Marathon Petroleum Corp (MPC)

Current ratio

		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
Total current assets	US$ in thousands	5,143,000	25,949,000	31,347,000	31,260,000	32,131,000	36,275,000	32,213,000	32,486,000	35,242,000	35,285,000	42,413,000	36,388,000	30,496,000	34,143,000	38,592,000	30,361,000	28,287,000	26,200,000	14,643,000	15,693,000
Total current liabilities	US$ in thousands	20,827,000	21,068,000	24,000,000	21,787,000	20,150,000	21,735,000	17,466,000	17,057,000	20,020,000	21,314,000	28,437,000	25,120,000	17,898,000	16,898,000	19,512,000	16,085,000	15,663,000	14,246,000	11,504,000	13,569,000
Current ratio		0.25	1.23	1.31	1.43	1.59	1.67	1.84	1.90	1.76	1.66	1.49	1.45	1.70	2.02	1.98	1.89	1.81	1.84	1.27	1.16

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,143,000K ÷ $20,827,000K
= 0.25

The current ratio of Marathon Petroleum Corp has fluctuated over the past five years, with values ranging from 0.25 to 2.02. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities, while a ratio above 1 signifies a strong ability to cover these obligations.

From March 2020 to September 2021, the current ratio steadily increased from 1.16 to 2.02, indicating improving liquidity and a better ability to cover short-term debts. However, there was a slight decrease in the ratio from December 2021 to March 2022, which might suggest some challenges in liquidity management during that period.

Subsequently, the current ratio fluctuated between 1.43 and 1.98 until December 2023, when it decreased to 1.59. The ratio saw a significant decline to 0.25 by the end of December 2024, which raises concerns about the company's ability to cover its short-term obligations with its current assets. This steep drop may indicate issues with managing current assets or an increase in short-term debt.

Overall, the trend in Marathon Petroleum Corp's current ratio warrants close monitoring to ensure the company maintains sufficient liquidity to meet its short-term obligations effectively. Management may need to focus on optimizing current asset management and working capital practices to improve the current ratio in the future.