Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Marathon Petroleum Corp., solvency ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Debt to Equity Ratio
- The debt to equity ratio increased significantly from 0.86 in 2019 to a peak of 1.42 in 2020, indicating a higher reliance on debt financing relative to equity during that year. Subsequently, it declined to 0.97 in 2021 and remained relatively stable in 2022 before rising slightly again to 1.12 in 2023. Including operating lease liabilities, the trend is similar but with slightly higher values across all periods, reaching 1.17 in 2023.
- Debt to Capital Ratio
- This ratio followed a pattern resembling the debt to equity ratio, rising from 0.46 in 2019 to 0.59 in 2020, and then moderating to 0.49 in 2021 and 2022. A small increase was observed in 2023, reaching 0.53. With the inclusion of operating lease liabilities, the ratios are marginally higher, peaking at 0.60 in 2020 and ending at 0.54 in 2023.
- Debt to Assets Ratio
- The debt to assets ratio exhibited an increase from 0.29 in 2019 to 0.37 in 2020, indicating a larger portion of assets financed by debt. This ratio then decreased to 0.30 in 2021 and sustained similar levels through 2022, before a slight upward adjustment to 0.32 in 2023. Accounting for operating lease liabilities results in slightly higher ratios, with the highest value being 0.39 in 2020 and settling at 0.33 in 2023.
- Financial Leverage Ratio
- Financial leverage rose sharply from 2.93 in 2019 to 3.84 in 2020, reflecting increased debt relative to equity. It then declined to 3.26 in 2021 and remained stable in 2022, before increasing again to 3.52 in 2023. This suggests some fluctuation in the company's use of debt in its capital structure over the observed period.
- Interest Coverage Ratio
- The interest coverage ratio shows notable volatility. It was at a positive level of 4.5 in 2019, dropped sharply to a negative -9.21 in 2020, indicating an inability to cover interest expenses that year. Recovery began in 2021 with a ratio of 3.22, followed by a substantial improvement to 18.13 in 2022. The ratio decreased to 12.06 in 2023 but remained at a comfortable level above 10, signaling improved earnings relative to interest obligations after the 2020 downturn.
- Fixed Charge Coverage Ratio
- The fixed charge coverage ratio mirrored the interest coverage trend, declining from 3.13 in 2019 to -5.84 in 2020, reflecting challenges in covering fixed charges during that year. Improvement occurred in subsequent years, with the ratio recovering to 2.52 in 2021 and rising sharply to 13.15 in 2022. Despite decreasing to 8.98 in 2023, the ratio continued to indicate strong coverage capacity relative to fixed charges following the 2020 loss period.
Debt Ratios
Coverage Ratios
Debt to Equity
Marathon Petroleum Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt due within one year | 1,954) | 1,066) | 571) | 2,854) | 711) | |
| Long-term debt due after one year | 25,329) | 25,634) | 24,968) | 28,730) | 28,127) | |
| Total debt | 27,283) | 26,700) | 25,539) | 31,584) | 28,838) | |
| Total MPC stockholders’ equity | 24,404) | 27,715) | 26,206) | 22,199) | 33,694) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.12 | 0.96 | 0.97 | 1.42 | 0.86 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | 0.13 | 0.15 | 0.23 | 0.34 | — | |
| ConocoPhillips | 0.38 | 0.35 | 0.44 | 0.51 | — | |
| Exxon Mobil Corp. | 0.20 | 0.21 | 0.28 | 0.43 | — | |
| Occidental Petroleum Corp. | 0.65 | 0.66 | 1.46 | 1.95 | — | |
| Debt to Equity, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.23 | 0.23 | 0.34 | 0.48 | — | |
| Debt to Equity, Industry | ||||||
| Energy | 0.24 | 0.25 | 0.37 | 0.52 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Total MPC stockholders’ equity
= 27,283 ÷ 24,404 = 1.12
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited an initial increase from 28,838 million US dollars in 2019 to 31,584 million in 2020. Following this, a notable decline occurred in 2021 to 25,539 million US dollars. Subsequently, total debt levels showed a moderate uptrend in the subsequent two years, reaching 26,700 million in 2022 and 27,283 million in 2023. Overall, after peaking in 2020, the total debt decreased and then stabilized at a level lower than the 2019 figure.
