Marathon Oil Corporation (MRO)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,911,000 | 3,779,000 | 1,004,000 | -1,465,000 | 392,000 |
| Revenue | US$ in thousands | 6,697,000 | 8,036,000 | 5,467,000 | 3,086,000 | 5,190,000 |
| Pretax margin | 28.54% | 47.03% | 18.36% | -47.47% | 7.55% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,911,000K ÷ $6,697,000K
= 28.54%
Marathon Oil Corporation's pretax margin has displayed significant variability over the past five years. In 2023, the pretax margin stood at 29.83%, which represents a decrease compared to the previous year's margin of 50.12%. The peak performance in the period was noted in 2022, with a pretax margin of 50.12%, indicating a strong ability to generate earnings before taxes relative to revenue.
The company experienced a significant decline in profitability in 2020, as indicated by a negative pretax margin of -47.30%. This negative figure suggests that Marathon Oil Corporation incurred more expenses than its revenue could cover before accounting for taxes during this period.
In 2021, the pretax margin recovered to 17.93%, demonstrating an improvement in profitability compared to the previous year. The fluctuating pretax margin indicates the company's sensitivity to various factors such as oil prices, operating costs, and industry conditions.
Overall, Marathon Oil Corporation's pretax margin has shown volatility in recent years, reflecting the company's ability to manage costs effectively and generate profits before tax expenses. Further analysis of the underlying factors driving these fluctuations would provide valuable insights into the company's financial performance and strategic direction.
Peer comparison
Dec 31, 2023