Marathon Oil Corp. (NYSE:MRO)

The analysis of the financial data over the given time period reveals significant fluctuations in both net income and total assets, as well as variations in return on assets (ROA).

Net Income (Loss)

The net income exhibits considerable volatility across the years. Initially, the company recorded positive net income, peaking notably in 2006 at 5,234 million US dollars. However, a declining trend is observed after 2006, with some intermittent recoveries, such as in 2014 with 3,046 million US dollars. The company experienced significant net losses in multiple years, notably in 2015, 2016, and 2017, with losses exceeding 2,000 million US dollars in 2015 and dipping further to 5,723 million by 2017. The years following 2017 displayed a mixed trend with a recovery visible in 2018, a decline again in 2020, and a moderate positive net income in 2021.

Total Assets

Total assets increased from 28,498 million US dollars in 2005 and peaked near 50,014 million US dollars by 2010, indicating a period of asset growth and expansion. This peak was followed by a rapid contraction, with assets declining sharply to around 22,012 million US dollars by 2017. The downward trend in assets continued at a slower pace thereafter, reaching approximately 16,994 million US dollars in 2021. This indicates a substantial reduction in the asset base after 2010, likely reflecting asset sales, depreciation, or restructuring activities.

Return on Assets (ROA)

The ROA displays a pattern consistent with the net income and asset trends. Early years, particularly 2006, recorded a high ROA of 16.98%, indicating efficient asset utilization. ROA then generally declined, reflecting the decrease in profitability relative to assets. Negative ROA values appeared prominently during 2014-2017, with the lowest point in 2017 at -26%, revealing operational challenges and inefficiency. There was a modest recovery in ROA from 2018 onward, reaching 5.57% by 2021, signaling some improvement in profitability relative to the asset base.

In summary, the company faced a period of strong profitability and asset growth in the mid-2000s, followed by a phase of declining performance, net losses, and asset reduction from 2011 onwards. The financial indicators suggest a turnaround attempt post-2017, with gradual improvements in profitability and ROA despite a continued smaller asset base. These trends highlight significant business and operational challenges coupled with restructuring efforts over the examined period.