Marathon Oil Corporation (MRO)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,248,000 | 2,476,000 | 2,911,000 | 3,751,000 | 3,951,000 | 3,942,000 | 3,185,000 | 1,996,000 | 1,308,000 | 319,000 | -270,000 | -1,078,000 | -1,180,000 | -857,000 | -378,000 | 580,000 | 636,000 | 1,030,000 | 1,216,000 | 1,166,000 |
| Total assets | US$ in thousands | 19,575,000 | 19,919,000 | 19,919,000 | 20,012,000 | 19,940,000 | 17,858,000 | 18,286,000 | 17,981,000 | 16,994,000 | 17,161,000 | 17,800,000 | 18,233,000 | 17,956,000 | 18,663,000 | 18,567,000 | 19,715,000 | 20,245,000 | 20,373,000 | 21,282,000 | 21,410,000 |
| Operating ROA | 11.48% | 12.43% | 14.61% | 18.74% | 19.81% | 22.07% | 17.42% | 11.10% | 7.70% | 1.86% | -1.52% | -5.91% | -6.57% | -4.59% | -2.04% | 2.94% | 3.14% | 5.06% | 5.71% | 5.45% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,248,000K ÷ $19,575,000K
= 11.48%
Operating Return on Assets (ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. In the case of Marathon Oil Corporation, the operating ROA has shown fluctuations over the past eight quarters.
In Q1 2022, the operating ROA was at its lowest point at 9.55%, indicating that the company was less efficient in generating profits from its operational assets during that period. However, there was a significant improvement in subsequent quarters, with the ratio reaching its peak at 18.80% in Q3 2022. This upswing continued into Q4 2022 when the operating ROA stood at 16.79%.
The trend reversed in 2023, with the operating ROA showing a gradual decline in the first three quarters. The ratio dropped from 15.07% in Q2 2023 to 10.01% in Q4 2023, reflecting a decrease in profitability generated from the company's operational assets.
Overall, the trend in Marathon Oil Corporation's operating ROA indicates some volatility in the company's ability to efficiently utilize its operational assets to generate profits. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational performance and potential areas for improvement.
Peer comparison
Dec 31, 2023