Marathon Petroleum Corp (MPC)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	14,514,000	16,858,000	18,791,000	23,814,000	21,469,000	18,508,000	13,162,000	5,799,000	4,300,000	2,912,000	515,000	125,000	-12,247,000	-12,079,000	-9,342,000	-8,219,000	4,462,000	5,921,000	5,644,000	5,657,000
Long-term debt	US$ in thousands	27,000,000	26,900,000	26,900,000	26,900,000	26,300,000	26,300,000	26,300,000	26,300,000	25,100,000	26,900,000	27,900,000	32,000,000	31,100,000	31,400,000	31,600,000	31,000,000	28,300,000	28,300,000	27,900,000	27,600,000
Total stockholders’ equity	US$ in thousands	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	22,453,000	23,741,000	24,088,000	33,694,000	33,738,000	34,207,000	33,951,000
Return on total capital		28.24%	31.95%	35.71%	44.30%	39.75%	35.18%	25.02%	11.54%	8.38%	5.28%	0.91%	0.23%	-22.98%	-22.43%	-16.88%	-14.92%	7.20%	9.54%	9.09%	9.19%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $14,514,000K ÷ ($27,000,000K + $24,404,000K)
= 28.24%

Marathon Petroleum Corp's return on total capital has shown a consistent positive trend over the past eight quarters. The return on total capital has ranged from a low of 11.44% in Q1 2022 to a high of 41.99% in Q1 2023. This indicates the company's ability to generate profit from the total capital employed in its operations.

The increasing trend in the return on total capital from Q2 2022 to Q1 2023 reflects improving efficiency in utilizing its capital resources to generate profits. The company experienced a notable increase in Q1 2023, reaching a peak of 41.99%, which suggests enhanced operational performance and effective management of capital investments during that period.

Overall, Marathon Petroleum Corp's return on total capital demonstrates a strong performance and efficient capital utilization, which can be indicative of solid financial health and effective strategic decision-making by the company's management. However, further analysis in conjunction with other financial metrics and industry benchmarks would provide a more comprehensive evaluation of the company's financial performance.