Marathon Petroleum Corp (MPC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,087,000 | 7,341,000 | 10,310,000 | 11,267,000 | 13,644,000 | 16,079,000 | 17,093,000 | 22,085,000 | 19,750,000 | 16,795,000 | 12,554,000 | 5,303,000 | 3,813,000 | 2,583,000 | 290,000 | -49,000 | -11,881,000 | -11,407,000 | -8,767,000 | -7,786,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 23.67% | 38.77% | 48.35% | 49.15% | 55.91% | 62.17% | 66.47% | 82.23% | 71.26% | 63.85% | 47.72% | 22.12% | 14.55% | 9.13% | 1.00% | -0.23% | -53.52% | -38.78% | -36.93% | -32.32% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,087,000K ÷ ($—K + $25,712,000K)
= 23.67%
Marathon Petroleum Corp's return on total capital has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The company started with negative returns in 2020, indicating inefficiency in utilizing its total capital. However, by March 31, 2021, the return improved slightly to -0.23%, signaling potential recovery.
Subsequently, Marathon Petroleum Corp's return on total capital showed a positive trajectory, reaching 71.26% by December 31, 2022. This significant improvement suggests the company enhanced its capital utilization efficiency and profitability during this period.
In 2023, the return on total capital slightly decreased to 55.91% by December 31, showcasing a minor dip in performance. The trend continued in 2024, with a further decline to 23.67% by December 31, indicating a potential slowdown in capital efficiency and profitability compared to the previous year.
Overall, Marathon Petroleum Corp has demonstrated notable improvements in its return on total capital from negative figures in 2020 to positive percentages in the following years, highlighting the company's efforts to enhance its financial performance and optimize capital utilization.
Peer comparison
Dec 31, 2024