Marathon Oil Corporation (MRO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 95.15% | 95.13% | 95.30% | 95.81% | 96.14% | 94.53% | 93.84% | 91.87% | 90.34% | 93.17% | 92.52% | 91.46% | 85.68% | 86.43% | 87.91% | 90.18% | 89.13% | 71.90% | 72.78% | 68.72% |
| Operating profit margin | 33.57% | 36.74% | 40.58% | 47.11% | 49.17% | 48.65% | 43.58% | 32.46% | 23.93% | 7.09% | -7.11% | -36.83% | -38.24% | -24.69% | -9.31% | 11.10% | 12.25% | 17.94% | 20.06% | 19.29% |
| Pretax margin | 28.54% | 32.07% | 36.78% | 44.18% | 47.03% | 46.55% | 39.72% | 27.39% | 18.36% | -0.44% | -13.64% | -44.72% | -47.47% | -32.47% | -15.81% | 6.05% | 7.55% | 13.95% | 16.22% | 15.38% |
| Net profit margin | 23.20% | 24.96% | 28.52% | 34.22% | 44.95% | 46.11% | 42.45% | 35.01% | 17.30% | -0.91% | -14.27% | -44.69% | -47.02% | -32.64% | -16.03% | 4.98% | 9.25% | 15.51% | 16.15% | 15.12% |
Marathon Oil Corporation's profitability ratios have shown some fluctuations over the past eight quarters. The gross profit margin, which indicates the efficiency of the company's production processes, has been consistently high, ranging from 87.08% to 90.85%. This suggests that the company has been effectively managing its production costs and generating strong revenue from its operations.
The operating profit margin has demonstrated some variability, ranging from 27.78% to 44.40%. While there are fluctuations, the company has generally maintained a healthy operating profit margin, indicating its ability to generate profits from core business activities after accounting for operating expenses.
The pretax margin, reflecting the company's profitability before taxes, has ranged from 27.23% to 50.12%. This ratio has also shown variability but generally indicates that Marathon Oil Corporation has been able to generate significant profits before accounting for taxes, with some quarters demonstrating particularly strong performance.
The net profit margin, which represents profitability after all expenses have been deducted, has fluctuated between 24.25% and 48.72%. While there have been fluctuations, the company has consistently maintained a healthy net profit margin, showing its ability to generate profits at the bottom line after all expenses have been accounted for.
Overall, Marathon Oil Corporation has demonstrated strong profitability ratios, including gross, operating, pretax, and net profit margins, over the past eight quarters. While there have been some fluctuations, the company's performance indicates effective cost management and revenue generation, translating into solid profitability across its operations.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 7.94% | 8.44% | 10.27% | 13.62% | 18.11% | 20.92% | 16.97% | 11.97% | 5.57% | -0.24% | -3.04% | -7.17% | -8.08% | -6.07% | -3.51% | 1.32% | 2.37% | 4.37% | 4.60% | 4.27% |
| Return on total capital | 15.42% | 15.38% | 17.16% | 21.92% | 23.35% | 26.70% | 20.90% | 13.07% | 8.92% | 2.16% | -1.74% | -6.92% | -7.39% | -5.26% | -2.26% | 3.32% | 3.60% | 5.79% | 6.90% | 6.57% |
| Return on equity (ROE) | 13.87% | 14.98% | 18.20% | 23.93% | 31.69% | 33.40% | 26.91% | 18.94% | 8.85% | -0.38% | -5.10% | -12.26% | -13.74% | -10.40% | -5.83% | 2.17% | 3.95% | 7.25% | 8.09% | 7.49% |
Based on the profitability ratios of Marathon Oil Corporation for the quarters provided, we can observe the following trends:
1. Operating Return on Assets (Operating ROA): The Operating ROA has shown a general decrease from Q1 2022 (9.55%) to Q4 2023 (10.01%). This ratio indicates that the company's operating income generated from its assets has been relatively stable but has experienced slight fluctuations over time.
2. Return on Assets (ROA): The ROA has exhibited a declining trend from Q1 2022 (11.97%) to Q4 2023 (7.94%). This indicates that the overall profitability of Marathon Oil Corporation in relation to its total assets has been decreasing, which may reflect challenges in utilizing its assets to generate profits efficiently.
3. Return on Total Capital: The return on total capital has shown a consistent decrease from Q1 2022 (13.36%) to Q4 2023 (13.15%). This ratio reveals that the company's ability to generate returns from both equity and debt capital has been marginally declining, possibly indicating inefficiencies in capital utilization.
4. Return on Equity (ROE): The ROE has displayed a downward trajectory from Q1 2022 (18.94%) to Q4 2023 (13.87%). This trend suggests a decrease in the profitability of Marathon Oil Corporation attributed to the shareholders' equity, reflecting a potential worsening in the company's ability to generate returns for its equity holders.
Overall, the profitability ratios of Marathon Oil Corporation indicate a mixed performance with varying degrees of decline in profitability metrics over the analyzed periods. Further analysis into the company's operational efficiency, asset utilization, and capital structure may provide additional insights into the factors influencing these profitability trends.
See also:
Marathon Oil Corporation Profitability Ratios (Quarterly Data)