Marathon Petroleum Corp (MPC)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	127,951,000	130,727,000	134,519,000	132,239,000	131,913,000	132,154,000	135,833,000	147,491,000	152,465,000	151,074,000	141,022,000	123,992,000	110,008,000	93,855,000	80,435,000	63,290,000	65,733,000	74,304,000	82,506,000	96,795,000
Inventory	US$ in thousands	9,568,000	9,886,000	9,800,000	9,781,000	9,317,000	10,143,000	9,536,000	10,268,000	8,827,000	9,834,000	11,048,000	9,482,000	8,055,000	9,211,000	8,879,000	8,407,000	7,999,000	7,403,000	8,086,000	7,445,000
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $127,951,000K ÷ $9,568,000K
= 13.37

The inventory turnover ratio for Marathon Petroleum Corp provides insights into the efficiency of managing its inventory. The trend analysis of the inventory turnover from March 31, 2020, to December 31, 2024, shows fluctuations in the ratio over time.

The inventory turnover ratio decreases from 13.00 on March 31, 2020, to a low of 7.53 on March 31, 2021, indicating a decrease in the efficiency of selling and replenishing inventory during this period. However, the ratio starts to recover and increases steadily, reaching 17.27 on December 31, 2022, suggesting an improvement in inventory management efficiency.

After the peak in December 2022, the inventory turnover ratio fluctuates but generally remains within the range of 13-15, indicating consistent inventory management performance. Overall, the company's ability to turn over its inventory has shown improvement and stability over the analyzed period, with some fluctuations likely attributable to various factors affecting the business.