Marathon Oil Corporation (MRO)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.23	0.33	0.27	0.34	0.31

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,378,000K ÷ ($3,378,000K + $11,205,000K)
= 0.23

The debt-to-capital ratio of Marathon Oil Corporation has exhibited some fluctuation over the past five years. The ratio was 0.33 as of December 31, 2023, which indicates that debt comprises 33% of the company's total capital structure. This represents a slight decrease from the previous year's ratio of 0.34. Comparing this to the ratios from 2021 and 2019, where the ratios were 0.27 and 0.31, respectively, we see some variability in how Marathon Oil has utilized debt in relation to its total capital.

In 2022 and 2020, the ratio stood at 0.34, suggesting that roughly one-third of the company's capital was sourced from debt in those years. It is worth noting that a debt-to-capital ratio of less than 0.5 generally indicates that a company is not overly reliant on debt financing, which can be viewed favorably by investors and creditors. However, variations in the ratio over time may point to changes in the company's capital structure and financing decisions.

Overall, Marathon Oil Corporation's debt-to-capital ratio has stayed within a relatively moderate range over the period under consideration, reflecting a balanced approach to funding operations and investments through a mix of debt and equity.