Marathon Petroleum Corp (MPC)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	112,014,000	149,401,000	155,477,000	172,956,000	176,332,000	174,030,000	159,303,000	134,956,000	119,445,000	102,060,000	86,991,000	72,416,000	75,044,000	88,164,000	102,095,000	120,790,000	123,949,000	125,190,000	117,135,000	105,905,000
Property, plant and equipment	US$ in thousands	33,919,000	34,690,000	35,059,000	35,391,000	34,376,000	35,384,000	37,062,000	37,145,000	35,483,000	37,630,000	37,996,000	38,491,000	39,035,000	39,757,000	45,025,000	45,333,000	40,870,000	45,034,000	45,335,000	45,091,000
Fixed asset turnover		3.30	4.31	4.43	4.89	5.13	4.92	4.30	3.63	3.37	2.71	2.29	1.88	1.92	2.22	2.27	2.66	3.03	2.78	2.58	2.35

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $112,014,000K ÷ $33,919,000K
= 3.30

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investments in fixed assets. The higher the fixed asset turnover, the more efficiently the company is utilizing its fixed assets to generate sales.

In the case of Marathon Petroleum Corp, the fixed asset turnover has exhibited some fluctuations over the past eight quarters. The ratio has ranged from a low of 3.66 in Q1 2022 to a high of 5.00 in Q4 2022. Overall, the company has maintained a relatively healthy level of fixed asset turnover, with an average of around 4.50 during this period.

The decreasing trend in fixed asset turnover from Q1 2023 to Q4 2023 could indicate a decrease in the company's efficiency in generating sales from its fixed assets during this period. However, it is important to consider additional factors such as changes in the company's asset base, industry dynamics, and management decisions when interpreting this ratio.

Overall, Marathon Petroleum Corp's fixed asset turnover suggests that the company is efficiently utilizing its fixed assets to generate sales, although there may be some room for improvement in maximizing the revenue generated from its investment in fixed assets. Monitoring this ratio over time and comparing it to industry benchmarks can provide valuable insights into the company's operational efficiency and asset management.