Marathon Petroleum Corp (MPC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 140,412,000 | 149,348,000 | 178,236,000 | 120,451,000 | 69,896,000 |
| Total current assets | US$ in thousands | 24,447,000 | 32,131,000 | 35,242,000 | 30,496,000 | 28,287,000 |
| Total current liabilities | US$ in thousands | 20,827,000 | 20,150,000 | 20,020,000 | 17,898,000 | 15,663,000 |
| Working capital turnover | 38.79 | 12.47 | 11.71 | 9.56 | 5.54 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $140,412,000K ÷ ($24,447,000K – $20,827,000K)
= 38.79
The working capital turnover of Marathon Petroleum Corp has shown a significant upward trend over the years, indicating improved efficiency in utilizing its working capital. The ratio has increased from 5.54 in December 31, 2020, to 38.79 in December 31, 2024. This suggests that the company is generating a higher level of revenue relative to its working capital investment, which is a positive sign of operational performance. The notable increase in the ratio reflects a more effective management of its working capital components such as current assets and current liabilities. Marathon Petroleum Corp's ability to generate sales and maintain a lean working capital position is commendable and can be seen as a reflection of its efficiency in managing its liquidity and operational activities.
Peer comparison
Dec 31, 2024