Stock Analysis on Net
Stock Analysis on Net

Marathon Petroleum Corp. (NYSE:MPC)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Marathon Petroleum Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 23.90% = 5.67% × 4.22
Jun 30, 2024 33.69% = 8.43% × 4.00
Mar 31, 2024 34.44% = 9.23% × 3.73
Dec 31, 2023 39.67% = 11.26% × 3.52
Sep 30, 2023 44.66% = 12.84% × 3.48
Jun 30, 2023 49.58% = 14.75% × 3.36
Mar 31, 2023 61.04% = 18.84% × 3.24
Dec 31, 2022 52.38% = 16.15% × 3.24
Sep 30, 2022 45.50% = 13.34% × 3.41
Jun 30, 2022 31.12% = 8.46% × 3.68
Mar 31, 2022 45.16% = 11.90% × 3.79
Dec 31, 2021 37.16% = 11.41% × 3.26
Sep 30, 2021 32.71% = 10.36% × 3.16
Jun 30, 2021 26.52% = 8.13% × 3.26
Mar 31, 2021 -3.86% = -0.96% × 4.01
Dec 31, 2020 -44.26% = -11.54% × 3.84
Sep 30, 2020 -43.06% = -11.51% × 3.74
Jun 30, 2020 -32.38% = -9.09% × 3.56
Mar 31, 2020 -27.36% = -7.63% × 3.58
Dec 31, 2019 7.83% = 2.68% × 2.93
Sep 30, 2019 — = — × 2.91
Jun 30, 2019 — = — × 2.83
Mar 31, 2019 — = — × 2.84

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Marathon Petroleum Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 23.90% = 3.19% × 1.78 × 4.22
Jun 30, 2024 33.69% = 4.86% × 1.73 × 4.00
Mar 31, 2024 34.44% = 5.40% × 1.71 × 3.73
Dec 31, 2023 39.67% = 6.52% × 1.73 × 3.52
Sep 30, 2023 44.66% = 7.60% × 1.69 × 3.48
Jun 30, 2023 49.58% = 8.13% × 1.81 × 3.36
Mar 31, 2023 61.04% = 9.41% × 2.00 × 3.24
Dec 31, 2022 52.38% = 8.18% × 1.97 × 3.24
Sep 30, 2022 45.50% = 6.92% × 1.93 × 3.41
Jun 30, 2022 31.12% = 5.13% × 1.65 × 3.68
Mar 31, 2022 45.16% = 8.00% × 1.49 × 3.79
Dec 31, 2021 37.16% = 8.12% × 1.41 × 3.26
Sep 30, 2021 32.71% = 9.01% × 1.15 × 3.16
Jun 30, 2021 26.52% = 8.74% × 0.93 × 3.26
Mar 31, 2021 -3.86% = -1.19% × 0.81 × 4.01
Dec 31, 2020 -44.26% = -14.08% × 0.82 × 3.84
Sep 30, 2020 -43.06% = -11.66% × 0.99 × 3.74
Jun 30, 2020 -32.38% = -7.96% × 1.14 × 3.56
Mar 31, 2020 -27.36% = -5.59% × 1.37 × 3.58
Dec 31, 2019 7.83% = 2.13% × 1.26 × 2.93
Sep 30, 2019 — = — × — × 2.91
Jun 30, 2019 — = — × — × 2.83
Mar 31, 2019 — = — × — × 2.84

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Marathon Petroleum Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 5.67% = 3.19% × 1.78
Jun 30, 2024 8.43% = 4.86% × 1.73
Mar 31, 2024 9.23% = 5.40% × 1.71
Dec 31, 2023 11.26% = 6.52% × 1.73
Sep 30, 2023 12.84% = 7.60% × 1.69
Jun 30, 2023 14.75% = 8.13% × 1.81
Mar 31, 2023 18.84% = 9.41% × 2.00
Dec 31, 2022 16.15% = 8.18% × 1.97
Sep 30, 2022 13.34% = 6.92% × 1.93
Jun 30, 2022 8.46% = 5.13% × 1.65
Mar 31, 2022 11.90% = 8.00% × 1.49
Dec 31, 2021 11.41% = 8.12% × 1.41
Sep 30, 2021 10.36% = 9.01% × 1.15
Jun 30, 2021 8.13% = 8.74% × 0.93
Mar 31, 2021 -0.96% = -1.19% × 0.81
Dec 31, 2020 -11.54% = -14.08% × 0.82
Sep 30, 2020 -11.51% = -11.66% × 0.99
Jun 30, 2020 -9.09% = -7.96% × 1.14
Mar 31, 2020 -7.63% = -5.59% × 1.37
Dec 31, 2019 2.68% = 2.13% × 1.26
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in profitability measured by net profit margin ratio.