Marathon Oil Corporation (MRO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,248,000 | 3,951,000 | 1,308,000 | -1,180,000 | 636,000 |
| Long-term debt | US$ in thousands | 3,378,000 | 5,521,000 | 3,978,000 | 5,404,000 | 5,501,000 |
| Total stockholders’ equity | US$ in thousands | 11,205,000 | 11,397,000 | 10,686,000 | 10,561,000 | 12,153,000 |
| Return on total capital | 15.42% | 23.35% | 8.92% | -7.39% | 3.60% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,248,000K ÷ ($3,378,000K + $11,205,000K)
= 15.42%
Marathon Oil Corporation's return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital was 13.15%, which represents a decrease from the previous year's 22.87%. Despite the decrease, the return on total capital in 2023 remains positive, indicating the company's ability to generate profit relative to its total capital employed.
In 2021, the return on total capital was 9.33%, showing an improvement from the negative figure of -6.70% in 2020. This suggests that the company was able to effectively utilize its capital to generate returns in 2021. Furthermore, in 2019, Marathon Oil Corporation had a return on total capital of 3.10%, indicating a modest but positive return on its capital investment.
Overall, Marathon Oil Corporation's return on total capital has shown variability over the years, with both positive and negative returns. Analysts may want to further investigate the company's capital allocation strategies and operational performance to better understand the factors impacting its return on total capital.
Peer comparison
Dec 31, 2023