Marathon Oil Corporation (MRO)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 325,000 | 328,000 | 337,000 | 334,000 | 310,000 | 443,000 | 450,000 | 500,000 | 528,000 | 884,000 | 861,000 | 827,000 | 1,019,000 | 564,000 | 584,000 | 606,000 | 657,000 | 1,613,000 | 1,650,000 | 1,891,000 |
| Payables | US$ in thousands | 1,364,000 | 1,582,000 | 1,537,000 | 1,480,000 | 1,279,000 | 1,480,000 | 1,523,000 | 1,299,000 | 1,110,000 | 1,028,000 | 937,000 | 918,000 | 837,000 | 730,000 | 696,000 | 1,104,000 | 1,307,000 | 1,374,000 | 1,401,000 | 1,310,000 |
| Payables turnover | 0.24 | 0.21 | 0.22 | 0.23 | 0.24 | 0.30 | 0.30 | 0.38 | 0.48 | 0.86 | 0.92 | 0.90 | 1.22 | 0.77 | 0.84 | 0.55 | 0.50 | 1.17 | 1.18 | 1.44 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $325,000K ÷ $1,364,000K
= 0.24
The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays off its suppliers within a given period. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly.
Looking at Marathon Oil Corporation's payables turnover over the past eight quarters, we can see some variability in the ratio. The payables turnover ratio has ranged from 0.40 to 0.61, with Q4 2023 showing the highest ratio and Q2 2022 showing the lowest.
Overall, the average payables turnover ratio for Marathon Oil Corporation seems to be around 0.50, indicating that the company pays its suppliers roughly every 0.50 times a year. This suggests that Marathon Oil Corporation is moderately efficient in managing its accounts payable and is keeping a balance between timely payments and maintaining good relationships with its suppliers.
It is important to note that the payables turnover ratio should be analyzed in conjunction with other financial metrics and industry benchmarks to get a complete picture of the company's financial health and efficiency in managing working capital.
Peer comparison
Dec 31, 2023