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 operating profit margin between 2005 and 2021 exhibits extreme volatility and significant structural shifts in operational efficiency. The trajectory is characterized by an initial period of moderate stability, followed by a dramatic expansion in margins coinciding with a reduction in total revenue, and ending with a period of cyclical instability marked by deep operational losses and subsequent recoveries.
- Initial Stability Phase (2005–2010)
- During this period, operating margins fluctuated within a relatively narrow range, peaking at 13.82% in 2006 and reaching a low of 6.71% in 2009. These margins were supported by high revenue volumes, which consistently remained above 53 billion USD, suggesting a business model focused on high turnover with modest profit margins.
- Structural Pivot and Margin Expansion (2011–2013)
- A significant shift occurred in 2011, characterized by a sharp contraction in total revenues—dropping from 72.3 billion USD in 2010 to 14.6 billion USD in 2011. Concurrently, the operating profit margin experienced a substantial increase, rising to 32.82% in 2011 and peaking at 40.36% in 2012. This inverse relationship between revenue scale and margin percentage indicates a transition toward a higher-margin operational structure.
- Cyclical Volatility and Operational Losses (2014–2021)
- The subsequent years were marked by severe instability. A steep decline began in 2014, resulting in significant operational losses that peaked in 2015 with a margin of -48.73%. While profitability returned in 2018, reaching 28.24%, this recovery was short-lived. The margin collapsed again to -38.10% in 2020 before rebounding to 23.35% in 2021, demonstrating a high sensitivity to market volatility.
The long-term trend indicates that the operational profile evolved from a high-revenue, low-margin entity to one with a smaller revenue base and high margin variance. The recurring pattern of deep negative margins followed by sharp recoveries suggests a business model heavily exposed to external price fluctuations or significant periodic operational adjustments.
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