Stock Analysis on Net
Stock Analysis on Net

Marathon Oil Corp. (NYSE:MRO)

This company has been moved to the archive! The financial data has not been updated since August 4, 2022.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Marathon Oil Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Federal — (5) (116) 6 (32)
State and local 4 (2) 4 (1) (14)
Foreign 81 15 58 274 483
Current 85 8 (54) 279 437
Federal — — (3) — 41
State and local 1 (8) 3 (23) 2
Foreign (28) (14) (34) 75 (104)
Deferred (27) (22) (34) 52 (61)
Income tax provisions (benefits) 58 (14) (88) 331 376

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Marathon Oil Corp. current increased from 2019 to 2020 and from 2020 to 2021.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Marathon Oil Corp. deferred increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Income tax provisions (benefits) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Marathon Oil Corp. income tax provisions (benefits) increased from 2019 to 2020 and from 2020 to 2021.

Effective Income Tax Rate (EITR)

Marathon Oil Corp., effective income tax rate (EITR) reconciliation

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
Effective income tax rate 6.00% 1.00% -22.00% 23.00% 83.00%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Marathon Oil Corp. effective income tax rate increased from 2019 to 2020 and from 2020 to 2021.

Components of Deferred Tax Assets and Liabilities

Marathon Oil Corp., components of deferred tax assets and liabilities

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Employee benefits 66 77 90 102 111
Operating loss carryforwards 1,541 1,966 1,685 1,304 1,030
Capital loss carryforwards — — 1 2 3
Foreign tax credits 611 611 611 611 611
Investments in subsidiaries and affiliates — — — — 174
Other 52 43 27 5 69
Deferred tax assets, before valuation allowance 2,270 2,697 2,414 2,024 1,998
Valuation allowance (780) (948) (699) (749) (926)
Deferred tax assets 1,490 1,749 1,715 1,275 1,072
Property, plant and equipment (1,544) (1,892) (1,861) (1,018) (1,332)
Accrued revenue — (20) (40) (60) (81)
Other (82) — — (3) (3)
Deferred tax liabilities (1,626) (1,912) (1,901) (1,081) (1,416)
Net deferred tax assets (liabilities) (136) (163) (186) 194 (344)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Deferred tax assets, before valuation allowance Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Marathon Oil Corp. deferred tax assets, before valuation allowance increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Marathon Oil Corp. deferred tax assets increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Marathon Oil Corp. net deferred tax assets (liabilities) increased from 2019 to 2020 and from 2020 to 2021.

Deferred Tax Assets and Liabilities, Classification

Marathon Oil Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Noncurrent deferred tax assets (classified in Other noncurrent assets) — — — 393 489
Noncurrent deferred tax liabilities 136 163 186 199 833

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Noncurrent deferred tax assets (classified in Other noncurrent assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.
Noncurrent deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Marathon Oil Corp. noncurrent deferred tax liabilities decreased from 2019 to 2020 and from 2020 to 2021.

Adjustments to Financial Statements: Removal of Deferred Taxes

Marathon Oil Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 16,994 17,956 20,245 21,321 22,012
Less: Noncurrent deferred tax assets, net — — — 393 489
Total assets (adjusted) 16,994 17,956 20,245 20,928 21,523
Adjustment to Total Liabilities
Total liabilities (as reported) 6,308 7,395 8,092 9,193 10,304
Less: Noncurrent deferred tax liabilities, net 136 163 186 199 833
Total liabilities (adjusted) 6,172 7,232 7,906 8,994 9,471
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 10,686 10,561 12,153 12,128 11,708
Less: Net deferred tax assets (liabilities) (136) (163) (186) 194 (344)
Stockholders’ equity (adjusted) 10,822 10,724 12,339 11,934 12,052
Adjustment to Net Income (loss)
Net income (loss) (as reported) 946 (1,451) 480 1,096 (5,723)
Add: Deferred income tax expense (benefit) (27) (22) (34) 52 (61)
Net income (loss) (adjusted) 919 (1,473) 446 1,148 (5,784)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Marathon Oil Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Marathon Oil Corp., adjusted financial ratios

