Marathon Petroleum Corp (MPC)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	3,210,000	5,443,000	8,625,000	5,291,000	555,000
Short-term investments	US$ in thousands	1,933,000	4,781,000	3,145,000	5,548,000	5,422,000
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	20,827,000	20,150,000	20,020,000	17,898,000	15,663,000
Quick ratio		0.25	0.51	0.59	0.61	0.38

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,210,000K + $1,933,000K + $—K) ÷ $20,827,000K
= 0.25

The quick ratio of Marathon Petroleum Corp has shown fluctuations over the past five years. In December 31, 2020, the quick ratio was at 0.38, indicating a lower ability to cover immediate obligations with liquid assets. However, there has been an improvement in the quick ratio in the subsequent years. By December 31, 2021, the quick ratio had increased to 0.61, reflecting a better liquidity position compared to the previous year. Despite a slight decline to 0.59 by December 31, 2022, the company maintained a relatively stable quick ratio above 0.5, suggesting a reasonable ability to meet short-term liabilities with its quick assets.

However, a notable decrease was observed by December 31, 2023, with the quick ratio dropping to 0.51, indicating a potential liquidity challenge in covering immediate obligations. This decline in liquidity continued as the quick ratio fell significantly to 0.25 by December 31, 2024, demonstrating a considerable drop in the company's ability to meet short-term obligations with its liquid assets. Overall, Marathon Petroleum Corp's quick ratio trend highlights variability in liquidity performance over the years, with a notable decrease in recent periods, signaling a potential need for closer monitoring of short-term liquidity management.