Marathon Oil Corporation (MRO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.24 | 0.29 | 0.29 | 0.28 | 0.20 | 0.20 | 0.22 | 0.23 | 0.23 | 0.27 | 0.27 | 0.30 | 0.29 | 0.30 | 0.28 | 0.27 | 0.27 | 0.26 | 0.26 |
| 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 |
| Debt-to-equity ratio | 0.30 | 0.43 | 0.51 | 0.50 | 0.48 | 0.32 | 0.32 | 0.34 | 0.37 | 0.37 | 0.46 | 0.46 | 0.51 | 0.50 | 0.49 | 0.46 | 0.45 | 0.45 | 0.46 | 0.45 |
| Financial leverage ratio | 1.75 | 1.77 | 1.77 | 1.76 | 1.75 | 1.60 | 1.59 | 1.58 | 1.59 | 1.59 | 1.67 | 1.71 | 1.70 | 1.71 | 1.66 | 1.65 | 1.67 | 1.66 | 1.76 | 1.75 |
The solvency ratios of Marathon Oil Corporation indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable around 0.29 in the last four quarters, suggesting that about 29% of the company's assets are financed by debt.
The debt-to-capital ratio has also remained steady at around 0.34, implying that 34% of the company's capital structure is comprised of debt. This ratio provides insight into the overall financial leverage of the company.
The debt-to-equity ratio has shown some fluctuation, ranging from 0.48 to 0.52, indicating that the company has relied on debt financing more in some quarters compared to others. A higher debt-to-equity ratio signifies a higher level of financial risk.
The financial leverage ratio has shown a slight increase from 1.58 to 1.77 over the past eight quarters, indicating that the company has been increasingly using debt financing to support its operations. A higher financial leverage ratio suggests a higher level of financial risk and dependency on debt.
Overall, Marathon Oil Corporation's solvency ratios show a stable but increasing trend in debt utilization, which may indicate a shift towards increased financial risk over time. It is important for the company to carefully manage its debt levels to ensure long-term financial stability and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 12.09 | 7.60 | 10.25 | 15.25 | 21.24 | 15.46 | 12.25 | 7.53 | 5.11 | 1.53 | -1.27 | -4.83 | -4.31 | -3.14 | -1.37 | 2.15 | 2.49 | 4.01 | 4.84 | 4.63 |
Marathon Oil Corporation's interest coverage ratio has shown a consistent upward trend in the past eight quarters. The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating earnings. A higher ratio reflects a stronger ability to cover interest expenses.
In Q4 2023, the interest coverage ratio was 6.51, indicating the company generated operating earnings 6.51 times greater than its interest expense for that period. The ratio significantly increased to 11.71 in Q3 2023, indicating a notable improvement in the company's ability to cover interest costs. This trend continued in Q2 2023 and Q1 2023, with interest coverage ratios of 13.75 and 17.69, respectively, showing a consistently improving financial position.
Looking further back, the interest coverage ratio was relatively stable in Q4 2022 and Q3 2022 at 18.68 and 15.39, respectively, before showing a slight decline in Q2 2022 and Q1 2022 with ratios of 12.48 and 8.02, still representing a healthy coverage of interest expenses.
Overall, Marathon Oil Corporation has displayed a strong ability to cover its interest obligations, with the most recent quarters showing an increasing trend in the company's financial health and strength to meet its debt obligations. This indicates a positive financial position and ability to manage interest expenses effectively.