Marathon Petroleum Corp (MPC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.92% | 12.28% | 5.39% | -13.05% | 6.92% |
| Operating profit margin | 9.80% | 12.16% | 3.60% | -17.83% | 3.60% |
| Pretax margin | 8.44% | 10.77% | 8.37% | -17.84% | 2.76% |
| Net profit margin | 6.54% | 8.22% | 8.15% | -14.30% | 2.13% |
Marathon Petroleum Corp's profitability ratios have shown variability over the past five years. The company's gross profit margin has fluctuated, with a slight decline from 2022 to 2023 but still remaining above the levels recorded in 2021 and 2020. The operating profit margin also saw a decrease in 2023 compared to 2022, but it has generally improved since 2020.
The pretax margin has shown a similar trend, with an increase in 2023 compared to 2022, reflecting improved profitability before accounting for taxes. However, it is worth noting that the pretax margin was negative in 2020 and 2019, indicating challenges faced by the company during those years.
The net profit margin has also displayed variability, with a notable increase in 2023 compared to 2022, but it remains below the levels seen in 2019. The negative net profit margin in 2020 highlights a period of significant financial strain for the company.
Overall, Marathon Petroleum Corp's profitability ratios suggest a mixed performance in recent years, with improvements in some margins but ongoing challenges in achieving consistent profitability. Further analysis and consideration of the company's operational and strategic factors are needed to gain a comprehensive understanding of its financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.88% | 23.88% | 5.04% | -14.38% | 4.53% |
| Return on assets (ROA) | 11.26% | 16.15% | 11.41% | -11.54% | 2.68% |
| Return on total capital | 28.24% | 39.75% | 8.38% | -22.98% | 7.20% |
| Return on equity (ROE) | 39.67% | 52.38% | 37.16% | -44.26% | 7.83% |
Marathon Petroleum Corp's profitability ratios show a fluctuating trend over the past five years.
The Operating return on assets (Operating ROA) has seen a significant decrease from 21.97% in 2022 to 15.76% in 2023. This ratio indicates that the company is generating operating income relative to its total assets, with a higher percentage reflecting better operational efficiency. The decrease in 2023 suggests a potential decrease in operating efficiency compared to the prior year.
The Return on assets (ROA) shows a similar trend, with a decrease from 16.14% in 2022 to 11.25% in 2023. This ratio evaluates the company's overall profitability relative to its total assets, with a higher percentage indicating better profitability. The decrease in 2023 indicates a potential decline in overall profitability compared to the prior year.
The Return on total capital reflects a more volatile trend, with a substantial increase to 37.50% in 2022, followed by a decline to 27.66% in 2023. This ratio measures the return earned on all capital invested in the company, including debt and equity. The fluctuation in this ratio suggests changes in the company's ability to generate returns on its total invested capital.
The Return on equity (ROE) shows a similar pattern, with a decline from 52.35% in 2022 to 39.63% in 2023. This ratio assesses the return that shareholders receive on their equity investment in the company. The decrease in 2023 indicates a potential decrease in shareholder profitability compared to the prior year.
Overall, Marathon Petroleum Corp's profitability ratios indicate a mix of operational efficiency, overall profitability, return on capital, and return on equity performance. It is important for stakeholders to closely monitor these ratios to understand the company's financial health and performance.