Marathon Petroleum Corp (MPC)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	3,445,000	9,681,000	14,516,000	1,288,000	-11,032,000
Total stockholders’ equity	US$ in thousands	25,712,000	24,404,000	27,715,000	26,206,000	22,199,000
ROE		13.40%	39.67%	52.38%	4.91%	-49.70%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $3,445,000K ÷ $25,712,000K
= 13.40%

Marathon Petroleum Corp's return on equity (ROE) has shown significant fluctuations over the years. In 2020, the ROE was negative, indicating that the company generated a net loss relative to its shareholders' equity. However, there was a notable improvement in 2021, with the ROE turning positive at 4.91%.

The following year, in 2022, Marathon Petroleum Corp's ROE surged to 52.38%, signifying a substantial increase in profitability and efficiency in utilizing shareholders' equity to generate earnings. This trend continued in 2023, with the ROE remaining strong at 39.67%.

In 2024, there was a slight decline in the ROE to 13.40%, but the figure still reflects a healthy return on equity, indicating that the company continues to effectively generate profits relative to shareholders' investment.

Overall, the trend in Marathon Petroleum Corp's ROE demonstrates variability but also showcases positive signs of improvement and efficiency in capital utilization over the years, reflecting the company's efforts to enhance profitability and shareholder value.