Marathon Petroleum Corp (MPC)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	3,445,000	4,525,000	7,183,000	7,894,000	9,681,000	11,551,000	12,746,000	16,390,000	14,511,000	11,964,000	8,183,000	2,611,000	1,290,000	476,000	-1,475,000	-1,956,000	-11,032,000	-10,734,000	-8,636,000	-7,715,000
Total stockholders’ equity	US$ in thousands	25,712,000	18,933,000	21,324,000	22,922,000	24,404,000	25,862,000	25,714,000	26,858,000	27,715,000	26,304,000	26,306,000	23,972,000	26,206,000	28,280,000	28,921,000	21,592,000	22,199,000	29,414,000	23,741,000	24,088,000
ROE		13.40%	23.90%	33.69%	34.44%	39.67%	44.66%	49.57%	61.02%	52.36%	45.48%	31.11%	10.89%	4.92%	1.68%	-5.10%	-9.06%	-49.70%	-36.49%	-36.38%	-32.03%

December 31, 2024 calculation

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

Marathon Petroleum Corp's return on equity (ROE) showed a significant improvement over the analyzed period. The ROE was negative in the first half of 2020, indicating the company was not generating satisfactory returns from shareholders' equity. However, starting from the first quarter of 2022, the ROE turned positive and consistently increased, reaching its peak at 61.02% in the first quarter of 2023.

This upward trend in ROE signifies that Marathon Petroleum Corp became more efficient in utilizing shareholders' equity to generate profits during this period. The company's sound financial performance and effective management of assets and liabilities likely contributed to this improved ROE.

Following the peak in the first quarter of 2023, there was a slight decline in ROE by the end of 2024, but the ratio remained at a satisfactory level, indicating that Marathon Petroleum Corp continued to deliver strong returns relative to shareholders' equity.

Overall, the increasing trend in ROE reflects positively on Marathon Petroleum Corp's profitability and efficiency in utilizing shareholders' equity to generate earnings for investors.