- Total Stockholders’ Equity
- Stockholders’ equity experienced a significant decline from 33,694 million US dollars in 2019 to 22,199 million in 2020, marking a substantial drop. Following this decrease, equity began to recover, increasing to 26,206 million in 2021 and further to 27,715 million in 2022. However, the equity value decreased again in 2023 to 24,404 million US dollars. This pattern indicates volatility in equity, with a steep decrease in 2020, partial recovery over the next two years, and a slight decline in the most recent year.
- Debt to Equity Ratio
- The debt to equity ratio sharply rose from 0.86 in 2019 to 1.42 in 2020, coinciding with the sharp decrease in equity and an increase in debt during the same period. Thereafter, the ratio decreased significantly to 0.97 in 2021 and slightly further to 0.96 in 2022, reflecting relative improvement in the company’s capital structure. In 2023, the ratio rose again to 1.12, indicating some increase in leverage compared to the previous two years but still remaining below the 2020 peak. This trend suggests sensitivity of financial leverage to changes in equity levels.
Debt to Equity (including Operating Lease Liability)
Marathon Petroleum Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt due within one year | 1,954) | 1,066) | 571) | 2,854) | 711) | |
| Long-term debt due after one year | 25,329) | 25,634) | 24,968) | 28,730) | 28,127) | |
| Total debt | 27,283) | 26,700) | 25,539) | 31,584) | 28,838) | |
| Current operating lease liabilities | 454) | 368) | 438) | 497) | 604) | |
| Long-term operating lease liabilities | 764) | 841) | 927) | 1,014) | 1,875) | |
| Total debt (including operating lease liability) | 28,501) | 27,909) | 26,904) | 33,095) | 31,317) | |
| Total MPC stockholders’ equity | 24,404) | 27,715) | 26,206) | 22,199) | 33,694) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.17 | 1.01 | 1.03 | 1.49 | 0.93 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.16 | 0.17 | 0.25 | 0.37 | — | |
| ConocoPhillips | 0.40 | 0.36 | 0.45 | 0.54 | — | |
| Exxon Mobil Corp. | 0.23 | 0.24 | 0.31 | 0.46 | — | |
| Occidental Petroleum Corp. | 0.69 | 0.69 | 1.49 | 2.01 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.26 | 0.26 | 0.37 | 0.52 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Energy | 0.27 | 0.28 | 0.40 | 0.55 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total MPC stockholders’ equity
= 28,501 ÷ 24,404 = 1.17
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt experienced a fluctuating trend over the five-year period. Starting at $31,317 million in 2019, it increased to a peak of $33,095 million in 2020, reflecting a significant rise in liabilities. Following this, the debt decreased sharply to $26,904 million in 2021, suggesting a period of debt reduction or repayment. However, in 2022 and 2023, the debt levels modestly increased again to $27,909 million and $28,501 million respectively, indicating a stabilization at a slightly higher level than 2021 but still below the 2019 and 2020 highs.
- Total Stockholders’ Equity
- Stockholders' equity showed a notable decline between 2019 and 2020, dropping from $33,694 million to $22,199 million, which may indicate losses or significant equity reductions in 2020. After 2020, equity recovered to some extent, rising to $26,206 million in 2021 and further to $27,715 million in 2022. Nevertheless, it then declined again to $24,404 million in 2023, suggesting some volatility in the equity base over the period with an overall downward trend from 2019 levels.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt to equity ratio increased sharply from 0.93 in 2019 to 1.49 in 2020, reflecting the combined effect of increased debt and decreased equity during that year. This ratio then improved significantly in 2021 and 2022, declining to 1.03 and 1.01 respectively, indicating a more balanced capital structure with reduced leverage. In 2023, the ratio increased again to 1.17, signaling a slight return to higher leverage but still lower than the peak in 2020.
