Marathon Oil Corporation (MRO)

Activity ratios

Short-term

Turnover 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
Inventory turnover	1.75	1.89	2.48	2.46	2.48	4.30	4.84	6.41	6.86	11.48	11.04	10.60	13.41	7.32	7.58	7.77	9.12	22.72	22.92	22.78
Receivables turnover	5.81	4.70	5.54	6.55	7.01	5.97	4.83	4.26	4.79	4.21	3.77	3.18	4.13	5.40	6.55	6.62	4.63	4.82	5.11	5.36
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
Working capital turnover	—	—	—	—	—	39.53	16.96	29.42	29.71	—	7.60	11.66	7.73	9.75	11.95	11.18	13.31	40.71	27.94	6.59

1. Inventory turnover:
Marathon Oil Corporation's inventory turnover ratio has been relatively consistent over the past eight quarters, ranging from 4.45 in Q4 2023 to 7.24 in Q1 2022. This indicates that on average, the company is able to sell and replace its inventory multiple times within a year. A higher inventory turnover ratio may signify efficient inventory management and control over stock levels.

2. Receivables turnover:
The receivables turnover ratio fluctuated over the quarters, with a range of 4.29 in Q1 2022 to 6.58 in Q4 2022. A higher receivables turnover ratio suggests that Marathon Oil Corporation is collecting its accounts receivable efficiently and promptly. The company's improving receivables turnover ratio in recent quarters may indicate effective credit and collection policies.

3. Payables turnover:
Marathon Oil Corporation's payables turnover ratio has been relatively stable over the quarters, with values ranging from 0.40 in Q2 2022 to 0.61 in Q4 2023. A lower payables turnover ratio may suggest that the company takes longer to pay its suppliers. However, it is important to note that industry norms and payment terms with suppliers should be considered when evaluating this ratio.

4. Working capital turnover:
The working capital turnover ratio is not provided for the first four quarters of 2023. However, in the previous quarters, the company showed significantly high working capital turnover ratios, notably 37.41 in Q3 2022 and 29.59 in Q1 2022. A high working capital turnover ratio may indicate that Marathon Oil Corporation is effectively utilizing its working capital to generate sales revenue. This ratio reflects the efficiency of the company in generating revenue relative to its working capital.

Overall, analyzing these activity ratios provides insight into Marathon Oil Corporation's efficiency in managing inventory, collecting receivables, paying its suppliers, and utilizing working capital to generate sales. A detailed assessment of these ratios can help stakeholders assess the company's operational performance and efficiency in managing its resources.

Average number of days

		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
Days of inventory on hand (DOH)	days	208.89	193.63	147.30	148.62	147.18	84.86	75.43	56.94	53.23	31.79	33.07	34.43	27.22	49.83	48.12	46.98	40.00	16.07	15.93	16.02
Days of sales outstanding (DSO)	days	62.79	77.67	65.85	55.69	52.05	61.17	75.51	85.66	76.24	86.68	96.87	114.85	88.35	67.62	55.71	55.14	78.91	75.67	71.41	68.10
Number of days of payables	days	1,531.88	1,760.46	1,664.70	1,617.37	1,505.92	1,219.41	1,235.32	948.27	767.33	424.46	397.22	405.16	299.81	472.43	435.00	664.95	726.11	310.92	309.92	252.86

Days of Inventory on Hand (DOH) measures how many days, on average, a company holds its inventory before selling it. A higher DOH value indicates that the company may be holding excess inventory, which ties up cash and can increase storage costs. Marathon Oil Corporation's DOH has been fluctuating over the quarters, ranging from 50.39 days to 81.99 days. The recent increase in DOH in Q4 2023 compared to Q3 2023 suggests that the company is holding inventory for a slightly longer period.

Days of Sales Outstanding (DSO) represents the average number of days it takes for a company to collect payment after making a sale. A lower DSO is preferable as it indicates faster cash collection. Marathon Oil Corporation's DSO has varied across quarters, with values ranging from 55.48 days to 85.16 days. The decrease in DSO from Q3 2023 to Q4 2023 suggests an improvement in the company's ability to collect receivables more efficiently.

Number of Days of Payables shows the average number of days a company takes to pay its suppliers. A higher number of days of payables indicates that the company is taking longer to settle its outstanding payables, which could signal potential liquidity concerns or strained supplier relationships. Marathon Oil Corporation's days of payables have also fluctuated over the quarters, ranging from 601.28 days to 921.88 days. The decrease in days of payables from Q3 2023 to Q4 2023 implies that the company may be paying its suppliers more promptly.

In conclusion, while Marathon Oil Corporation's activity ratios have shown fluctuations, monitoring these trends can provide insights into the company's inventory management, accounts receivable collection efficiency, and payment practices.

Long-term

	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
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
Total asset turnover	0.34	0.34	0.36	0.40	0.40	0.45	0.40	0.34	0.32	0.26	0.21	0.16	0.17	0.19	0.22	0.26	0.26	0.28	0.28	0.28

Marathon Oil Corporation's long-term activity ratios provide insights into the efficiency of the company in utilizing its fixed and total assets to generate revenue.

The fixed asset turnover ratio has been relatively consistent in the recent quarters, hovering around 0.37 to 0.42. This indicates that for every dollar invested in fixed assets, the company is generating between $0.37 to $0.42 in revenue. A decreasing trend in this ratio could suggest underutilization or impairment of fixed assets, while an increasing trend may indicate improved efficiency in generating revenue from these assets.

The total asset turnover ratio, on the other hand, has shown a declining trend over the quarters, decreasing from 0.38 in Q4 2022 to 0.33 in Q4 2023. This ratio reflects how efficiently the company is using all its assets to generate sales. A decreasing total asset turnover ratio could indicate that the company is not effectively generating revenue relative to its total asset base.

Overall, Marathon Oil Corporation's long-term activity ratios suggest a need for the company to focus on improving its efficiency in utilizing both fixed and total assets to drive revenue generation and enhance its overall financial performance.