Operating Profit Margin
since 2005
Calculation
Marathon Oil Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 23.35% | = | 100 | × | 1,308) | ÷ | 5,601) |
| Dec 31, 2020 | -38.10% | = | 100 | × | (1,180) | ÷ | 3,097) |
| Dec 31, 2019 | 12.56% | = | 100 | × | 636) | ÷ | 5,063) |
| Dec 31, 2018 | 28.24% | = | 100 | × | 1,667) | ÷ | 5,902) |
| Dec 31, 2017 | -3.04% | = | 100 | × | (133) | ÷ | 4,373) |
| Dec 31, 2016 | -22.33% | = | 100 | × | (900) | ÷ | 4,031) |
| Dec 31, 2015 | -48.73% | = | 100 | × | (2,691) | ÷ | 5,522) |
| Dec 31, 2014 | 14.74% | = | 100 | × | 1,599) | ÷ | 10,846) |
| Dec 31, 2013 | 35.89% | = | 100 | × | 5,204) | ÷ | 14,501) |
| Dec 31, 2012 | 40.36% | = | 100 | × | 6,332) | ÷ | 15,688) |
| Dec 31, 2011 | 32.82% | = | 100 | × | 4,813) | ÷ | 14,663) |
| Dec 31, 2010 | 7.35% | = | 100 | × | 5,317) | ÷ | 72,321) |
| Dec 31, 2009 | 6.71% | = | 100 | × | 3,590) | ÷ | 53,470) |
| Dec 31, 2008 | 9.10% | = | 100 | × | 7,023) | ÷ | 77,193) |
| Dec 31, 2007 | 10.29% | = | 100 | × | 6,640) | ÷ | 64,552) |
| Dec 31, 2006 | 13.82% | = | 100 | × | 8,967) | ÷ | 64,896) |
| Dec 31, 2005 | 8.37% | = | 100 | × | 5,302) | ÷ | 63,311) |
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 data reveals several distinct trends in operational income, revenue, and operating profit margin over the observed period.
- Income (loss) from operations
- The operational income showed considerable volatility. It started strong in 2005 at 5,302 million USD, peaked in 2006 at 8,967 million USD, and fluctuated significantly thereafter. Notable declines occurred in 2014 and 2015 with losses of -2,691 million USD and -900 million USD, respectively. The period after 2015 showed irregular recovery patterns with operational income oscillating from negative to modest positive figures, culminating in 1,308 million USD in 2021. Overall, the data indicates instability in operational profit generation over the years.
- Revenues
- Revenues began at a robust 63,311 million USD in 2005, peaking in 2008 at 77,193 million USD. A sharp decline followed in 2009, with revenues dropping to 53,470 million USD. From 2010 onward, revenues exhibit a steep and continuous decrease through 2016, reaching their lowest at 4,031 million USD. Post-2016 shows a marginal increase but remains significantly lower than earlier years, ending at 5,601 million USD in 2021. This pattern suggests a contraction in sales or production scale during the latter years.
- Operating profit margin
- The operating profit margin displayed considerable variability. Initial margins were moderate, ranging from 8.37% to 13.82% between 2005 and 2006, but significantly improved to peak levels of over 40% in 2012. A drastic margin drop occurred in 2014 and 2015, turning deeply negative at -48.73% and -22.33%. Margins remained weak with slight improvements but still negative or near zero until 2017. A recovery trend appears from 2018 onwards, with margins improving to positive territory, finishing at 23.35% in 2021. This margin volatility corresponds closely with fluctuations seen in income and revenue, reflecting operational challenges and market conditions affecting profitability.
In summary, the company experienced considerable financial instability throughout the period, marked by high revenue and income in the early years, followed by sharp declines in both metrics mid-period. Profit margins have been highly volatile, mirroring the fluctuations in revenue and income, but show signs of recovery in the most recent years under review. This data suggests periods of distress possibly due to market or operational factors, with attempted stabilization in the latter part of the timeline.