Debt to Capital
Marathon Petroleum Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt due within one year | 1,954) | 1,066) | 571) | 2,854) | 711) | |
| Long-term debt due after one year | 25,329) | 25,634) | 24,968) | 28,730) | 28,127) | |
| Total debt | 27,283) | 26,700) | 25,539) | 31,584) | 28,838) | |
| Total MPC stockholders’ equity | 24,404) | 27,715) | 26,206) | 22,199) | 33,694) | |
| Total capital | 51,687) | 54,415) | 51,745) | 53,783) | 62,532) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.53 | 0.49 | 0.49 | 0.59 | 0.46 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | 0.11 | 0.13 | 0.18 | 0.25 | — | |
| ConocoPhillips | 0.28 | 0.26 | 0.31 | 0.34 | — | |
| Exxon Mobil Corp. | 0.17 | 0.17 | 0.22 | 0.30 | — | |
| Occidental Petroleum Corp. | 0.39 | 0.40 | 0.59 | 0.66 | — | |
| Debt to Capital, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.19 | 0.19 | 0.26 | 0.33 | — | |
| Debt to Capital, Industry | ||||||
| Energy | 0.20 | 0.20 | 0.27 | 0.34 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 27,283 ÷ 51,687 = 0.53
2 Click competitor name to see calculations.
The financial data indicates fluctuations in the company's leverage and capital structure over the five-year period.
- Total Debt
- Total debt increased from 28,838 million USD in 2019 to a peak of 31,584 million USD in 2020, followed by a significant decrease to 25,539 million USD in 2021. Subsequently, total debt rose moderately to 26,700 million USD in 2022 and further to 27,283 million USD in 2023. The initial increase in 2020 may reflect external pressures or strategic borrowing, while the reduction in 2021 indicates debt management or repayment efforts before a slight rebound in the last two years.
- Total Capital
- Total capital began at 62,532 million USD in 2019 and declined steadily to 53,783 million USD in 2020. This downward trend continued through 2021 and 2023 with minor fluctuations, reaching 51,687 million USD in 2023. This consistent decrease in total capital suggests either capital base erosion, asset base reductions, or selective capital deployment during the period.
- Debt to Capital Ratio
- The debt to capital ratio increased sharply from 0.46 in 2019 to 0.59 in 2020, indicating a heavier reliance on debt relative to the company's capital base. The ratio then declined to 0.49 in 2021 and remained stable in 2022, reflecting improved capital structure balance. However, it rose again to 0.53 in 2023, pointing to increased financial leverage. Overall, the ratio exhibits volatility with a peak in 2020, followed by partial recovery and a subsequent upward trend.
In summary, the company displayed a temporary increase in debt levels and leverage in 2020, possibly due to external or strategic factors, followed by measures that reduced debt and strengthened capital structure in 2021 and 2022. The slight deterioration in leverage in 2023 warrants attention to ensure sustainable capital management going forward.
Debt to Capital (including Operating Lease Liability)
Marathon Petroleum Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt due within one year | 1,954) | 1,066) | 571) | 2,854) | 711) | |
| Long-term debt due after one year | 25,329) | 25,634) | 24,968) | 28,730) | 28,127) | |
| Total debt | 27,283) | 26,700) | 25,539) | 31,584) | 28,838) | |
| Current operating lease liabilities | 454) | 368) | 438) | 497) | 604) | |
| Long-term operating lease liabilities | 764) | 841) | 927) | 1,014) | 1,875) | |
| Total debt (including operating lease liability) | 28,501) | 27,909) | 26,904) | 33,095) | 31,317) | |
| Total MPC stockholders’ equity | 24,404) | 27,715) | 26,206) | 22,199) | 33,694) | |
| Total capital (including operating lease liability) | 52,905) | 55,624) | 53,110) | 55,294) | 65,011) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.54 | 0.50 | 0.51 | 0.60 | 0.48 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.14 | 0.15 | 0.20 | 0.27 | — | |
| ConocoPhillips | 0.28 | 0.26 | 0.31 | 0.35 | — | |
| Exxon Mobil Corp. | 0.19 | 0.19 | 0.24 | 0.32 | — | |
| Occidental Petroleum Corp. | 0.41 | 0.41 | 0.60 | 0.67 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.20 | 0.21 | 0.27 | 0.34 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Energy | 0.21 | 0.22 | 0.28 | 0.36 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 28,501 ÷ 52,905 = 0.54
