Marathon Oil Corporation (MRO)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,378,000 | 4,876,000 | 5,724,000 | 5,723,000 | 5,521,000 | 3,579,000 | 3,709,000 | 3,908,000 | 3,978,000 | 3,977,000 | 4,875,000 | 4,905,000 | 5,404,000 | 5,405,000 | 5,530,000 | 5,529,000 | 5,501,000 | 5,529,000 | 5,528,000 | 5,528,000 |
| Total stockholders’ equity | US$ in thousands | 11,205,000 | 11,226,000 | 11,244,000 | 11,388,000 | 11,397,000 | 11,187,000 | 11,532,000 | 11,366,000 | 10,686,000 | 10,796,000 | 10,634,000 | 10,671,000 | 10,561,000 | 10,892,000 | 11,175,000 | 11,958,000 | 12,153,000 | 12,271,000 | 12,101,000 | 12,208,000 |
| Debt-to-capital ratio | 0.23 | 0.30 | 0.34 | 0.33 | 0.33 | 0.24 | 0.24 | 0.26 | 0.27 | 0.27 | 0.31 | 0.31 | 0.34 | 0.33 | 0.33 | 0.32 | 0.31 | 0.31 | 0.31 | 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 been relatively stable over the past eight quarters, ranging from 0.26 to 0.34. This ratio indicates the proportion of the company's capital that is financed through debt and is a measure of the company's leverage.
A ratio of 0.33 to 0.34 suggests that Marathon Oil Corporation relies more on debt financing compared to equity to support its operations and growth initiatives. However, the consistency of the ratio within a narrow range over time indicates that the company has been maintaining a balanced capital structure.
It is important to note that while having some level of debt is common and can be advantageous for tax benefits and capital flexibility, high debt levels can also expose the company to financial risk, especially in times of economic uncertainty or rising interest rates.
Overall, Marathon Oil Corporation's debt-to-capital ratio indicates a moderate level of debt in its capital structure, which is being managed within a fairly stable range in recent quarters. This stability suggests that the company is maintaining a disciplined approach to managing its debt levels and financial risk.
Peer comparison
Dec 31, 2023