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.
Peer comparison
Dec 31, 2023