2 Click competitor name to see calculations.
The analyzed financial data reflects the company's leverage and capital structure over the five-year period from the end of 2019 through the end of 2023.
- Total Debt (including operating lease liability)
- The total debt increased moderately from $31,317 million at the end of 2019 to a peak of $33,095 million at the end of 2020. Following this peak, the debt level decreased significantly to $26,904 million at the end of 2021, then experienced a slight increase in 2022 to $27,909 million and further to $28,501 million in 2023. Overall, the debt demonstrates a fluctuating pattern with a notable reduction after 2020 but stabilizing near $28,000 million by 2023.
- Total Capital (including operating lease liability)
- Total capital showed a declining trend over the period. It dropped from $65,011 million in 2019 to $55,294 million in 2020, continuing to decrease to $53,110 million in 2021. Although there was a slight recovery in 2022 to $55,624 million, the capital declined again to $52,905 million in 2023. This pattern indicates a reduction in the overall capital base, with minor fluctuations in the later years.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio rose sharply from 0.48 in 2019 to 0.60 in 2020, reflecting increased leverage or reduced capital during that year. Subsequently, the ratio declined to 0.51 in 2021 and slightly further to 0.50 in 2022, indicating a movement toward a more balanced capital structure. However, the ratio increased again to 0.54 in 2023. These variations suggest changes in financing strategy or capital base adjustments, with leverage peaking in 2020 and partially receding thereafter but remaining elevated compared to 2019.
In summary, the financial data reveals a peak in leverage levels in 2020, followed by efforts to reduce debt and stabilize capital. Despite some recovery in capital levels in 2022, the overall trend points to a decrease in total capital and a moderately elevated debt-to-capital ratio by 2023 compared to the beginning of the period. This pattern may imply cautious management of the capital structure amid changing financial conditions.
Debt to Assets
Marathon Petroleum Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt due within one year | 1,954) | 1,066) | 571) | 2,854) | 711) | |
| Long-term debt due after one year | 25,329) | 25,634) | 24,968) | 28,730) | 28,127) | |
| Total debt | 27,283) | 26,700) | 25,539) | 31,584) | 28,838) | |
| Total assets | 85,987) | 89,904) | 85,373) | 85,158) | 98,556) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.32 | 0.30 | 0.30 | 0.37 | 0.29 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | 0.08 | 0.09 | 0.13 | 0.18 | — | |
| ConocoPhillips | 0.20 | 0.18 | 0.22 | 0.25 | — | |
| Exxon Mobil Corp. | 0.11 | 0.11 | 0.14 | 0.20 | — | |
| Occidental Petroleum Corp. | 0.27 | 0.27 | 0.39 | 0.45 | — | |
| Debt to Assets, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.13 | 0.13 | 0.17 | 0.23 | — | |
| Debt to Assets, Industry | ||||||
| Energy | 0.13 | 0.14 | 0.18 | 0.24 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 27,283 ÷ 85,987 = 0.32
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's indebtedness and asset base over the five-year period from 2019 to 2023.
- Total Debt
- The total debt exhibited an overall increasing trajectory from 2019 through 2020, rising from approximately $28.8 billion to $31.6 billion. This was followed by a substantial reduction in 2021 to around $25.5 billion. Subsequently, debt levels incrementally increased in 2022 and 2023, reaching approximately $27.3 billion by the end of 2023.
