Marathon Petroleum Corp (MPC)

Payables 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
Payables	US$ in thousands	13,761,000	15,839,000	13,052,000	13,031,000	15,312,000	16,682,000	22,502,000	19,791,000	13,700,000	12,196,000	12,170,000	9,953,000	7,803,000	6,701,000	6,110,000	8,106,000	11,222,000	11,380,000	10,905,000	10,568,000
Payables turnover		9.59	8.39	10.47	11.45	10.11	9.19	6.40	6.42	8.25	8.05	7.07	7.31	10.58	14.00	16.99	14.79	10.25	10.09	9.86	9.17

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ 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 comparing the cost of goods sold to its average accounts payable. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Analyzing the payables turnover data of Marathon Petroleum Corp from Q1 2022 to Q4 2023 reveals fluctuations in the ratio over time. In Q1 2022, the payables turnover was 6.27, indicating that the company paid its suppliers approximately 6.27 times during the quarter. The ratio remained constant in Q2 2022 and then increased to 9.01 in Q3 2022, suggesting an improvement in the efficiency of managing accounts payable.

However, in Q4 2022, the payables turnover ratio further increased to 9.91, indicating that the company paid its suppliers more frequently compared to the previous quarter. Subsequently, in Q1 2023, there was a significant increase in the payables turnover ratio to 11.20, which suggests a significant improvement in managing accounts payable efficiency.

The trend reversed in Q2 2023, with the payables turnover ratio decreasing to 10.22 and then further dropping to 8.18 in Q3 2023. Finally, in Q4 2023, the ratio slightly increased to 9.34, indicating a slight improvement in managing accounts payable.

Overall, the fluctuations in Marathon Petroleum Corp's payables turnover ratio suggest variations in the company's management of accounts payable over the analyzed period, with notable improvements in Q1 2023 followed by some fluctuations in subsequent quarters. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial performance and efficiency in managing its payables.