Marathon Petroleum Corp (MPC)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	6,796,000	14,514,000	19,750,000	3,757,000	-2,600,000
Revenue	US$ in thousands	140,412,000	149,348,000	178,236,000	120,451,000	69,896,000
Operating profit margin		4.84%	9.72%	11.08%	3.12%	-3.72%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $6,796,000K ÷ $140,412,000K
= 4.84%

Based on the provided data, Marathon Petroleum Corp's operating profit margin has demonstrated significant fluctuations over the five-year period.

In December 2020, the company reported a negative operating profit margin of -3.72%, indicating that its operating expenses exceeded its operating income, resulting in a loss from core operations.

However, by December 2021, the company managed to improve its operating performance, achieving an operating profit margin of 3.12%. This indicates that the company was able to control its operating expenses more effectively and generate a modest profit from its core operations.

Subsequently, in December 2022, Marathon Petroleum Corp's operating profit margin significantly increased to 11.08%, reflecting a substantial improvement in operating efficiency and profitability. This strong performance suggests that the company managed its costs well and increased its revenue streams effectively.

In the following year, December 2023, the operating profit margin slightly decreased to 9.72%, indicating a small dip in profitability compared to the previous year. Despite this decline, the company still maintained a healthy operating profit margin, suggesting continued operational effectiveness.

Finally, by December 2024, Marathon Petroleum Corp's operating profit margin was recorded at 4.84%, lower than the peak in 2022 but still showing a positive trend. This decrease might indicate some challenges faced by the company in controlling costs or generating revenue during that period.

Overall, the company has shown varying levels of operating efficiency and profitability over the five-year period, with notable improvements in certain years and some fluctuations in performance. It is essential for Marathon Petroleum Corp to continue monitoring and optimizing its operating profit margin to ensure sustainable financial health and long-term success.