Marathon Petroleum Corp (MPC)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	9.64	11.98	15.13	17.05	13.08	12.93	9.21	8.62	10.83	10.73	8.90	9.70	13.03	17.95	23.41	21.64	15.75	16.78	15.41	15.36
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
Working capital turnover	9.35	10.28	10.54	11.21	11.58	12.46	11.40	11.98	9.48	5.92	4.56	5.07	5.94	7.38	32.52	56.87	9.17	32.94	33.41	35.25

Marathon Petroleum Corp's inventory turnover has shown a slight decrease over the past two quarters, indicating that the company is taking slightly longer to sell its inventory. However, the current inventory turnover ratio of 13.80 suggests that the company is efficient in managing its inventory and converting it into sales.

The receivables turnover ratio has fluctuated over the quarters but has generally been above 10, indicating that Marathon Petroleum Corp has been effective in collecting its receivables. The sharp increase in Q2 and Q1 2023 suggests that the company improved its collection process during that period.

The payables turnover ratio has also varied, but remains relatively stable around 9-10, indicating that Marathon Petroleum Corp is managing its payments to suppliers consistently. This stability suggests a good relationship with suppliers and a balanced approach to managing payables.

The working capital turnover ratio has shown some fluctuations but has remained above 10 in all quarters. This indicates that Marathon Petroleum Corp is efficiently using its working capital to generate revenue. The company's ability to generate sales with the available working capital is a positive sign of operational efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	25.78	27.86	25.47	25.13	20.81	23.41	27.99	27.25	26.01	34.24	37.65	42.17	35.36	28.80	28.42	22.67	31.10	30.83	30.85	37.05
Days of sales outstanding (DSO)	days	37.86	30.46	24.12	21.41	27.90	28.23	39.65	42.36	33.72	34.01	41.00	37.64	28.02	20.33	15.59	16.87	23.18	21.75	23.69	23.76
Number of days of payables	days	38.08	43.51	34.86	31.89	36.09	39.70	57.00	56.88	44.25	45.33	51.60	49.92	34.49	26.07	21.48	24.68	35.60	36.19	37.01	39.82

To analyze Marathon Petroleum Corp's activity ratios based on the available data, we can look at the following metrics:

1. Days of Inventory on Hand (DOH):
- The company's average DOH in Q4 2023 was 26.45 days, which decreased from Q3 and Q2 2023 levels.
- The downward trend in DOH indicates that the company has been managing its inventory more efficiently by reducing the days it takes to sell its inventory.
- However, the DOH in Q4 2023 was still higher than the Q4 2022 level, suggesting that there might be room for further improvement in inventory management.

2. Days of Sales Outstanding (DSO):
- The DSO for Q4 2023 was 28.40 days, showing a slight decrease compared to the previous quarter.
- The decreasing trend in DSO indicates that the company has been collecting its accounts receivable more efficiently.
- The Q4 2023 DSO was also lower than the Q4 2022 level, indicating improved management of receivables.

3. Number of Days of Payables:
- The company's average number of days of payables in Q4 2023 was 39.07 days, which decreased compared to the previous quarter.
- A decreasing trend in the number of days of payables suggests that the company is taking longer to pay its suppliers, potentially indicating strained supplier relationships or a push for better cash flow management.
- The Q4 2023 number of days of payables was lower than the Q4 2022 level, implying a more efficient management of payables.

In summary, Marathon Petroleum Corp has shown improvements in its inventory management, accounts receivable collection, and payables management in Q4 2023 compared to previous quarters. However, the company may still have opportunities to further enhance efficiency in these areas, particularly in reducing inventory days and managing supplier relationships effectively.

Long-term

	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
Fixed asset turnover	3.30	4.31	4.43	4.89	5.13	4.92	4.30	3.63	3.37	2.71	2.29	1.88	1.92	2.22	2.27	2.66	3.03	2.78	2.58	2.35
Total asset turnover	1.30	1.66	1.80	1.99	1.96	1.94	1.65	1.48	1.40	1.14	0.92	0.84	0.88	1.05	1.21	1.40	1.26	1.28	1.21	1.10

The fixed asset turnover ratio for Marathon Petroleum Corp has been relatively stable over the past eight quarters, ranging from 3.66 to 5.00. This indicates that the company is generating between $3.66 and $5.00 in revenue for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has also shown some consistency, fluctuating between 1.49 and 2.01 during the same period. This suggests that Marathon Petroleum Corp is generating between $1.49 and $2.01 in revenue for every dollar of total assets it holds.

Overall, both the fixed asset turnover and total asset turnover ratios indicate that Marathon Petroleum Corp is efficiently utilizing its assets to generate revenue, with the firm achieving a higher turnover of fixed assets compared to total assets.