Marathon Petroleum Corp (MPC)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	131,905,000	132,869,000	136,663,000	149,155,000	154,843,000	153,355,000	144,083,000	127,008,000	113,017,000	98,199,000	86,078,000	72,768,000	82,570,000	93,820,000	103,837,000	119,890,000	115,066,000	114,781,000	107,533,000	96,873,000
Inventory	US$ in thousands	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	9,804,000	9,696,000	9,088,000	9,833,000
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

December 31, 2023 calculation

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

Marathon Petroleum Corp's inventory turnover has shown some fluctuations over the past eight quarters. The inventory turnover ratio indicates how many times the company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory levels.

In Q4 2023, the inventory turnover was 13.80, which was slightly higher compared to the previous quarter but still lower than the levels seen in Q4 2022. This suggests that the company may have been holding onto its inventory for a slightly longer period in Q4 2023.

Overall, the inventory turnover ratios over the past two years have been relatively healthy, ranging from 12.76 to 17.18. This indicates that Marathon Petroleum Corp has generally been able to efficiently manage its inventory levels and convert them into sales within a reasonable timeframe.

It is important for the company to closely monitor its inventory turnover ratio to ensure that it is neither overstocked nor understocked, as both situations can impact the company's profitability and cash flow. Additionally, comparing the company's inventory turnover ratio with industry benchmarks can provide further insights into its efficiency in managing inventory.