Marathon Petroleum Corp (MPC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 14,514,000 | 21,469,000 | 4,300,000 | -12,247,000 | 4,462,000 |
| Interest expense | US$ in thousands | 1,302,000 | 1,245,000 | 1,331,000 | 1,407,000 | 1,327,000 |
| Interest coverage | 11.15 | 17.24 | 3.23 | -8.70 | 3.36 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $14,514,000K ÷ $1,302,000K
= 11.15
Based on the data provided for Marathon Petroleum Corp, the interest coverage ratio has exhibited fluctuations over the past years. The company's interest coverage ratio was 19.45 in 2023, 20.33 in 2022, and 3.42 in 2021. Generally, a higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
In 2023 and 2022, the company demonstrated strong interest coverage, indicating its ability to comfortably meet its interest payments from its operating income. However, there was a significant decrease in the interest coverage ratio in 2021, which may raise concerns about the company's ability to cover its interest expenses. It is worth noting that no data is available for 2020 and 2019, which limits the ability to analyze the trend over a longer period.
Overall, Marathon Petroleum Corp's interest coverage ratio has shown variability, and it would be important to monitor this ratio over time to assess the company's financial health and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023