Marathon Oil Corporation (MRO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,575,000 | 19,940,000 | 16,994,000 | 17,956,000 | 20,245,000 |
| Total stockholders’ equity | US$ in thousands | 11,205,000 | 11,397,000 | 10,686,000 | 10,561,000 | 12,153,000 |
| Financial leverage ratio | 1.75 | 1.75 | 1.59 | 1.70 | 1.67 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,575,000K ÷ $11,205,000K
= 1.75
The financial leverage ratio of Marathon Oil Corporation has shown some fluctuations over the past five years. The ratio was relatively stable at around 1.70 to 1.75 from 2020 to 2023, indicating a consistent level of financial leverage during this period. However, there was a noticeable increase in the ratio from 1.59 in 2021 to 1.75 in 2022, suggesting a slight rise in the company's reliance on debt to finance its operations.
Overall, the trend in Marathon Oil Corporation's financial leverage ratio indicates that the company has maintained a moderate level of leverage in its capital structure, with fluctuations reflecting potential changes in its debt levels over the years. Investors and stakeholders may need to monitor the company's leverage ratio to assess its financial risk and ability to meet its financial obligations in the future.
Peer comparison
Dec 31, 2023