Marathon Petroleum Corp (MPC)
Payables 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 |
| Payables | US$ in thousands | 13,761,000 | 15,312,000 | 13,700,000 | 7,803,000 | 11,222,000 |
| Payables turnover | 9.59 | 10.11 | 8.25 | 9.95 | 10.27 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $131,905,000K ÷ $13,761,000K
= 9.59
Payables turnover is a financial ratio that measures how efficiently a company manages its accounts payable by evaluating how many times a company pays off its suppliers over a specific period. A higher payables turnover ratio indicates that a company is paying its suppliers more frequently.
Marathon Petroleum Corp's payables turnover has fluctuated over the past five years, ranging from 8.03 to 9.91. The decreasing trend from 2019 to 2021 (9.48 to 8.03) suggests that the company took longer to pay its suppliers during this period. However, there was an improvement in 2022 with a slight increase to 9.91.
In 2023, the payables turnover ratio further increased to 9.34, indicating that Marathon Petroleum Corp was more efficient in managing its accounts payable compared to the previous year. This could potentially imply better cash flow management, stronger supplier relationships, or improved inventory management practices.
Overall, the increasing trend in payables turnover ratio for Marathon Petroleum Corp from 2021 to 2023 signals a positive development in the company's payables management efficiency, which could have favorable implications for its working capital and liquidity position. However, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's performance in this aspect.
Peer comparison
Dec 31, 2023