Marathon Petroleum Corp (MPC)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	27,000,000	26,300,000	25,100,000	31,100,000	28,300,000
Total stockholders’ equity	US$ in thousands	24,404,000	27,715,000	26,206,000	22,199,000	33,694,000
Debt-to-capital ratio		0.53	0.49	0.49	0.58	0.46

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $27,000,000K ÷ ($27,000,000K + $24,404,000K)
= 0.53

The debt-to-capital ratio of Marathon Petroleum Corp has fluctuated over the past five years. In 2023, the ratio increased to 0.53 from 0.49 in 2022, which indicates that the company's debt level in relation to its total capital also increased. Comparing to previous years, this ratio was at a similar level in 2021 but was higher in 2020 at 0.59. However, it decreased in 2019 to 0.46.

This trend suggests that Marathon Petroleum Corp has been managing its debt-to-capital structure dynamically over the years. A higher debt-to-capital ratio may imply that the company relies more on debt financing, which can potentially lead to higher financial risk but may also indicate leveraging strategies for growth or investment opportunities. Conversely, a lower ratio might signify a more conservative financial approach.

Further analysis and comparison with industry benchmarks or peer companies would provide better insights into Marathon Petroleum Corp's debt management strategies and overall financial health.