the reported leverage ratio findings. It subsequently decreased to 2.09 in both 2021 and 2022, slightly increasing to 2.22 in 2023. Despite some improvement after 2020, adjusted leverage levels remain elevated relative to 2019, indicating persistent financial leverage pressure even after adjustments.

In summary, the company experienced significant volatility in asset base and equity levels primarily driven by a sharp decline in 2020, followed by partial recovery up to 2022 and some weakening again in 2023. Leverage ratios increased substantially in 2020 and have remained elevated, posing heightened financial risk. Adjusted figures reflect a similar trajectory but typically exhibit moderated effects of valuation changes. The overall financial structure points to a period of financial stress with gradual stabilization efforts that face ongoing challenges.

Net Income Attributable to MPC

The net income exhibited significant volatility over the analyzed period. In 2019, net income was positive at $2,637 million, but there was a sharp decline to a loss of $9,826 million in 2020. The subsequent years showed strong recovery with net income rising to $9,738 million in 2021 and peaking at $14,516 million in 2022, before decreasing to $9,681 million in 2023.

Sales and Other Operating Revenues

Sales and other operating revenues declined markedly from $123,949 million in 2019 to $69,779 million in 2020, coinciding with the negative income performance. A recovery trend followed, with revenues increasing to $119,983 million in 2021 and reaching a high of $177,453 million in 2022. However, revenues dropped again to $148,379 million in 2023, indicating some volatility in top-line performance.

Reported Net Profit Margin

The reported net profit margin mirrored the patterns observed in net income and revenues. Starting positive at 2.13% in 2019, it turned deeply negative at -14.08% in 2020. It rebounded to 8.12% in 2021 and stabilized slightly higher at 8.18% in 2022, before declining to 6.52% in 2023, suggesting a decrease in profitability despite substantial revenue levels.

Adjusted Net Income

Adjusted net income followed a similar trend as reported net income, with positive performance in 2019 at $4,981 million, a significant loss of $12,260 million in 2020, and recoveries in 2021 and 2022 at $5,609 million and $17,193 million respectively. The adjusted net income decreased again to $10,030 million in 2023 but remained well above levels seen in 2019.

Adjusted Net Profit Margin

The adjusted net profit margin showed a marked decline in 2020 to -17.57% from 4.02% in 2019, consistent with the adjusted net income losses. The margin then recovered to 4.67% in 2021 and improved significantly to 9.69% in 2022, before decreasing to 6.76% in 2023. This pattern emphasizes fluctuations in core profitability influenced by both operational and market factors across the years.

Net Income (Loss) Attributable to MPC

The net income showed significant volatility over the period. In 2019, the net income was positive at $2,637 million, followed by a substantial loss in 2020 of $9,826 million. The company rebounded strongly in 2021 with net income of $9,738 million, which increased further in 2022 to $14,516 million before declining to $9,681 million in 2023. This pattern indicates a recovery after a severe downturn in 2020, with profits stabilizing at a high level despite a slight decline in the most recent year.

Total MPC Stockholders' Equity

Equity levels decreased markedly from $33,694 million in 2019 to $22,199 million in 2020, reflecting the impact of the loss in that year. Thereafter, equity gradually increased to $26,206 million in 2021 and continued to rise to $27,715 million in 2022, before declining again to $24,404 million in 2023. This suggests recovery efforts partially restored equity, though it did not return to pre-2020 levels and showed some erosion in 2023.

Reported Return on Equity (ROE)

The reported ROE exhibited a highly volatile trend aligned with net income and equity changes. It decreased from a positive 7.83% in 2019 to a negative 44.26% in 2020, consistent with the loss during that year. ROE then sharply increased to 37.16% in 2021 and further to 52.38% in 2022, before decreasing to 39.67% in 2023. The trend reflects strong profitability relative to equity in 2021 and 2022, with some reduction in efficiency in 2023.

Adjusted Net Income (Loss)

The adjusted net income, which likely accounts for non-recurring items or other adjustments, also showed large fluctuations. From a positive $4,981 million in 2019, it swung to a significant adjusted loss of $12,260 million in 2020. Recovery began in 2021 with adjusted net income of $5,609 million, surged to $17,193 million in 2022, and then declined to $10,030 million in 2023. This pattern corroborates the overall volatility seen in reported figures but indicates stronger adjusted profitability in recent years.

Adjusted Total Equity

Adjusted total equity mirrors the reported equity trends but at higher absolute levels, starting at $50,367 million in 2019, declining to $36,579 million in 2020, and then rising through 2021 and 2022 to $42,156 million and $44,785 million, respectively. In 2023, adjusted equity decreased to $40,046 million, suggesting that while the company improved its capital base after 2020, some erosion occurred subsequently.

Adjusted Return on Equity (Adjusted ROE)

The adjusted ROE followed a pattern similar to the reported ROE. It started at 9.89% in 2019, declined steeply to -33.52% in 2020, then improved to 13.31% in 2021. The adjusted ROE more than doubled to 38.39% in 2022 before declining to 25.05% in 2023. The trend indicates significant improvement in adjusted profitability post-2020 losses but with a notable decrease in 2023 productivity relative to equity.

The financial data reveals significant volatility in profitability measures over the observed periods. Net income attributable to the company exhibited a major decline in 2020, resulting in a substantial loss of $9,826 million. This was followed by a remarkable recovery and growth in subsequent years, reaching a peak of $14,516 million in 2022 before decreasing to $9,681 million in 2023. Similarly, adjusted net income mirrored this pattern with a negative value in 2020, followed by sharp growth and fluctuation in the following years.

Total assets showed a general downward trend from 2019 to 2020, decreasing from $98,556 million to $85,158 million, and then stabilized with slight variations up to 2023, ending at $85,987 million. Adjusted total assets followed a similar trajectory, with a notable drop in 2020 and gradual recovery thereafter, peaking at $93,652 million in 2022 before declining to $88,800 million in the final period.

Return on assets (ROA) both reported and adjusted display considerable fluctuations correlating with the profitability trends. Reported ROA declined sharply into negative territory in 2020 at -11.54%, rebounded to a positive 11.41% in 2021, and increased further to 16.15% in 2022 before decreasing to 11.26% in 2023. Adjusted ROA was even more volatile, hitting a trough at -14.39% in 2020, recovering to 6.36% in 2021, surging to 18.36% in 2022, and settling at 11.3% in 2023.

These patterns suggest that the company experienced a significant financial disruption in 2020, likely due to extraordinary or market-wide factors, followed by a strong recovery phase. The alignment between reported and adjusted figures indicates that the adjusted metrics account for items that significantly impacted net income and asset valuations, which could include one-time charges or asset impairments. Asset levels remained relatively stable post-2020, implying no major asset acquisition or divestiture activity during this recovery.