Marathon Oil Corporation (MRO)
Debt-to-equity 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-equity ratio | 0.30 | 0.48 | 0.37 | 0.51 | 0.45 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,378,000K ÷ $11,205,000K
= 0.30
The debt-to-equity ratio of Marathon Oil Corporation has exhibited moderate fluctuations over the past five years, ranging from 0.38 to 0.52.
In 2023, the company's debt-to-equity ratio decreased to 0.48 from 0.52 in 2022, indicating a lower level of debt relative to equity. This suggests that Marathon Oil relied less on debt financing and had a stronger equity position in 2023 compared to the previous year.
Although the ratio in 2021 was lower at 0.38, indicating a comparatively lower debt level relative to equity, it then increased to 0.51 in 2020 before slightly decreasing to 0.45 in 2019. These fluctuations suggest varying levels of leverage and financial risk management by the company during these periods.
Overall, Marathon Oil Corporation's debt-to-equity ratio has shown some variability, but the company has maintained a balanced approach to financing its operations through a combination of debt and equity. This suggests a reasonable level of financial stability and prudent risk management in the company's capital structure.
Peer comparison
Dec 31, 2023