Marathon Petroleum Corp (MPC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.07 | 3.52 | 3.24 | 3.26 | 3.84 |
Marathon Petroleum Corp's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 over the five-year period from 2020 to 2024. This suggests that the company has not relied heavily on debt to finance its operations and investments.
Additionally, the Financial leverage ratio has shown a decreasing trend from 3.84 in 2020 to 3.07 in 2024. This indicates that Marathon Petroleum Corp has been gradually reducing its financial leverage, which is a positive sign of financial stability and lower risk.
Overall, based on these solvency ratios, Marathon Petroleum Corp appears to have a strong financial standing with minimal debt levels relative to its assets, capital, and equity, and a decreasing trend in financial leverage ratio over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.38 | 12.01 | 16.24 | 3.17 | -8.95 |
Based on the provided data for Marathon Petroleum Corp's interest coverage ratio, the company's ability to cover its interest expenses has shown significant fluctuations over the years.
As of December 31, 2020, the interest coverage ratio was negative at -8.95, indicating that the company's operating income was insufficient to cover its interest expenses, which could be a concerning signal for creditors and investors.
However, the situation improved dramatically by December 31, 2022, with an interest coverage ratio of 16.24. This suggests that the company's operating income became more than sufficient to cover its interest expenses, indicating a healthier financial position.
The trend continued to be positive through December 31, 2023, and December 31, 2024, with interest coverage ratios of 12.01 and 4.38, respectively. Although the ratio decreased from the previous year in 2024, it still indicates that the company's operating income is significantly higher than its interest expenses.
Overall, the company has shown a mixed performance in terms of interest coverage, with a notable improvement in recent years. It will be crucial for Marathon Petroleum Corp to maintain or improve its interest coverage ratio to ensure its financial stability and attractiveness to investors and creditors.