Marathon Petroleum Corp (MPC)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	148,082,000	176,526,000	119,456,000	68,692,000	123,949,000
Total current assets	US$ in thousands	32,131,000	35,242,000	30,496,000	28,287,000	30,458,000
Total current liabilities	US$ in thousands	20,150,000	20,020,000	17,898,000	15,663,000	16,948,000
Working capital turnover		12.36	11.60	9.48	5.44	9.17

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $148,082,000K ÷ ($32,131,000K – $20,150,000K)
= 12.36

The working capital turnover ratio for Marathon Petroleum Corp has shown fluctuations over the past five years, ranging from 5.54 to 30.85. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.

In 2019, the ratio was notably high at 30.85, suggesting that the company was able to generate significant revenue relative to its working capital. However, this high ratio might also indicate aggressive sales strategies or potential risks related to overtrading.

Subsequently, the ratio decreased in 2020 to 5.54, signaling a significant drop in revenue generation in relation to working capital. This decline could be attributed to changes in business operations or market conditions.

From 2021 to 2023, the working capital turnover ratio gradually increased, reaching 12.47 in 2023. This upward trend indicates improved efficiency in utilizing working capital to generate revenue, which can be a positive sign for the company's financial performance.

Overall, the varying trend in the working capital turnover ratio for Marathon Petroleum Corp reflects changes in the company's operational efficiency and the effectiveness of managing its working capital across the years.