- Total Assets
- Total assets decreased sharply in 2020 compared to 2019, dropping from approximately $98.6 billion to $85.2 billion. After stabilizing in 2021 at around $85.4 billion, the asset base increased moderately in 2022 to about $89.9 billion, before declining again in 2023 to roughly $86.0 billion.
- Debt to Assets Ratio
- The debt to assets ratio rose significantly in 2020 to 0.37 from 0.29 in 2019, indicating greater leverage during this period. In 2021, this ratio declined sharply to 0.30, remaining stable into 2022. However, a slight increase was observed in 2023, with the ratio rising to 0.32.
Overall, the company experienced heightened leverage in 2020, which was partially mitigated in the following year through debt reduction and stabilization of assets. The moderate uptick in both debt and leverage ratio in 2023 suggests a cautious increase in indebtedness relative to assets. The asset base faced volatility, with a notable decrease during the early pandemic period and partial recovery afterward, but did not return to pre-2019 levels by 2023.
Debt to Assets (including Operating Lease Liability)
Marathon Petroleum Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt due within one year | 1,954) | 1,066) | 571) | 2,854) | 711) | |
| Long-term debt due after one year | 25,329) | 25,634) | 24,968) | 28,730) | 28,127) | |
| Total debt | 27,283) | 26,700) | 25,539) | 31,584) | 28,838) | |
| Current operating lease liabilities | 454) | 368) | 438) | 497) | 604) | |
| Long-term operating lease liabilities | 764) | 841) | 927) | 1,014) | 1,875) | |
| Total debt (including operating lease liability) | 28,501) | 27,909) | 26,904) | 33,095) | 31,317) | |
| Total assets | 85,987) | 89,904) | 85,373) | 85,158) | 98,556) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.33 | 0.31 | 0.32 | 0.39 | 0.32 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.10 | 0.11 | 0.15 | 0.20 | — | |
| ConocoPhillips | 0.20 | 0.18 | 0.23 | 0.26 | — | |
| Exxon Mobil Corp. | 0.13 | 0.13 | 0.16 | 0.22 | — | |
| Occidental Petroleum Corp. | 0.28 | 0.29 | 0.40 | 0.47 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.14 | 0.14 | 0.19 | 0.24 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Energy | 0.15 | 0.15 | 0.20 | 0.25 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 28,501 ÷ 85,987 = 0.33
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt exhibited an overall fluctuating trend during the five-year period. Starting at $31,317 million in 2019, it increased to $33,095 million in 2020. Subsequently, it decreased significantly to $26,904 million in 2021. However, debt levels rose again to $27,909 million in 2022 and slightly increased further to $28,501 million in 2023. This sequence suggests periods of both debt reduction and moderate accumulation.
- Total Assets
- Total assets showed variability over the timeframe. Beginning at $98,556 million in 2019, assets declined to $85,158 million in 2020, followed by a marginal increase to $85,373 million in 2021. This was succeeded by a more notable rise to $89,904 million in 2022. In 2023, assets fell again to $85,987 million. The pattern reflects asset base contraction during 2020, partial recovery in the next two years, and a subsequent downturn in the latest year.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio fluctuated within a relatively narrow range throughout the period. It increased from 0.32 in 2019 to a peak of 0.39 in 2020, indicating higher leverage relative to assets in that year. Following this, the ratio decreased back to 0.32 in 2021 and continued to slightly decline to 0.31 in 2022. By 2023, the ratio rose modestly again to 0.33. The changes in this ratio correspond with variations in both total debt and total assets, reflecting ongoing adjustments in the company's leverage position.
