Marathon Petroleum Corp (MPC)

Cash conversion cycle

		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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	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

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 27.29 + — – —
= 27.29

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales. Marathon Petroleum Corp's cash conversion cycle has fluctuated over the past few years, indicating changes in its efficiency in managing working capital.

In the most recent period, the cash conversion cycle decreased from 35.82 days as of September 30, 2021, to 27.29 days as of December 31, 2024. This suggests that the company has become more efficient in managing its inventory, accounts receivable, and accounts payable during this period.

A lower cash conversion cycle is generally favorable as it indicates that the company is able to collect receivables quickly, manage inventory effectively, and negotiate favorable payment terms with suppliers. This can lead to improved cash flow and liquidity for the company.

Overall, Marathon Petroleum Corp's decreasing cash conversion cycle over the analyzed period suggests improved working capital management, which can positively impact the company's financial performance and liquidity position.