Marathon Petroleum Corp (MPC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.07 | 4.22 | 4.00 | 3.73 | 3.58 | 3.48 | 3.36 | 3.24 | 3.24 | 3.41 | 3.68 | 3.79 | 3.26 | 3.16 | 3.26 | 4.01 | 3.84 | 2.86 | 3.56 | 3.58 |
Marathon Petroleum Corp's solvency ratios, such as the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, have consistently been at 0.00 over the past several quarters. This indicates that the company has very low levels of debt relative to its assets, capital, and equity.
On the other hand, the financial leverage ratio has shown some variability, ranging from 2.86 to 4.22 over the quarters analyzed. A financial leverage ratio above 1 generally indicates that a company relies more on debt financing than equity, and Marathon's ratios suggest a moderate level of financial leverage, with fluctuations observed over time.
Overall, the consistently low debt ratios indicate that Marathon Petroleum Corp maintains a strong financial position with little reliance on debt for its operations. However, the fluctuating financial leverage ratio suggests that the company's capital structure may have undergone some changes, impacting its overall solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Marathon Petroleum Corp shows a significant improvement over the quarters in question. In the first quarters of 2020 and 2021, the company had negative interest coverage, indicating that its operating income was insufficient to cover interest expenses. However, starting from the second quarter of 2021, the company's interest coverage turned positive, demonstrating gradual improvement.
The interest coverage ratio continued to increase steadily from June 2021 to December 2022, indicating that Marathon Petroleum Corp's ability to meet its interest obligations improved significantly during this period. The ratio peaked at 16.28 by the end of December 2022, reflecting a strong ability to cover interest payments with operating income.
In the following quarters, though there was a slight decrease in the interest coverage ratio, it remained above 5, indicating that the company's earnings were comfortably covering its interest expenses. Despite some fluctuations, Marathon Petroleum Corp showed a relatively stable interest coverage position throughout the observed period, which suggests a more solid financial position in terms of meeting its interest obligations.