Marathon Petroleum Corp (MPC)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 85,987,000 | 89,969,000 | 86,442,000 | 87,037,000 | 89,904,000 | 89,694,000 | 96,737,000 | 90,952,000 | 85,373,000 | 89,300,000 | 94,300,000 | 86,651,000 | 85,158,000 | 84,020,000 | 84,593,000 | 86,317,000 | 98,556,000 | 98,139,000 | 96,896,000 | 96,436,000 |
| 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 |
| Financial leverage ratio | 3.52 | 3.48 | 3.36 | 3.24 | 3.24 | 3.41 | 3.68 | 3.79 | 3.26 | 3.16 | 3.26 | 4.01 | 3.84 | 3.74 | 3.56 | 3.58 | 2.93 | 2.91 | 2.83 | 2.84 |
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 fluctuations over the past eight quarters, ranging from 3.24 to 3.79. The trend indicates that the company's financial leverage has been relatively high, with the ratio consistently above 3.0.
A financial leverage ratio above 3.0 suggests that Marathon Petroleum Corp relies significantly on debt to finance its operations and investments, implying higher financial risk. The increasing trend in the ratio from Q2 2022 to Q1 2023 indicates a rise in the company's debt relative to its equity during that period.
It is essential for stakeholders to closely monitor the financial leverage ratio of Marathon Petroleum Corp to assess the company's ability to meet its debt obligations and manage financial risk effectively. Further analysis, including comparing the ratio to industry benchmarks and evaluating the company's overall financial health, would provide a more comprehensive understanding of its leverage position.
Peer comparison
Dec 31, 2023