Marathon Oil Corporation (MRO)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,554,000 | 3,612,000 | 946,000 | -1,451,000 | 480,000 |
| Total stockholders’ equity | US$ in thousands | 11,205,000 | 11,397,000 | 10,686,000 | 10,561,000 | 12,153,000 |
| ROE | 13.87% | 31.69% | 8.85% | -13.74% | 3.95% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,554,000K ÷ $11,205,000K
= 13.87%
Marathon Oil Corporation's return on equity (ROE) has shown significant fluctuations over the past five years. In 2023, the ROE stood at 13.87%, which represented a decrease from the previous year's level of 31.69%. Despite this decline, the company's ROE in 2023 remained positive, indicating that the company generated a return on shareholder equity.
The ROE of 13.87% in 2023 is a moderate level compared to the negative ROE of -13.74% in 2020, which suggests that the company has been able to improve its profitability and efficiency in recent years. However, the ROE in 2023 is still below the levels seen in 2021 and 2019, when it was 8.85% and 3.95% respectively.
It is essential to further analyze the factors contributing to the changes in ROE over the years, such as changes in profitability, asset utilization, and leverage. Overall, Marathon Oil Corporation's ROE performance indicates varying levels of efficiency in generating returns for shareholders over the past five years.
Peer comparison
Dec 31, 2023