Marathon Petroleum Corp (MPC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.31 | 0.30 | 0.31 | 0.31 | 0.29 | 0.29 | 0.27 | 0.29 | 0.29 | 0.30 | 0.30 | 0.37 | 0.37 | 0.37 | 0.37 | 0.36 | 0.29 | 0.29 | 0.29 | 0.29 |
| Debt-to-capital ratio | 0.53 | 0.51 | 0.51 | 0.50 | 0.49 | 0.50 | 0.50 | 0.52 | 0.49 | 0.49 | 0.49 | 0.60 | 0.58 | 0.58 | 0.57 | 0.56 | 0.46 | 0.46 | 0.45 | 0.45 |
| Debt-to-equity ratio | 1.11 | 1.04 | 1.05 | 1.00 | 0.95 | 1.00 | 1.00 | 1.10 | 0.96 | 0.95 | 0.96 | 1.48 | 1.40 | 1.40 | 1.33 | 1.29 | 0.84 | 0.84 | 0.82 | 0.81 |
| 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 |
The solvency ratios for Marathon Petroleum Corp indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
- Debt-to-assets ratio has remained relatively stable around 0.30-0.32, indicating that approximately 30-32% of the company's assets are financed by debt.
- Debt-to-capital ratio has also been consistent in the range of 0.49-0.53, showing that debt constitutes around 49-53% of the company's total capital structure.
- Debt-to-equity ratio has shown some fluctuation but generally ranges between 0.96-1.12, indicating that the company has been relying more on debt compared to equity in recent quarters.
- The financial leverage ratio has varied significantly, ranging from 3.24 to 3.79. This ratio measures the company's total assets relative to its equity and highlights some variability in the company's financial structure.
Overall, Marathon Petroleum Corp's solvency ratios suggest a moderate level of leverage, with a slightly increasing trend in debt reliance as seen in the debt-to-equity ratio. The company appears to have a stable financial position with a reasonable balance between debt and equity financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.15 | 12.87 | 14.53 | 18.68 | 17.23 | 15.10 | 10.56 | 4.58 | 3.23 | 2.14 | 0.37 | 0.09 | -8.65 | -8.79 | -6.89 | -6.11 | 3.39 | 4.47 | 4.66 | 5.17 |
Marathon Petroleum Corp's interest coverage ratio has shown a positive trend over the past eight quarters, indicating the company's strong ability to meet its interest payments using its operating income. The interest coverage ratio has consistently remained well above 1, which suggests that Marathon Petroleum Corp generates enough earnings to comfortably cover its interest expenses.
In Q1 2022, the interest coverage ratio was relatively low at 4.82, signaling slightly higher financial risk. However, from Q2 2022 onwards, the ratio demonstrated a significant improvement, reaching its peak in Q1 2023 at 24.93. This improvement indicates that the company's profitability and cash flow generation strengthened during this period.
Overall, Marathon Petroleum Corp's interest coverage has been robust and has shown a positive upward trend, reflecting a healthy financial position and the ability to meet its debt obligations through operational earnings.