Financial Leverage
Marathon Petroleum Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 85,987) | 89,904) | 85,373) | 85,158) | 98,556) | |
| Total MPC stockholders’ equity | 24,404) | 27,715) | 26,206) | 22,199) | 33,694) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.52 | 3.24 | 3.26 | 3.84 | 2.93 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | 1.63 | 1.62 | 1.72 | 1.82 | — | |
| ConocoPhillips | 1.95 | 1.95 | 2.00 | 2.10 | — | |
| Exxon Mobil Corp. | 1.84 | 1.89 | 2.01 | 2.12 | — | |
| Occidental Petroleum Corp. | 2.45 | 2.41 | 3.69 | 4.31 | — | |
| Financial Leverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.81 | 1.83 | 1.99 | 2.12 | — | |
| Financial Leverage, Industry | ||||||
| Energy | 1.84 | 1.86 | 2.02 | 2.17 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Total MPC stockholders’ equity
= 85,987 ÷ 24,404 = 3.52
2 Click competitor name to see calculations.
- Total assets
- Total assets showed a notable decline from 98,556 million USD at the end of 2019 to 85,158 million USD in 2020, reflecting a contraction during that period. From 2020 onward, assets remained relatively stable with a slight increase to 85,373 million USD in 2021 and further to 89,904 million USD in 2022 before declining again to 85,987 million USD by the end of 2023. Overall, total assets demonstrate some volatility with a peak in 2019, a trough in 2020, and moderate fluctuations thereafter.
- Total MPC stockholders’ equity
- Stockholders' equity experienced a significant reduction from 33,694 million USD in 2019 to 22,199 million USD in 2020, marking a steep decline. This was followed by a partial recovery in 2021 and 2022, with equity rising to 26,206 million USD and 27,715 million USD respectively. However, equity decreased again to 24,404 million USD by the end of 2023. The pattern indicates a considerable drop in equity in 2020 with some recovery in subsequent years, although equity levels remained below the 2019 peak.
- Financial leverage
- Financial leverage increased significantly from 2.93 in 2019 to 3.84 in 2020, indicating a higher level of debt relative to equity following the decline in stockholders’ equity. Subsequently, leverage declined to 3.26 in 2021 and remained relatively stable at 3.24 in 2022 before rising again to 3.52 in 2023. This trend suggests increased reliance on debt financing, particularly in 2020 and 2023, reflecting changes in the company’s capital structure that correspond with the fluctuations observed in equity and asset values.
Interest Coverage
Marathon Petroleum Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to MPC | 9,681) | 14,516) | 9,738) | (9,826) | 2,637) | |
| Add: Net income attributable to noncontrolling interest | 1,491) | 1,534) | 1,263) | (151) | 618) | |
| Less: Income from discontinued operations, net of tax | —) | 72) | 8,448) | 1,205) | —) | |
| Add: Income tax expense | 2,817) | 4,491) | 264) | (2,430) | 1,074) | |
| Add: Interest expense, net of interest capitalized | 1,265) | 1,195) | 1,267) | 1,333) | 1,238) | |
| Earnings before interest and tax (EBIT) | 15,254) | 21,664) | 4,084) | (12,279) | 5,567) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 12.06 | 18.13 | 3.22 | -9.21 | 4.50 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | 64.08 | 97.27 | 31.39 | -9.69 | — | |
| ConocoPhillips | 21.88 | 36.07 | 15.38 | -2.90 | — | |
| Exxon Mobil Corp. | 63.17 | 98.43 | 33.98 | -23.94 | — | |
| Occidental Petroleum Corp. | 7.80 | 14.71 | 3.30 | -10.03 | — | |
| Interest Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 35.53 | 54.91 | 17.67 | -12.51 | — | |
| Interest Coverage, Industry | ||||||
| Energy | 32.12 | 48.83 | 16.26 | -13.30 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 15,254 ÷ 1,265 = 12.06
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT experienced significant fluctuations over the five-year period. Starting at $5,567 million in 2019, it declined sharply to a negative $12,279 million in 2020, indicating a substantial operational loss during that year. This was followed by a recovery in 2021, with EBIT rising to $4,084 million. The upward trend accelerated in 2022, reaching a peak of $21,664 million, before decreasing to $15,254 million in 2023. Overall, despite volatility, the EBIT shows a recovery trend after the major downturn in 2020, with a notable peak in 2022.
- Interest expense, net of interest capitalized
- The net interest expense remained relatively stable across the period under review, fluctuating narrowly between $1,195 million and $1,333 million. This consistency indicates a steady cost related to debt servicing without major increases or reductions in interest obligations.
