Marathon Petroleum Corp (MPC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,087,000 | 7,341,000 | 10,310,000 | 11,267,000 | 13,644,000 | 16,079,000 | 17,093,000 | 22,085,000 | 19,750,000 | 16,795,000 | 12,554,000 | 5,303,000 | 3,813,000 | 2,583,000 | 290,000 | -49,000 | -11,881,000 | -11,407,000 | -8,767,000 | -7,786,000 |
| Interest expense (ttm) | US$ in thousands | 1,338,000 | 1,330,000 | 1,324,000 | 1,326,000 | 1,308,000 | 1,296,000 | 1,268,000 | 1,237,000 | 1,213,000 | 1,191,000 | 1,211,000 | 1,230,000 | 1,297,000 | 1,329,000 | 1,360,000 | 1,389,000 | 1,382,000 | 1,363,000 | 1,332,000 | 1,313,000 |
| Interest coverage | 4.55 | 5.52 | 7.79 | 8.50 | 10.43 | 12.41 | 13.48 | 17.85 | 16.28 | 14.10 | 10.37 | 4.31 | 2.94 | 1.94 | 0.21 | -0.04 | -8.60 | -8.37 | -6.58 | -5.93 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $6,087,000K ÷ $1,338,000K
= 4.55
The interest coverage ratio of Marathon Petroleum Corp has shown a significant improvement over the past few quarters. Beginning in March 2020 and continuing until June 2021, the company had negative interest coverage ratios, indicating that the company's operating income was insufficient to cover its interest expenses during that period.
However, starting from September 2021, Marathon Petroleum Corp began to show positive interest coverage ratios, indicating that the company's operating income was increasingly able to cover its interest expenses. The interest coverage ratio continued to improve steadily throughout 2022 and into 2023, reaching its peak in March 2024.
Overall, the trend in Marathon Petroleum Corp's interest coverage ratio reflects a positive financial performance, with the company gradually strengthening its ability to meet interest obligations with its operating income. This improvement suggests enhanced financial stability and reduced financial risk for the company.
Peer comparison
Dec 31, 2024