Marathon Oil Corporation (MRO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,697,000 | 8,036,000 | 5,467,000 | 3,086,000 | 5,190,000 |
| Property, plant and equipment | US$ in thousands | 17,213,000 | 17,377,000 | 14,499,000 | 15,638,000 | 17,000,000 |
| Fixed asset turnover | 0.39 | 0.46 | 0.38 | 0.20 | 0.31 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,697,000K ÷ $17,213,000K
= 0.39
Marathon Oil Corporation's fixed asset turnover ratio has varied over the past five years. The ratio was 0.37 in 2023, indicating that the company generated $0.37 in sales for every $1 invested in fixed assets during the year. This value is lower compared to the previous year, where the ratio was 0.43 in 2022. The decline in fixed asset turnover from 2022 to 2023 suggests that Marathon Oil Corporation may have been less efficient in utilizing its fixed assets to generate sales during the most recent year.
Looking further back, the fixed asset turnover ratio was 0.39 in 2021, 0.20 in 2020, and 0.30 in 2019. The ratio has shown some fluctuations over these years, with a significant drop in 2020, indicating a decline in the company's ability to efficiently utilize its fixed assets to generate sales. However, there was a recovery in 2021 followed by fluctuations in subsequent years.
Overall, Marathon Oil Corporation's fixed asset turnover ratio has been mixed over the past five years, with fluctuations indicating changes in the company's efficiency in generating sales from its fixed assets. Further analysis of the company's operations and investment in fixed assets may be necessary to understand the factors driving these variations in the fixed asset turnover ratio.
Peer comparison
Dec 31, 2023