Debt to Equity
since 2005
Calculation
Marathon Oil Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Commercial paper and long-term debt, including current portion1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 0.38 | = | 4,014) | ÷ | 10,686) |
| Dec 31, 2020 | 0.51 | = | 5,404) | ÷ | 10,561) |
| Dec 31, 2019 | 0.45 | = | 5,501) | ÷ | 12,153) |
| Dec 31, 2018 | 0.45 | = | 5,499) | ÷ | 12,128) |
| Dec 31, 2017 | 0.47 | = | 5,494) | ÷ | 11,708) |
| Dec 31, 2016 | 0.41 | = | 7,275) | ÷ | 17,541) |
| Dec 31, 2015 | 0.39 | = | 7,277) | ÷ | 18,553) |
| Dec 31, 2014 | 0.30 | = | 6,391) | ÷ | 21,020) |
| Dec 31, 2013 | 0.34 | = | 6,597) | ÷ | 19,344) |
| Dec 31, 2012 | 0.38 | = | 6,896) | ÷ | 18,283) |
| Dec 31, 2011 | 0.28 | = | 4,815) | ÷ | 17,152) |
| Dec 31, 2010 | 0.33 | = | 7,896) | ÷ | 23,771) |
| Dec 31, 2009 | 0.39 | = | 8,532) | ÷ | 21,910) |
| Dec 31, 2008 | 0.34 | = | 7,185) | ÷ | 21,409) |
| Dec 31, 2007 | 0.38 | = | 7,215) | ÷ | 19,223) |
| Dec 31, 2006 | 0.24 | = | 3,532) | ÷ | 14,607) |
| Dec 31, 2005 | 0.34 | = | 4,013) | ÷ | 11,705) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial leverage profile demonstrates a period of relative stability followed by a phase of increasing leverage and a subsequent correction. Between 2005 and 2014, the organization maintained a conservative capital structure, with the debt to equity ratio generally fluctuating between 0.24 and 0.39.
- Debt Obligations Trend
- Total debt levels exhibited significant volatility throughout the period. A substantial increase occurred between 2006 and 2009, peaking at 8,532 million USD. Following a sharp reduction in 2011 to 4,815 million USD, debt levels remained relatively stable until 2017, after which a consistent downward trend emerged. By December 31, 2021, total debt was reduced to 4,014 million USD, returning to levels nearly identical to those seen in 2005.
- Equity Position Analysis
- Stockholders' equity showed a strong growth trajectory from 2005 to 2010, reaching a peak of 23,771 million USD. However, a long-term contraction is observed starting after 2014, where equity declined from 21,020 million USD to a low of 10,561 million USD in 2020. This sustained reduction in the equity base acted as a primary driver for the increase in the leverage ratio during the latter part of the period.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio remained range-bound for the first decade of the analysis. A distinct upward trend began in 2015, with the ratio climbing steadily from 0.39 to a peak of 0.51 in 2020. This increase in leverage was not driven by an expansion of debt, but rather by the erosion of stockholders' equity. A significant correction occurred in 2021, where the ratio fell to 0.38, primarily resulting from a reduction in total debt obligations.
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Comparison to Competitors
Marathon Oil Corp., debt to equity, long-term trends, comparison to competitors
| Marathon Oil Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2021 | 0.38 | 0.23 | 0.44 | 0.28 |
| Dec 31, 2020 | 0.51 | 0.34 | 0.51 | 0.43 |
| Dec 31, 2019 | 0.45 | 0.19 | 0.43 | 0.24 |
| Dec 31, 2018 | 0.45 | 0.22 | 0.47 | 0.20 |
| Dec 31, 2017 | 0.47 | 0.26 | 0.64 | 0.23 |
| Dec 31, 2016 | 0.41 | 0.32 | 0.78 | 0.26 |
| Dec 31, 2015 | 0.39 | 0.25 | 0.63 | 0.23 |
| Dec 31, 2014 | 0.30 | 0.18 | 0.43 | 0.17 |
| Dec 31, 2013 | 0.34 | 0.14 | 0.42 | 0.13 |
| Dec 31, 2012 | 0.38 | 0.09 | 0.45 | 0.07 |
| Dec 31, 2011 | 0.28 | 0.08 | 0.35 | 0.11 |
| Dec 31, 2010 | 0.33 | 0.11 | 0.34 | 0.10 |
| Dec 31, 2009 | 0.39 | 0.11 | 0.46 | 0.09 |
| Dec 31, 2008 | 0.34 | 0.10 | 0.50 | 0.08 |
| Dec 31, 2007 | 0.38 | 0.09 | 0.24 | 0.08 |
| Dec 31, 2006 | 0.24 | 0.14 | 0.33 | 0.07 |
| Dec 31, 2005 | 0.34 | 0.21 | 0.24 | 0.07 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Marathon Oil Corp., debt to equity, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Marathon Oil Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2021 | 0.38 | 0.28 |
| Dec 31, 2020 | 0.51 | 0.40 |
| Dec 31, 2019 | 0.45 | 0.24 |
| Dec 31, 2018 | 0.45 | 0.23 |
| Dec 31, 2017 | 0.47 | 0.28 |
| Dec 31, 2016 | 0.41 | 0.33 |
| Dec 31, 2015 | 0.39 | 0.28 |
| Dec 31, 2014 | 0.30 | 0.21 |
| Dec 31, 2013 | 0.34 | 0.17 |
| Dec 31, 2012 | 0.38 | 0.13 |
| Dec 31, 2011 | 0.28 | 0.15 |
| Dec 31, 2010 | 0.33 | 0.16 |
| Dec 31, 2009 | 0.39 | 0.18 |
| Dec 31, 2008 | 0.34 | 0.18 |
| Dec 31, 2007 | 0.38 | 0.13 |
| Dec 31, 2006 | 0.24 | 0.17 |
| Dec 31, 2005 | 0.34 | 0.15 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Marathon Oil Corp., debt to equity, long-term trends, comparison to industry (energy)
| Marathon Oil Corp. | Energy | |
|---|---|---|
| Dec 31, 2021 | 0.38 | 0.31 |
| Dec 31, 2020 | 0.51 | 0.44 |
| Dec 31, 2019 | 0.45 | 0.26 |
| Dec 31, 2018 | 0.45 | 0.25 |
| Dec 31, 2017 | 0.47 | 0.30 |
| Dec 31, 2016 | 0.41 | 0.35 |
| Dec 31, 2015 | 0.39 | 0.30 |
| Dec 31, 2014 | 0.30 | 0.22 |
| Dec 31, 2013 | 0.34 | 0.19 |
| Dec 31, 2012 | 0.38 | 0.15 |
| Dec 31, 2011 | 0.28 | 0.16 |
| Dec 31, 2010 | 0.33 | 0.17 |
| Dec 31, 2009 | 0.39 | 0.19 |
| Dec 31, 2008 | 0.34 | 0.19 |
| Dec 31, 2007 | 0.38 | 0.15 |
| Dec 31, 2006 | 0.24 | 0.19 |
| Dec 31, 2005 | 0.34 | 0.16 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).