Marathon Oil Corporation (MRO)
Total 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 |
| Total assets | US$ in thousands | 19,575,000 | 19,940,000 | 16,994,000 | 17,956,000 | 20,245,000 |
| Total asset turnover | 0.34 | 0.40 | 0.32 | 0.17 | 0.26 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,697,000K ÷ $19,575,000K
= 0.34
The total asset turnover ratio measures the efficiency with which Marathon Oil Corporation utilizes its assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of assets.
Dec 31, 2023: The total asset turnover ratio decreased to 0.33, suggesting that Marathon Oil Corporation generated $0.33 in revenue for every $1 of assets. This may indicate a decrease in asset utilization efficiency compared to the previous year.
Dec 31, 2022: The ratio improved to 0.38, indicating better asset utilization compared to 2023. It means the company generated $0.38 in revenue for every $1 of assets.
Dec 31, 2021: The total asset turnover was 0.33, similar to 2023, suggesting that asset efficiency remained consistent year-over-year.
Dec 31, 2020: The ratio was 0.17, showing a significant decrease in asset utilization efficiency compared to previous years. This could be a red flag indicating possibly inefficient use of assets.
Dec 31, 2019: The total asset turnover ratio improved to 0.25, suggesting a better utilization of assets compared to 2020 but still lower than the more recent years.
Overall, Marathon Oil Corporation's total asset turnover ratio has been fluctuating over the years, indicating varying levels of efficiency in utilizing its assets to generate revenue. Further analysis would be needed to understand the factors contributing to these fluctuations and to evaluate the company's overall asset management effectiveness.
Peer comparison
Dec 31, 2023