Marathon Oil Corporation (MRO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,248,000 | 3,951,000 | 1,308,000 | -1,180,000 | 636,000 |
| Total assets | US$ in thousands | 19,575,000 | 19,940,000 | 16,994,000 | 17,956,000 | 20,245,000 |
| Operating ROA | 11.48% | 19.81% | 7.70% | -6.57% | 3.14% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,248,000K ÷ $19,575,000K
= 11.48%
The operating return on assets (ROA) for Marathon Oil Corporation has exhibited fluctuations over the past five years. In 2023, the operating ROA was reported at 10.01%, representing a decrease from the previous year's figure of 16.79%. Despite this decrease, the operating ROA remains positive, indicating that the company generated a positive return on its assets from its core operations.
Comparing the 2023 operating ROA to the figures from 2021, 2020, and 2019, it is evident that Marathon Oil Corporation has shown improved operational efficiency since the negative operating ROA recorded in 2020. The company has made significant strides in increasing its operating efficiency and profitability, as evidenced by the positive operating ROA figures in 2021, 2022, and 2023.
While the 2023 operating ROA is lower than the peak performance seen in 2022, it is important to consider the broader economic and industry context when interpreting these fluctuations. Overall, Marathon Oil Corporation's operating ROA indicates a positive trend in utilizing its assets effectively to generate returns from its operations, albeit with some variability in performance over the years.
Peer comparison
Dec 31, 2023