Return on Equity (ROE)
since 2005
Calculation
Marathon Oil Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 8.85% | = | 100 | × | 946) | ÷ | 10,686) |
| Dec 31, 2020 | -13.74% | = | 100 | × | (1,451) | ÷ | 10,561) |
| Dec 31, 2019 | 3.95% | = | 100 | × | 480) | ÷ | 12,153) |
| Dec 31, 2018 | 9.04% | = | 100 | × | 1,096) | ÷ | 12,128) |
| Dec 31, 2017 | -48.88% | = | 100 | × | (5,723) | ÷ | 11,708) |
| Dec 31, 2016 | -12.20% | = | 100 | × | (2,140) | ÷ | 17,541) |
| Dec 31, 2015 | -11.88% | = | 100 | × | (2,204) | ÷ | 18,553) |
| Dec 31, 2014 | 14.49% | = | 100 | × | 3,046) | ÷ | 21,020) |
| Dec 31, 2013 | 9.06% | = | 100 | × | 1,753) | ÷ | 19,344) |
| Dec 31, 2012 | 8.65% | = | 100 | × | 1,582) | ÷ | 18,283) |
| Dec 31, 2011 | 17.18% | = | 100 | × | 2,946) | ÷ | 17,152) |
| Dec 31, 2010 | 10.80% | = | 100 | × | 2,568) | ÷ | 23,771) |
| Dec 31, 2009 | 6.68% | = | 100 | × | 1,463) | ÷ | 21,910) |
| Dec 31, 2008 | 16.48% | = | 100 | × | 3,528) | ÷ | 21,409) |
| Dec 31, 2007 | 20.58% | = | 100 | × | 3,956) | ÷ | 19,223) |
| Dec 31, 2006 | 35.83% | = | 100 | × | 5,234) | ÷ | 14,607) |
| Dec 31, 2005 | 25.90% | = | 100 | × | 3,032) | ÷ | 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 performance from 2005 to 2021 is characterized by extreme volatility in profitability and a significant long-term erosion of the equity base. The period is marked by an initial phase of high capital efficiency followed by several cycles of severe contraction and partial recovery.
- Return on Equity (ROE) Analysis
- ROE exhibited a sharp peak in 2006 at 35.83%, followed by a general downward trend and heightened instability. A critical collapse in returns occurred between 2015 and 2017, with ROE becoming deeply negative and reaching a trough of -48.88% in 2017. Subsequent years showed a pattern of volatility, with a recovery to 9.04% in 2018, a decline to -13.74% in 2020, and a final return to positivity at 8.85% in 2021.
- Net Income Trends
- Net income transitioned from a period of strong growth, peaking at 5,234 million USD in 2006, to a period of severe instability. Massive losses were recorded from 2015 through 2017, with the 2017 loss of 5,723 million USD representing the most significant deficit in the analyzed period. While net income returned to positive territory in 2018, 2019, and 2021, the magnitude of these gains remained substantially lower than the levels seen between 2005 and 2007.
- Stockholders' Equity Evolution
- Equity grew consistently from 2005, reaching a peak of 23,771 million USD in 2010. This growth was reversed over the following decade, with a sharp decline occurring between 2014 and 2017, coinciding with the period of heaviest net losses. By 2017, stockholders' equity had fallen to 11,708 million USD, effectively returning to 2005 levels. From 2018 to 2021, the equity base remained relatively stagnant, fluctuating within a narrow range between 10,561 million USD and 12,153 million USD.
The data indicates a strong correlation between net losses and the impairment of stockholders' equity, particularly during the 2015-2017 window. The inability to sustain the high ROE levels of the mid-2000s suggests a fundamental shift in the company's profitability profile or a significant increase in the cost of maintaining its capital base.
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Comparison to Competitors
Marathon Oil Corp., ROE, long-term trends, comparison to competitors
| Marathon Oil Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2021 | 8.85% | 11.24% | 17.79% | 13.67% |
| Dec 31, 2020 | -13.74% | -4.21% | -9.05% | -14.28% |
| Dec 31, 2019 | 3.95% | 2.03% | 20.55% | 7.48% |
| Dec 31, 2018 | 9.04% | 9.59% | 19.59% | 10.87% |
| Dec 31, 2017 | -48.88% | 6.21% | -2.79% | 10.50% |
| Dec 31, 2016 | -12.20% | -0.34% | -10.34% | 4.69% |
| Dec 31, 2015 | -11.88% | 3.00% | -11.14% | 9.45% |
| Dec 31, 2014 | 14.49% | 12.41% | 13.23% | 18.65% |
| Dec 31, 2013 | 9.06% | 14.37% | 17.58% | 18.72% |
| Dec 31, 2012 | 8.65% | 19.18% | 17.56% | 27.06% |
| Dec 31, 2011 | 17.18% | 22.16% | 19.07% | 26.59% |
| Dec 31, 2010 | 10.80% | 18.10% | 16.57% | 20.74% |
| Dec 31, 2009 | 6.68% | 11.41% | 7.78% | 17.44% |
| Dec 31, 2008 | 16.48% | 27.62% | -30.81% | 40.03% |
| Dec 31, 2007 | 20.58% | 24.24% | 13.36% | 33.35% |
| Dec 31, 2006 | 35.83% | 24.86% | 18.82% | 34.70% |
| Dec 31, 2005 | 25.90% | 22.50% | 25.66% | 32.50% |
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., ROE, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Marathon Oil Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2021 | 8.85% | 13.24% |
| Dec 31, 2020 | -13.74% | -9.63% |
| Dec 31, 2019 | 3.95% | 6.59% |
| Dec 31, 2018 | 9.04% | 11.08% |
| Dec 31, 2017 | -48.88% | 7.66% |
| Dec 31, 2016 | -12.20% | 1.07% |
| Dec 31, 2015 | -11.88% | 4.49% |
| Dec 31, 2014 | 14.49% | 15.37% |
| Dec 31, 2013 | 9.06% | 16.83% |
| Dec 31, 2012 | 8.65% | 22.69% |
| Dec 31, 2011 | 17.18% | 23.57% |
| Dec 31, 2010 | 10.80% | 18.98% |
| Dec 31, 2009 | 6.68% | 13.07% |
| Dec 31, 2008 | 16.48% | 20.47% |
| Dec 31, 2007 | 20.58% | 24.73% |
| Dec 31, 2006 | 35.83% | 27.20% |
| Dec 31, 2005 | 25.90% | 28.14% |
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., ROE, long-term trends, comparison to industry (energy)
| Marathon Oil Corp. | Energy | |
|---|---|---|
| Dec 31, 2021 | 8.85% | 13.21% |
| Dec 31, 2020 | -13.74% | -12.46% |
| Dec 31, 2019 | 3.95% | 3.63% |
| Dec 31, 2018 | 9.04% | 10.63% |
| Dec 31, 2017 | -48.88% | 6.58% |
| Dec 31, 2016 | -12.20% | 0.52% |
| Dec 31, 2015 | -11.88% | 4.61% |
| Dec 31, 2014 | 14.49% | 15.28% |
| Dec 31, 2013 | 9.06% | 16.85% |
| Dec 31, 2012 | 8.65% | 22.06% |
| Dec 31, 2011 | 17.18% | 22.94% |
| Dec 31, 2010 | 10.80% | 18.51% |
| Dec 31, 2009 | 6.68% | 13.29% |
| Dec 31, 2008 | 16.48% | 21.20% |
| Dec 31, 2007 | 20.58% | 25.23% |
| Dec 31, 2006 | 35.83% | 27.51% |
| Dec 31, 2005 | 25.90% | 28.17% |
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).