Marathon Petroleum Corp (MPC)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		13.37	13.22	13.73	13.52	14.16	13.03	14.24	14.36	17.27	15.36	12.76	13.08	13.66	10.19	9.06	7.53	8.22	10.04	10.20	13.00
DOH	days	27.29	27.60	26.59	27.00	25.78	28.01	25.62	25.41	21.13	23.76	28.59	27.91	26.73	35.82	40.29	48.48	44.42	36.37	35.77	28.07

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.37
= 27.29

Based on the data provided, the Days of Inventory on Hand (DOH) for Marathon Petroleum Corp has fluctuated over the years. In December 2021, the company reported the highest DOH of 44.42 days, indicating that, on average, it took the company over 44 days to sell its inventory. This may suggest potential issues with inventory management efficiency during that period.

However, the company was able to improve its inventory management over the following quarters, with the DOH decreasing to 21.13 days by December 2022. This significant decrease in DOH suggests that Marathon Petroleum Corp was able to sell its inventory more quickly, potentially improving cash flow and reducing holding costs.

From December 2022 to December 2024, the DOH remained relatively stable, ranging from 21.13 days to 27.29 days. This indicates that Marathon Petroleum Corp maintained a consistent inventory turnover rate during this period, neither significantly increasing nor decreasing its efficiency in managing inventory.

Overall, Marathon Petroleum Corp's DOH trend indicates improvements in inventory management efficiency from 2021 to 2022, followed by a relatively stable performance in subsequent periods. Maintaining a moderate DOH level can help the company optimize its working capital and enhance overall operational performance.