- Interest coverage ratio
- The interest coverage ratio, which measures the company's ability to meet interest obligations from operating earnings, mirrored the EBIT volatility closely. It was 4.5 in 2019, reflecting a comfortable margin. However, it plunged to a negative ratio of -9.21 in 2020, consistent with the EBIT loss. The ratio improved to 3.22 in 2021, indicating partial recovery, followed by a substantial rise to 18.13 in 2022, signaling very strong coverage capacity. In 2023, it decreased to 12.06 but remained at a healthy level. This demonstrates that after the severe disruptions in 2020, the company restored and even strengthened its ability to cover interest expenses from earnings.
Fixed Charge Coverage
Marathon Petroleum Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to MPC | 9,681) | 14,516) | 9,738) | (9,826) | 2,637) | |
| Add: Net income attributable to noncontrolling interest | 1,491) | 1,534) | 1,263) | (151) | 618) | |
| Less: Income from discontinued operations, net of tax | —) | 72) | 8,448) | 1,205) | —) | |
| Add: Income tax expense | 2,817) | 4,491) | 264) | (2,430) | 1,074) | |
| Add: Interest expense, net of interest capitalized | 1,265) | 1,195) | 1,267) | 1,333) | 1,238) | |
| Earnings before interest and tax (EBIT) | 15,254) | 21,664) | 4,084) | (12,279) | 5,567) | |
| Add: Operating lease cost | 489) | 490) | 581) | 658) | 793) | |
| Earnings before fixed charges and tax | 15,743) | 22,154) | 4,665) | (11,621) | 6,360) | |
| Interest expense, net of interest capitalized | 1,265) | 1,195) | 1,267) | 1,333) | 1,238) | |
| Operating lease cost | 489) | 490) | 581) | 658) | 793) | |
| Fixed charges | 1,754) | 1,685) | 1,848) | 1,991) | 2,031) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 8.98 | 13.15 | 2.52 | -5.84 | 3.13 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Chevron Corp. | 9.57 | 18.28 | 8.43 | -1.29 | — | |
| ConocoPhillips | 17.14 | 28.76 | 11.94 | -1.79 | — | |
| Exxon Mobil Corp. | 19.68 | 31.21 | 13.55 | -9.65 | — | |
| Occidental Petroleum Corp. | 3.09 | 6.42 | 1.78 | -4.00 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 11.61 | 20.00 | 7.82 | -4.39 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Energy | 10.33 | 17.37 | 7.02 | -4.45 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 15,743 ÷ 1,754 = 8.98
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax displayed significant volatility over the five-year period. Starting at 6,360 million US dollars in 2019, it declined sharply to a negative value of -11,621 million in 2020, indicating a substantial operating loss or adverse impact during that year. The metric rebounded to 4,665 million in 2021, followed by a notable increase to a peak of 22,154 million in 2022. However, in 2023, earnings decreased to 15,743 million, although they remained at a substantially higher level compared to 2019 and 2021, signaling improved operational profitability post-2020.
- Fixed charges
- Fixed charges showed a gradual decline from 2,031 million US dollars in 2019 to 1,685 million in 2022, suggesting some reduction in interest expenses or similar obligations. In 2023, fixed charges slightly increased to 1,754 million, which is still lower than the 2019 figure. The overall trend in fixed charges appears relatively stable with a mild decrease over the period.
- Fixed charge coverage ratio
- The fixed charge coverage ratio, which measures the ability to cover fixed charges with earnings, mirrored the volatility in earnings before fixed charges and tax. It started at a healthy ratio of 3.13 in 2019, dropped sharply to -5.84 in 2020, reflecting the negative earnings and inability to cover fixed charges that year. The ratio recovered to 2.52 in 2021, increased substantially to 13.15 in 2022 indicating very strong coverage capacity, before declining to 8.98 in 2023. Despite the decrease in 2023, the coverage ratio remained robust relative to the initial years, illustrating improved financial strength after the 2020 downturn.