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 16.89% -46.85% 9.48% 18.57% -130.87%
Adjusted net profit margin 16.41% -47.56% 8.81% 19.45% -132.27%
Total Asset Turnover
Reported total asset turnover 0.33 0.17 0.25 0.28 0.20
Adjusted total asset turnover 0.33 0.17 0.25 0.28 0.20
Financial Leverage
Reported financial leverage 1.59 1.70 1.67 1.76 1.88
Adjusted financial leverage 1.57 1.67 1.64 1.75 1.79
Return on Equity (ROE)
Reported ROE 8.85% -13.74% 3.95% 9.04% -48.88%
Adjusted ROE 8.49% -13.74% 3.61% 9.62% -47.99%
Return on Assets (ROA)
Reported ROA 5.57% -8.08% 2.37% 5.14% -26.00%
Adjusted ROA 5.41% -8.20% 2.20% 5.49% -26.87%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Marathon Oil Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Marathon Oil Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Marathon Oil Corp. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Marathon Oil Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Marathon Oil Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Marathon Oil Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 946 (1,451) 480 1,096 (5,723)
Revenues 5,601 3,097 5,063 5,902 4,373
Profitability Ratio
Net profit margin1 16.89% -46.85% 9.48% 18.57% -130.87%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 919 (1,473) 446 1,148 (5,784)
Revenues 5,601 3,097 5,063 5,902 4,373
Profitability Ratio
Adjusted net profit margin2 16.41% -47.56% 8.81% 19.45% -132.27%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Revenues
= 100 × 946 ÷ 5,601 = 16.89%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenues
= 100 × 919 ÷ 5,601 = 16.41%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Marathon Oil Corp. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Revenues 5,601 3,097 5,063 5,902 4,373
Total assets 16,994 17,956 20,245 21,321 22,012
Activity Ratio
Total asset turnover1 0.33 0.17 0.25 0.28 0.20
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 5,601 3,097 5,063 5,902 4,373
Adjusted total assets 16,994 17,956 20,245 20,928 21,523
Activity Ratio
Adjusted total asset turnover2 0.33 0.17 0.25 0.28 0.20

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 5,601 ÷ 16,994 = 0.33

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 5,601 ÷ 16,994 = 0.33

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Marathon Oil Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 16,994 17,956 20,245 21,321 22,012
Stockholders’ equity 10,686 10,561 12,153 12,128 11,708
Solvency Ratio
Financial leverage1 1.59 1.70 1.67 1.76 1.88
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 16,994 17,956 20,245 20,928 21,523
Adjusted stockholders’ equity 10,822 10,724 12,339 11,934 12,052
Solvency Ratio
Adjusted financial leverage2 1.57 1.67 1.64 1.75 1.79

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 16,994 ÷ 10,686 = 1.59

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 16,994 ÷ 10,822 = 1.57

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Marathon Oil Corp. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 946 (1,451) 480 1,096 (5,723)
Stockholders’ equity 10,686 10,561 12,153 12,128 11,708
Profitability Ratio
ROE1 8.85% -13.74% 3.95% 9.04% -48.88%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 919 (1,473) 446 1,148 (5,784)
Adjusted stockholders’ equity 10,822 10,724 12,339 11,934 12,052
Profitability Ratio
Adjusted ROE2 8.49% -13.74% 3.61% 9.62% -47.99%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 946 ÷ 10,686 = 8.85%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 919 ÷ 10,822 = 8.49%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Marathon Oil Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 946 (1,451) 480 1,096 (5,723)
Total assets 16,994 17,956 20,245 21,321 22,012
Profitability Ratio
ROA1 5.57% -8.08% 2.37% 5.14% -26.00%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 919 (1,473) 446 1,148 (5,784)
Adjusted total assets 16,994 17,956 20,245 20,928 21,523
Profitability Ratio
Adjusted ROA2 5.41% -8.20% 2.20% 5.49% -26.87%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 946 ÷ 16,994 = 5.57%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 919 ÷ 16,994 = 5.41%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Marathon Oil Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.