Marathon Petroleum Corp (MPC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,731,000 | 15,339,000 | 19,750,000 | 4,117,000 | -12,279,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 25,712,000 | 24,404,000 | 27,715,000 | 26,206,000 | 22,199,000 |
| Return on total capital | 22.29% | 62.85% | 71.26% | 15.71% | -55.31% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,731,000K ÷ ($—K + $25,712,000K)
= 22.29%
The return on total capital for Marathon Petroleum Corp has exhibited significant fluctuations over the years, reflecting variations in the company's operational performance and capital structure. In 2020, the return on total capital was notably negative at -55.31%, indicating that the company experienced challenges in generating returns from its deployed capital during that period.
However, there was a notable improvement in 2021, with the return on total capital increasing to 15.71%, signaling a recovery and better utilization of the company's total capital. The subsequent years, 2022 and 2023, experienced substantial growth in the return on total capital to 71.26% and 62.85%, respectively, indicating enhanced efficiency in generating profits relative to the total capital employed.
In 2024, there was a slight decline in the return on total capital to 22.29%, which, although lower than the peak in 2022 and 2023, still reflects a positive return on the total capital invested. Overall, Marathon Petroleum Corp's return on total capital has shown a mix of performance levels over the years, with the company demonstrating the ability to effectively utilize its capital to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024