Marathon Petroleum Corp (MPC)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	131,905,000	154,843,000	113,017,000	77,655,000	115,284,000
Inventory	US$ in thousands	9,317,000	8,827,000	8,055,000	7,999,000	9,804,000
Inventory turnover		14.16	17.54	14.03	9.71	11.76

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $131,905,000K ÷ $9,317,000K
= 14.16

Marathon Petroleum Corp's inventory turnover has shown fluctuating trends over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory levels.

In 2023, the inventory turnover ratio was 13.80, which suggests that the company converted its inventory into sales 13.80 times during the year. This was a decrease from the previous year's ratio of 17.18, indicating a potential slowdown in inventory management efficiency.

The 2022 ratio of 17.18 was notably higher than in 2021 and signaled an improvement in inventory turnover efficiency. However, the ratio dropped from 13.66 in 2021, suggesting a less efficient inventory management process that year.

The inventory turnover ratios for 2020 and 2019 were 8.22 and 10.76, respectively. These lower ratios indicate that in those years, Marathon Petroleum Corp took longer to sell its inventory compared to the more recent years.

Overall, fluctuations in inventory turnover ratios indicate varying levels of efficiency in managing inventory levels throughout the years analyzed. Further analysis of the company's inventory management practices and market conditions may provide insights into these fluctuations.