Marathon Petroleum Corp (MPC)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	78,858,000	85,987,000	89,904,000	85,373,000	85,158,000
Operating ROA		8.62%	16.88%	21.97%	4.40%	-3.05%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $6,796,000K ÷ $78,858,000K
= 8.62%

The operating return on assets (operating ROA) for Marathon Petroleum Corp has shown varying trends over the years based on the provided data.

In December 31, 2020, the company had a negative operating ROA of -3.05%, indicating that the company's operating income generated from its assets was insufficient to cover its asset base during that period.

However, by December 31, 2021, the operating ROA improved significantly to 4.40%, suggesting a better utilization of assets to generate operating income. This improvement continued into December 31, 2022, with an impressive operating ROA of 21.97%, indicating a substantial increase in the efficiency of using assets to generate operating profits.

In December 31, 2023, the operating ROA remained strong at 16.88%, reflecting continued favorable operational performance. However, there was a decrease in operating ROA by December 31, 2024, to 8.62%, indicating a slight dip in the company's ability to generate operating income from its assets compared to the previous year.

Overall, the trend indicates an initial negative operating ROA followed by a significant improvement in the subsequent years, peaking in 2022, and maintaining relatively strong levels in the following years, though showing a slight decline in 2024. This analysis suggests that Marathon Petroleum Corp has made progress in using its assets efficiently to generate operating income, although maintaining this performance will be crucial for sustainable profitability.