Marathon Petroleum Corp (MPC)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	—	29.13	20.12	15.46	12.40	10.47	10.64	11.33	11.72	12.44	11.49	12.07	9.56	5.97	4.61	4.94	5.54	6.69	28.69	49.54

Based on the provided data for Marathon Petroleum Corp, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory. A higher ratio indicates that the company is selling its inventory quickly. Over the period from March 31, 2020, to December 31, 2024, Marathon Petroleum Corp's inventory turnover fluctuated. It decreased from 13.00 on March 31, 2020, to 8.22 on December 31, 2020, but then increased to 17.27 by December 31, 2022, before stabilizing around 13.00 in the subsequent periods.

2. Receivables Turnover:
- The absence of data for receivables turnover implies that there is no available information to calculate how many times a company collects its accounts receivable during a specific period. Without this information, it is challenging to assess the efficiency of Marathon Petroleum Corp in collecting outstanding receivables.

3. Payables Turnover:
- Similarly, the lack of data for payables turnover indicates that there is no information available to calculate how efficiently Marathon Petroleum Corp pays its suppliers within a given period. Without this data, it is hard to evaluate the company's management of its accounts payable.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how effectively the company utilizes its working capital to generate revenue. A higher ratio suggests that the company is efficiently managing its working capital. Marathon Petroleum Corp's working capital turnover varied over the period with fluctuations from as low as 4.54 on December 31, 2020, to a peak of 29.13 on September 30, 2024.

In conclusion, while the inventory turnover and working capital turnover ratios provide insights into Marathon Petroleum Corp's inventory management and working capital efficiency, the absence of data for receivables and payables turnover limits a comprehensive analysis of the company's overall activity performance during the specified periods.

Average number of days

		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
Days of inventory on hand (DOH)	days	27.29	27.60	26.59	27.00	25.78	28.01	25.62	25.41	21.13	23.76	28.59	27.91	26.73	35.82	40.29	48.48	44.42	36.37	35.77	28.07
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the provided data for Marathon Petroleum Corp, we analyzed the activity ratios, specifically focusing on the Days of Inventory on Hand (DOH) metric.

The DOH ratio is used to assess how efficiently a company manages its inventory. A lower DOH indicates better inventory management and faster turnover of inventory, which can lead to lower holding costs and higher liquidity.

From the data, we observed fluctuations in Marathon Petroleum Corp's DOH over the quarters. The trend indicates that the company has shown mixed performance in managing its inventory efficiently.

For instance, the DOH increased from 28.07 days as of March 31, 2020, to a peak of 48.48 days by March 31, 2021, signaling a potential inefficiency in managing inventory during that period. However, the DOH decreased to 21.13 days by December 31, 2022, and remained relatively stable around the mid to high 20s range in the subsequent quarters.

Overall, the decreasing trend in DOH from 2022 to 2024 suggests an improvement in inventory management efficiency for Marathon Petroleum Corp. This could potentially result in cost savings, improved cash flow, and enhanced operational performance over the analyzed periods.

It is essential for investors and stakeholders to continue monitoring the DOH ratio in subsequent quarters to gauge the company's ongoing efforts in optimizing its inventory management practices.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	4.23	4.32	4.77	4.84	4.75	4.19	3.54	3.10	2.74	2.23	1.83	1.79	2.01	2.00	2.32
Total asset turnover	1.77	1.78	1.73	1.71	1.70	1.69	1.82	2.01	1.98	1.94	1.66	1.50	1.41	1.15	0.93	0.81	0.82	0.95	1.06	1.22

The fixed asset turnover ratio for Marathon Petroleum Corp has shown a consistent upward trend over the past few years, indicating an improvement in the company's efficiency in generating revenue from its fixed assets. The ratio increased from 2.32 in March 2020 to 4.84 in December 2022, peaking at 4.84. However, there has been a slight decline in the ratio since then, standing at 4.23 in September 2023. It is important to monitor this ratio going forward to ensure that the company continues to effectively utilize its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio for Marathon Petroleum Corp has fluctuated over the same period, starting at 1.22 in March 2020, dropping to 0.82 in December 2020, and then gradually increasing to 1.77 by December 2024. The ratio indicates the company's ability to generate sales from its total assets. While there have been fluctuations in this ratio, the overall increasing trend suggests an improvement in the company's asset utilization efficiency over time. The company should continue to focus on optimizing its total asset utilization to drive revenue growth and profitability in the long term.