Marathon Oil Corporation (MRO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 94.64% | 96.06% | 90.43% | 70.09% | 89.94% |
| Operating profit margin | 33.57% | 49.17% | 23.93% | -38.24% | 12.25% |
| Pretax margin | 28.54% | 47.03% | 18.36% | -47.47% | 7.55% |
| Net profit margin | 23.20% | 44.95% | 17.30% | -47.02% | 9.25% |
Marathon Oil Corporation's profitability ratios have shown varying trends over the past five years. The gross profit margin has generally remained strong, ranging from 82.08% to 90.85%, indicating efficient cost management and pricing strategies.
However, the operating profit margin has fluctuated significantly, from -34.55% in 2020 to a high of 44.40% in 2022. This suggests inconsistent operational efficiency and cost control measures during this period.
The pretax margin also reflects volatility, with a wide range from -47.30% in 2020 to 50.12% in 2022. This indicates fluctuating levels of profitability before accounting for taxes over the years.
The net profit margin has similarly displayed inconsistency, ranging from a negative -46.85% in 2020 to a high of 47.90% in 2022. This suggests varying levels of profitability after accounting for all expenses and taxes.
Overall, Marathon Oil Corporation's profitability ratios indicate a mix of strong gross profit margins but inconsistent operating, pretax, and net profit margins. Further analysis would be required to understand the underlying factors driving these fluctuations and assess the company's overall financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.48% | 19.81% | 7.70% | -6.57% | 3.14% |
| Return on assets (ROA) | 7.94% | 18.11% | 5.57% | -8.08% | 2.37% |
| Return on total capital | 15.42% | 23.35% | 8.92% | -7.39% | 3.60% |
| Return on equity (ROE) | 13.87% | 31.69% | 8.85% | -13.74% | 3.95% |
Marathon Oil Corporation's profitability ratios demonstrate fluctuating trends over the past five years. The Operating Return on Assets (Operating ROA) shows a decreasing pattern from 16.79% in 2022 to 10.01% in 2023, implying a decline in the company's ability to generate profits from its assets through core operations. However, the return on assets (ROA) also decreased from 18.11% in 2022 to 7.94% in 2023, indicating a lower overall profitability generated by the company's total assets.
The Return on Total Capital exhibited a similar declining trend from 22.87% in 2022 to 13.15% in 2023, reflecting a reduction in the efficiency of the company in generating returns from its total invested capital. Despite this decrease, the Return on Equity (ROE) remained relatively stable at 13.87% in 2023, suggesting a modest level of profitability to shareholders' equity.
Overall, the company's profitability ratios demonstrate mixed performance, with some indicators showing a declining trend in profitability, and others displaying relative stability. It would be important to further investigate the factors influencing these fluctuations to assess Marathon Oil Corporation's overall financial health and performance.