Marathon Petroleum Corp (MPC)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	13.19	13.80	17.18	13.66	8.22
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	38.79	12.47	11.71	9.56	5.54

Inventory Turnover:

Marathon Petroleum Corp's inventory turnover has shown a positive trend over the past five years, increasing from 8.22 in 2020 to 13.19 in 2024. This indicates that the company is managing its inventory more efficiently, selling or using up its inventory at a faster rate. A higher inventory turnover ratio is generally preferred as it signifies that the company is selling goods quickly and not holding excessive levels of inventory.

Receivables Turnover:

The receivables turnover ratio is not available for Marathon Petroleum Corp for the period under consideration. This could mean that the company does not provide goods or services on credit or that information regarding receivables turnover is not disclosed in the data provided.

Payables Turnover:

Similar to receivables turnover, information regarding payables turnover is not available for Marathon Petroleum Corp for the period under consideration. This ratio would have provided insights into how quickly the company is paying off its suppliers.

Working Capital Turnover:

Marathon Petroleum Corp's working capital turnover has seen a significant increase from 5.54 in 2020 to 38.79 in 2024. This indicates that the company is generating more revenue relative to its working capital, reflecting improved efficiency in utilizing its current assets to support sales. A higher working capital turnover ratio suggests better utilization of resources and more effective management of working capital.

Overall, the analysis of Marathon Petroleum Corp's activity ratios suggests a positive trend in inventory turnover and working capital turnover, indicating improved efficiency in managing inventory and utilizing working capital to generate revenue.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	27.66	26.45	21.24	26.73	44.42
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Over the past five years, Marathon Petroleum Corp has shown a decreasing trend in its Days of Inventory on Hand (DOH) ratio, indicating an improvement in managing its inventory levels efficiently. The ratio decreased from 44.42 days in 2020 to 27.66 days in 2024. This suggests that the company is now able to sell and replace its inventory more quickly, potentially leading to cost savings and improved liquidity.

In terms of Days of Sales Outstanding (DSO) and Number of Days of Payables, the data provided indicate that no specific values are available for these metrics for the years 2020 to 2024. This lack of information makes it challenging to assess the efficiency of Marathon Petroleum Corp in collecting receivables and managing payables during this period.

Overall, while the decreasing trend in Days of Inventory on Hand is a positive sign of effective inventory management, additional information on Days of Sales Outstanding and Number of Days of Payables would provide a more comprehensive view of the company's overall activity ratio performance over the years.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	4.83	3.10	1.79
Total asset turnover	1.78	1.74	1.98	1.41	0.82

Based on the data provided, Marathon Petroleum Corp's long-term activity ratios show a significant improvement over the years.

1. Fixed Asset Turnover:
- In December 2020, the Fixed Asset Turnover ratio was 1.79, indicating that the company generated $1.79 in revenue for every dollar invested in fixed assets.
- By December 2024, this ratio had increased to 4.83, demonstrating a substantial improvement in the efficiency of utilizing fixed assets to generate revenue.
- The absence of data for December 2023 suggests a break in the trend or a missing value that could affect the overall analysis.

2. Total Asset Turnover:
- The Total Asset Turnover ratio reflects the company's ability to generate sales from its total assets.
- In December 2020, the ratio was 0.82, indicating that Marathon Petroleum Corp generated $0.82 in revenue for every dollar of total assets.
- By December 2024, this ratio had increased to 1.78, showing an enhancement in the utilization of total assets to generate sales.
- The fluctuations in this ratio over the years may indicate changes in the company's asset management efficiency and revenue generation strategies.

Overall, the continuous improvement in both Fixed Asset Turnover and Total Asset Turnover ratios suggests that Marathon Petroleum Corp has enhanced its operational efficiency and asset utilization over the years, which can be considered positive indicators of the company's long-term sustainability and profitability.