Marathon Petroleum Corp (MPC)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	9,681,000	14,516,000	9,738,000	-9,826,000	2,637,000
Total assets	US$ in thousands	85,987,000	89,904,000	85,373,000	85,158,000	98,556,000
ROA		11.26%	16.15%	11.41%	-11.54%	2.68%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $9,681,000K ÷ $85,987,000K
= 11.26%

The return on assets (ROA) for Marathon Petroleum Corp has varied over the past five years. In 2023, the ROA stood at 11.25%, which represents a decrease from the previous year's figure of 16.14%. Despite the decline, the ROA remains positive, indicating that the company is generating a profit from its assets.

In 2022, the ROA was relatively high at 16.14%, showing strong profitability from its asset base. This was an improvement compared to 2021 when the ROA was 11.40%. The positive trend in ROA over these two years suggests that the company's efficiency in generating profits from its assets improved.

In 2020, Marathon Petroleum Corp reported a negative ROA of -11.54%, indicating that the company incurred losses and was not effectively utilizing its assets to generate profits. This negative ROA could be attributed to various factors such as economic downturn, asset impairment, or operational inefficiencies.

The ROA in 2019 was 2.67%, reflecting a moderate performance in terms of asset utilization and profitability. Overall, analyzing the ROA trend over the five-year period provides insights into Marathon Petroleum Corp's ability to generate profits relative to its asset base, highlighting fluctuations in profitability and potential areas for improvement in asset utilization efficiency.