Marathon Petroleum Corp (MPC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 85,987,000 | 89,904,000 | 85,373,000 | 85,158,000 | 98,556,000 |
| Total stockholders’ equity | US$ in thousands | 24,404,000 | 27,715,000 | 26,206,000 | 22,199,000 | 33,694,000 |
| Financial leverage ratio | 3.52 | 3.24 | 3.26 | 3.84 | 2.93 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $85,987,000K ÷ $24,404,000K
= 3.52
The financial leverage ratio of Marathon Petroleum Corp has shown some fluctuations over the past five years. The ratio has ranged from 2.93 in 2019 to 3.84 in 2020, indicating changes in the company's level of financial leverage over this period.
The ratio stood at 3.26 in 2021, slightly increasing from the previous year, but then decreased to 3.24 in 2022 before rising to 3.52 in 2023. These fluctuations suggest that Marathon Petroleum Corp has been managing its capital structure and debt levels with varying degrees of leverage over the years.
A financial leverage ratio of above 3 indicates that the company relies more on debt financing than equity, which may magnify returns but also increase financial risk. However, it is important to consider the industry benchmarks and overall economic conditions when assessing the appropriateness of Marathon Petroleum Corp's financial leverage ratio.
Peer comparison
Dec 31, 2023