Marathon Oil Corporation (MRO)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	6,697,000	6,739,000	7,173,000	7,963,000	8,036,000	8,103,000	7,309,000	6,149,000	5,467,000	4,497,000	3,798,000	2,927,000	3,086,000	3,471,000	4,062,000	5,223,000	5,190,000	5,740,000	6,062,000	6,046,000
Property, plant and equipment	US$ in thousands	17,213,000	17,411,000	17,524,000	17,463,000	17,377,000	14,245,000	14,357,000	14,422,000	14,499,000	14,734,000	15,019,000	15,313,000	15,638,000	16,029,000	16,424,000	16,903,000	17,000,000	16,717,000	16,730,000	16,714,000
Fixed asset turnover		0.39	0.39	0.41	0.46	0.46	0.57	0.51	0.43	0.38	0.31	0.25	0.19	0.20	0.22	0.25	0.31	0.31	0.34	0.36	0.36

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,697,000K ÷ $17,213,000K
= 0.39

The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. A higher ratio indicates better efficiency in utilizing fixed assets.

In the case of Marathon Oil Corporation, we observe a declining trend in fixed asset turnover from Q1 2022 to Q4 2023. The ratio decreased from 0.43 in Q1 2022 to 0.37 in Q4 2023. This could signify a potential inefficiency in utilizing fixed assets to generate revenue.

The average fixed asset turnover ratio for the past eight quarters stands at approximately 0.43, with fluctuations around this average. This suggests that Marathon Oil Corporation's utilization of fixed assets to generate revenue has been relatively consistent over the period analyzed.

It is essential for Marathon Oil Corporation to closely monitor and evaluate their fixed asset efficiency to ensure optimal utilization of resources and to potentially improve the fixed asset turnover ratio going forward. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational efficiency.