Marathon Petroleum Corp (MPC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.31 | 0.29 | 0.29 | 0.37 | 0.29 |
| Debt-to-capital ratio | 0.53 | 0.49 | 0.49 | 0.58 | 0.46 |
| Debt-to-equity ratio | 1.11 | 0.95 | 0.96 | 1.40 | 0.84 |
| Financial leverage ratio | 3.52 | 3.24 | 3.26 | 3.84 | 2.93 |
The solvency ratios of Marathon Petroleum Corp indicate a generally favorable trend over the past five years. The debt-to-assets ratio has been relatively stable, ranging from 0.29 to 0.37, with the current ratio at 0.32 as of December 31, 2023. This suggests that the company has been able to effectively manage its debt levels in relation to its total assets.
Similarly, the debt-to-capital and debt-to-equity ratios have shown improvements over the years, indicating Marathon Petroleum Corp has been reducing its reliance on debt financing and increasing its equity position in its capital structure. As of December 31, 2023, the debt-to-capital ratio stands at 0.53, while the debt-to-equity ratio is at 1.12. These figures demonstrate that the company is maintaining a healthy balance between debt and equity in its financing mix.
Furthermore, the financial leverage ratio, which reflects the proportion of debt in the company's capital structure, has also shown a positive trend. It has decreased from 3.84 in 2020 to 3.52 in 2023, suggesting that Marathon Petroleum Corp has been improving its financial leverage and reducing its overall financial risk.
Overall, based on the solvency ratios analysis, Marathon Petroleum Corp appears to have a strong financial position with prudent debt management practices and a balanced capital structure.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 11.15 | 17.24 | 3.23 | -8.70 | 3.36 |
Interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Examining Marathon Petroleum Corp's interest coverage over the past five years, we observe a consistent and strong performance. In 2023, the interest coverage ratio stood at 19.45, slightly lower than the previous year but still at a healthy level. This ratio suggests that the company's operating income is more than sufficient to cover its interest expenses.
Looking back to 2021, there was a significant improvement in the interest coverage ratio compared to 2020, with a sharp increase from 3.42 to 20.33. This surge indicates a substantial enhancement in the company's ability to meet its interest obligations, reflecting positively on its financial health.
While data for 2020 and 2019 is not available in the provided table, the trend from 2021 onwards demonstrates an overall positive trajectory in Marathon Petroleum Corp's interest coverage ratio. This consistent performance indicates a strong financial position, likely bolstered by effective cost management and operational efficiency.
Overall, Marathon Petroleum Corp's interest coverage ratio has shown stability and strength in recent years, suggesting that the company has the financial capacity to comfortably meet its interest payments.