Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Price to Book Value (P/BV) since 2011
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Marathon Petroleum Corp., long-term (investment) activity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
The analysis of the annual financial ratios reveals several notable trends over the five-year period from 2019 to 2023.
- Net Fixed Asset Turnover
- This ratio exhibited a significant decline from 2.72 in 2019 to 1.79 in 2020, indicating reduced efficiency in utilizing fixed assets to generate revenue during that year. However, there was a notable recovery and growth in subsequent years, peaking at 4.98 in 2022 before a slight decrease to 4.23 in 2023. This pattern suggests improved asset utilization after the initial drop, followed by a minor downward adjustment in the latest year.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The trend closely mirrors that of the basic net fixed asset turnover ratio, starting at 2.58 in 2019, falling to 1.72 in 2020, rising sharply to 4.81 in 2022, and then declining marginally to 4.08 in 2023. The inclusion of operating lease assets yields slightly lower ratios across all years, but the overall pattern of decline, recovery, and mild decrease is consistent, indicating similar asset utilization dynamics with leased assets considered.
- Total Asset Turnover
- This ratio follows a comparable pattern of contraction and expansion. It declined from 1.26 in 2019 to 0.82 in 2020, reflecting less efficient use of total assets that year. The subsequent years saw progressive improvement, climbing to 1.97 in 2022. However, a decrease to 1.73 in 2023 indicates a slight setback in asset turnover efficiency in the most recent period.
- Equity Turnover
- Equity turnover shows a reduction from 3.68 in 2019 to 3.14 in 2020, pointing to diminished revenue generation relative to shareholder equity in that year. Subsequently, the ratio rose sharply to reach a high of 6.40 in 2022, signaling improved effectiveness in utilizing equity for revenue. The 2023 figure of 6.08 suggests a minor decline but maintains a high level of turnover compared to earlier years.
Overall, the data reveals a pattern of significant declines in turnover ratios in 2020, likely reflecting challenges impacting asset and equity efficiency that year. Recovery and marked improvement in 2021 and 2022 indicate efforts to regain and enhance operational effectiveness. The slight decreases in 2023 across most ratios suggest possible emerging pressures or stabilization after previous growth. This analysis highlights the company's fluctuating efficiency in utilizing fixed assets, total assets, and equity to generate revenues over the five-year period.
Net Fixed Asset Turnover
Marathon Petroleum Corp., net fixed asset turnover 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) | ||||||
| Sales and other operating revenues | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | ||||||
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
Net fixed asset turnover = Sales and other operating revenues ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Sales and other operating revenues
- The sales and other operating revenues exhibited significant fluctuations over the observed period. Starting at $123,949 million in 2019, there was a steep decline to $69,779 million in 2020, likely reflecting external market pressures or operational challenges. Subsequently, revenues rebounded markedly to $119,983 million in 2021 and peaked at $177,453 million in 2022. However, in 2023, revenues experienced a decline to $148,379 million, indicating a potential stabilization or correction after the previous peak year.
- Property, plant and equipment, net
- The net value of property, plant and equipment showed a consistent downward trend throughout the period. Beginning at $45,615 million in 2019, the value decreased steadily each year to $39,035 million in 2020, then to $37,440 million in 2021, followed by $35,657 million in 2022, and reaching $35,112 million in 2023. This decline might suggest asset depreciation, disposals, or limited investment in fixed assets over these years.
- Net fixed asset turnover
- The net fixed asset turnover ratio demonstrated notable volatility. Starting at 2.72 in 2019, it dropped considerably to 1.79 in 2020, aligning with the reduction in revenues and potentially increased asset base relative to sales. In 2021, the ratio surged to 3.20, followed by a substantial increase to 4.98 in 2022, indicating improved efficiency in using fixed assets to generate sales. In 2023, the turnover ratio declined slightly to 4.23 but remained significantly higher than earlier years, suggesting sustained enhanced asset utilization despite the revenue decrease.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Marathon Petroleum Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right of use assets | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales and other operating revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- There was a significant decline in sales and other operating revenues from 2019 to 2020, dropping approximately 44% from 123,949 million USD to 69,779 million USD. Following this decline, revenues exhibited a strong recovery in 2021, reaching 119,983 million USD, almost returning to pre-2020 levels. The upward trend continued into 2022, with revenues peaking at 177,453 million USD. However, in 2023, a decline was observed again with revenues falling to 148,379 million USD, indicating some volatility in the revenue stream following the peak in 2022.
- Property, Plant and Equipment, Net (including Operating Lease, Right-of-Use Asset)
- The net value of property, plant, and equipment consistently decreased over the five-year period. Starting at 48,074 million USD in 2019, this figure gradually declined each year, reaching 36,345 million USD by 2023. This steady reduction suggests ongoing asset depreciation, disposals, or lack of significant capital investments to offset these decreases.
- Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
- This ratio, which measures how efficiently the company uses its fixed assets to generate sales, showed considerable fluctuations. It plummeted from 2.58 in 2019 to 1.72 in 2020, potentially reflecting reduced asset efficiency amidst the sharp decline in revenues. The ratio rebounded sharply in 2021 to 3.09 and escalated further in 2022 to 4.81, indicating improved leverage of fixed assets to produce revenue. In 2023, the ratio slightly decreased to 4.08 but remained significantly higher than the 2019 level, emphasizing enhanced asset utilization over the examined period despite the recent dip.
Total Asset Turnover
Marathon Petroleum Corp., total asset turnover 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) | ||||||
| Sales and other operating revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Total Asset Turnover, Industry | ||||||
| Energy | ||||||
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
Total asset turnover = Sales and other operating revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales and other operating revenues exhibit significant fluctuations throughout the observed period. Beginning at 123,949 million US dollars in 2019, revenues declined sharply in 2020 to 69,779 million, reflecting a nearly 44% year-over-year decrease. This downturn could be indicative of external economic factors or industry-specific challenges during that year. Subsequently, the revenues rebounded markedly in 2021 to 119,983 million and continued to grow to reach a peak of 177,453 million in 2022. However, a decline occurred in 2023, with revenues decreasing to 148,379 million, which remains substantially higher than the 2019 baseline but signals a retreat from the prior year’s peak performance.
- Total Assets
- Total assets present a downward trend over the period with some periods of stability. Starting at 98,556 million US dollars in 2019, total assets decreased to 85,158 million in 2020 and showed minimal growth in 2021 to 85,373 million. In 2022, there was a moderate increase to 89,904 million, followed by another decline to 85,987 million in 2023. Overall, the total assets decreased by approximately 12.8% from 2019 to 2023, indicating potential asset optimization, divestment, or value erosion over the five-year span.
- Total Asset Turnover
- The total asset turnover ratio exhibits notable variability, reflecting fluctuations in operational efficiency relative to asset base utilization. The ratio started at 1.26 in 2019, dropped significantly to 0.82 in 2020, which aligns with the sharp decrease in revenues. However, the ratio enhanced substantially in 2021, reaching 1.41, and continued to improve to 1.97 in 2022, demonstrating impressive gains in the utilization of assets to generate sales. The ratio softened somewhat in 2023 to 1.73 but remained well above the pre-pandemic level, indicating that the company managed to improve its asset efficiency despite recent revenue decline and asset base contraction.
Equity Turnover
Marathon Petroleum Corp., equity turnover 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) | ||||||
| Sales and other operating revenues | ||||||
| Total MPC stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Equity Turnover, Industry | ||||||
| Energy | ||||||
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
Equity turnover = Sales and other operating revenues ÷ Total MPC stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales and other operating revenues exhibit notable fluctuations over the analyzed periods. Starting at approximately 123.9 billion USD in 2019, there was a sharp decline in 2020 to roughly 69.8 billion USD, representing a significant reduction likely influenced by external or market factors during that year. The revenues partially recovered in 2021 to approximately 120.0 billion USD, followed by a substantial increase in 2022 reaching about 177.5 billion USD, the highest value in the series. However, in 2023, revenues experienced a decline to approximately 148.4 billion USD, suggesting a contraction from the previous year's peak yet remaining above the 2019 and 2021 levels.
- Total Stockholders' Equity
- Total stockholders’ equity shows a decreasing trend from 2019 through 2020, dropping from around 33.7 billion USD to 22.2 billion USD, indicating a considerable reduction in the company’s equity base during this period. In 2021, equity saw a moderate increase to about 26.2 billion USD and continued to rise slightly in 2022 to approximately 27.7 billion USD. However, in 2023, equity declined again to roughly 24.4 billion USD. Overall, the equity levels in 2023 are lower than those in 2019, suggesting some erosion of the equity base over the five-year period.
- Equity Turnover Ratio
- The equity turnover ratio demonstrates an overall upward trend, beginning at 3.68 in 2019 and decreasing to 3.14 in 2020, reflecting the lower sales relative to equity that year. In 2021, the ratio increased substantially to 4.58, indicating improved efficiency in using equity to generate sales. This positive momentum continued with a sharp rise to 6.4 in 2022, the highest ratio observed, pointing to strong operational performance or greater leverage of equity in generating revenue. In 2023, the ratio slightly declined to 6.08, but remained significantly higher than the 2019 level, implying sustained improved equity utilization despite the partial revenue decrease.