Marathon Petroleum Corp (MPC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.09% | 13.92% | 14.90% | 8.67% | 5.96% |
| Operating profit margin | 4.84% | 9.72% | 11.08% | 3.12% | -3.72% |
| Pretax margin | 4.24% | 9.37% | 11.48% | 2.34% | -19.47% |
| Net profit margin | 2.45% | 6.48% | 8.14% | 1.07% | -15.78% |
Marathon Petroleum Corp's profitability ratios have shown varying trends over the past five years.
The Gross Profit Margin has improved from 5.96% in December 2020 to 10.09% in December 2024, indicating that the company is becoming more efficient in managing its cost of goods sold.
The Operating Profit Margin, after starting at a negative figure of -3.72% in December 2020, saw fluctuations and settled at 4.84% in December 2024, suggesting some challenges in controlling operating expenses throughout the period.
The Pretax Margin improved steadily from -19.47% in December 2020 to 4.24% in December 2024, signifying progress in the company's ability to generate profits before accounting for taxes.
Similarly, the Net Profit Margin also showed an upward trend, increasing from -15.78% in December 2020 to 2.45% in December 2024, indicating that Marathon Petroleum Corp was able to enhance its bottom line profitability over the period.
Overall, while the company has made progress in improving its profitability margins, there are still areas that need attention, particularly in controlling operating expenses to maximize net profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.62% | 16.88% | 21.97% | 4.40% | -3.05% |
| Return on assets (ROA) | 4.37% | 11.26% | 16.15% | 1.51% | -12.95% |
| Return on total capital | 22.29% | 62.85% | 71.26% | 15.71% | -55.31% |
| Return on equity (ROE) | 13.40% | 39.67% | 52.38% | 4.91% | -49.70% |
Marathon Petroleum Corp's profitability ratios indicate a fluctuating performance over the years.
- Operating return on assets (Operating ROA) has shown improvement from -3.05% in 2020 to 21.97% in 2022, but then decreased to 8.62% by the end of 2024.
- Return on assets (ROA) has followed a similar trend, starting at -12.95% in 2020, increasing to 16.15% in 2022, and then dropping to 4.37% in 2024.
- Return on total capital demonstrated significant volatility, ranging from -55.31% in 2020 to 71.26% in 2022, and then settling at 22.29% in 2024.
- Return on equity (ROE) also displayed variability, with values ranging from -49.70% in 2020 to 52.38% in 2022, and finally standing at 13.40% by the end of 2024.
Overall, while the company's profitability ratios have shown improvements in certain periods, there appears to be inconsistency in sustaining and growing profitability over the years. This could indicate fluctuations in operational efficiency, asset utilization, and capital structure management within Marathon Petroleum Corp.