Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Marathon Oil Corp., consolidated balance sheet: assets
US$ in millions
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).
The financial data presents a clear trend of declining total assets over the five-year period analyzed. Total assets decreased from US$ 22,012 million in 2017 to US$ 16,994 million in 2021, indicating a contraction in the asset base by approximately 22.8%.
- Current Assets
- Current assets peaked in 2018 at US$ 2,921 million but experienced a significant decline thereafter, reaching US$ 1,821 million by 2021. The decline is primarily driven by decreases in cash and cash equivalents and other current assets, despite a slight rebound in receivables in 2021 after a dip in 2020. Inventories displayed a consistent downward trend, dropping from US$ 126 million in 2017 to US$ 77 million in 2021.
- Cash and Cash Equivalents
- Cash and cash equivalents increased sharply from US$ 563 million in 2017 to a peak of US$ 1,462 million in 2018, after which they gradually declined to US$ 580 million by 2021. This fluctuation may indicate varying liquidity management or operational cash flows over the years.
- Receivables, Less Reserve
- Receivables remained relatively stable between 2017 and 2019, experienced a notable decline in 2020 to US$ 747 million, and then recovered to US$ 1,142 million in 2021. This pattern may reflect changes in sales, credit policies, or collection efficiency.
- Noncurrent Assets
- The value of noncurrent assets exhibited a steady decline from US$ 19,446 million in 2017 to US$ 15,173 million in 2021. This reduction is consistent with decreases in property, plant, and equipment (net), which fell from US$ 17,665 million to US$ 14,499 million over the period, indicating potential asset disposals, depreciation, or lack of capital expenditure to replenish assets.
- Equity Method Investments and Goodwill
- Equity method investments showed a significant decrease from US$ 847 million in 2017 to US$ 450 million in 2021, highlighting a possible divestiture or impairment of such investments. Goodwill declined from US$ 115 million in 2017 and 2018 to US$ 95 million in 2019, after which data is not available, suggesting potential write-downs or disposals.
- Other Notable Observations
- The appearance of finance lease right-of-use assets in 2021 at US$ 28 million reflects adoption of new accounting standards or leasing activities. Other noncurrent assets decreased significantly from US$ 764 million in 2017 to US$ 196 million in 2021, further contributing to the decline in total assets. Current and noncurrent assets held for sale showed mixed trends, with some values disappearing after 2018, indicating completed sales or reclassifications.
Overall, the data depicts a consistent reduction in asset base, driven by decreases across both current and noncurrent assets, with pronounced declines in property, plant, and equipment, and equity investments. The liquidity position, as indicated by cash and cash equivalents, experienced volatility but returned near initial levels by the end of the period. These patterns may reflect strategic asset management, disposals, reduced capital investment, or operational challenges over the analyzed years.