Marathon Petroleum Corp (MPC)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		14.16	13.10	14.33	14.53	17.54	15.59	13.04	13.39	14.03	10.66	9.69	8.66	10.32	12.67	12.84	16.10	11.74	11.84	11.83	9.85
DOH	days	25.78	27.86	25.47	25.13	20.81	23.41	27.99	27.25	26.01	34.24	37.65	42.17	35.36	28.80	28.42	22.67	31.10	30.83	30.85	37.05

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.16
= 25.78

The days of inventory on hand (DOH) for Marathon Petroleum Corp have shown variability over the past eight quarters, ranging from a low of 21.24 days in Q4 2022 to a high of 28.59 days in Q3 2022. The DOH indicates how many days it takes the company to sell its inventory.

In the recent quarters, the DOH has been relatively stable, with figures around the mid-to-high 20s range. This suggests that Marathon Petroleum has been able to efficiently manage its inventory levels, neither having excessive amounts sitting idle nor running low on stock.

The downward trend from Q4 2022 to Q1 2023 indicates an improvement in inventory turnover efficiency, allowing the company to sell inventory quicker. This trend may be further evidence of effective inventory management strategies or changes in demand patterns.

The slight increase in DOH from Q1 2023 to Q3 2023 could suggest a potential buildup of inventory or slower sales relative to production. It could be worth monitoring in future quarters to see if this trend continues or if it is a temporary deviation.

Overall, based on the quarterly DOH values, Marathon Petroleum Corp appears to have maintained a reasonable balance in managing its inventory levels efficiently, but further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of its performance in this area.