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.
Peer comparison
Dec 31, 2023