Marathon Petroleum Corp (MPC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 24,404,000 | 27,715,000 | 26,206,000 | 22,199,000 | 33,694,000 |
| ROE | 39.67% | 52.38% | 37.16% | -44.26% | 7.83% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $9,681,000K ÷ $24,404,000K
= 39.67%
Marathon Petroleum Corp's return on equity (ROE) has exhibited significant fluctuations over the past five years. The ROE was at 39.63% in 2023, showing a decrease from the previous year's ROE of 52.35% in 2022. Despite the decrease, the ROE remains relatively high compared to historical levels.
In 2021, the ROE was 37.15%, indicating a slight increase from the negative ROE of -44.27% in 2020. The negative ROE in 2020 is a concerning sign as it suggests the company experienced a net loss compared to its equity.
The ROE of 7.82% in 2019 marks a lower level compared to recent years. It shows a significant improvement in profitability from the negative ROE in 2020.
Overall, the fluctuation in ROE indicates varying levels of profitability and efficiency in generating returns for shareholders. The negative ROE in 2020 raises a red flag, suggesting potential financial challenges during that period. Investors and stakeholders should monitor the company's ROE trend to assess its financial performance and sustainability.
Peer comparison
Dec 31, 2023