Marathon Oil Corp. (NYSE:MRO)

Total Asset Turnover

The reported and adjusted total asset turnover ratios show a fluctuating trend over the five-year period. Starting at 0.20 in 2017, the ratio increased to 0.28 in 2018, followed by a slight decline to 0.25 in 2019. A significant drop is observed in 2020 to 0.17, coinciding with economic disruptions. However, there is a strong recovery in 2021 reaching 0.33, the highest level in this timeframe, indicating an improvement in asset efficiency.

Current Ratio

The liquidity position, as measured by both reported and adjusted current ratios, improved from 1.3 in 2017 to a peak of around 1.59-1.60 in 2018, suggesting better short-term financial health. Subsequently, the ratio declined to roughly 1.22-1.23 in 2019, then improved slightly in 2020. In 2021, there is a noticeable decrease to approximately 1.11-1.12, possibly reflecting tighter liquidity management or increased current liabilities relative to current assets.

Debt to Equity

The debt to equity ratio remained relatively stable in the earlier years, fluctuating modestly around 0.45-0.48 from 2017 through 2019. An increase to approximately 0.51-0.52 in 2020 indicates a higher reliance on debt financing during this period. In 2021, this ratio decreased substantially to 0.38, suggesting a reduction in leverage or an increase in equity base.

Debt to Capital

The reported and adjusted debt to capital ratios closely mirror each other and maintain a relatively stable trend around 0.31-0.32 from 2017 to 2019. This ratio rose slightly to 0.34 in 2020, consistent with the increase in debt usage observed in the debt to equity ratio. In 2021, the ratio declined to 0.27, indicating an overall reduction in the proportion of debt within the company’s capital structure.

Financial Leverage

Financial leverage, as indicated by both reported and adjusted figures, shows a gradual decline over the five years. The ratio starts at 1.88 in 2017, decreases steadily through the subsequent years, ending at about 1.57-1.59 in 2021. This suggests a trend towards a more conservative capital structure and reduced reliance on debt to amplify equity returns.

Net Profit Margin

The net profit margin displays significant volatility during the period. A deeply negative margin (-130.87% reported) in 2017 sharply reverses to strong positive figures in 2018 (above 18%), then declines to just under 10% in 2019. A steep negative margin recurs in 2020 (-46.85%) reflecting significant losses, possibly due to economic or sector-specific challenges. The margin recovers again in 2021 to about 16.89%, indicating improved profitability. Adjusted margins show a similar pattern but with slightly less extreme values.

Return on Equity (ROE)

ROE trends align with net profit margins, showing negative returns in 2017 (-48.88% reported) followed by a positive recovery in 2018 (9.04%). The ratio decreases to modest positive values in 2019, then dips into negative territory in 2020 (-13.74%), before returning to positive territory in 2021 (8.85%). Adjusted ROE figures reflect similar movements, confirming the volatility in shareholder returns over the period.

Return on Assets (ROA)

ROA shows a negative starting point in 2017 (-26% reported), improves to positive levels in 2018 and 2019, then falls back to negative in 2020 (-8.08%), followed by a positive return in 2021 (5.57%). Both reported and adjusted ROA figures follow this pattern, emphasizing the fluctuation in asset profitability, closely linked to the company’s operational performance and market conditions during these years.

Revenue Trends

Revenue exhibited variability over the analyzed period. Starting at 4,373 million US dollars in 2017, it increased notably to 5,902 million in 2018. In 2019, there was a decline to 5,063 million, followed by a sharp reduction in 2020 to 3,097 million. The figure rebounded in 2021, reaching 5,601 million, indicating a recovery closer to pre-2020 levels.

Total Assets

The total assets showed a consistent downward trend throughout the period. Assets reduced from 22,012 million US dollars in 2017 to 16,994 million in 2021. This steady decline may reflect asset sales, depreciation, or a strategic reduction in asset base.

Total Asset Turnover

The reported total asset turnover ratio demonstrated fluctuations but ended higher than the starting point. Initially, it was 0.2 in 2017, increased to 0.28 in 2018, and then slightly decreased to 0.25 in 2019. A significant drop occurred in 2020, declining to 0.17, consistent with the substantial revenue decrease and reduction in asset efficiency during that period. However, in 2021, the ratio sharply rose to 0.33, the highest in the period, indicating improved asset utilization.

Adjusted Total Assets and Turnover

Adjusted total assets closely align with the reported total assets, showing minor differences but the same downward trend from 21,641 million in 2017 to 17,009 million in 2021. Correspondingly, the adjusted total asset turnover ratio mirrors the pattern of the reported turnover, confirming the reliability of the observed trends.

Summary

The financial data reveals a period characterized by declining asset levels accompanied by fluctuating revenues. The significant dip in revenue and asset turnover in 2020 likely reflects external challenges impacting operational performance. The recovery in 2021 is evident in the rebound in revenue and improved asset turnover ratio, suggesting enhanced efficiency in using the asset base. Overall, despite decreasing asset quantities, the company appears to have improved its asset utilization efficiency by 2021.

Current Assets

Current assets demonstrated an initial increase from 2566 million USD in 2017 to a peak of 2921 million USD in 2018. This was followed by a consistent decrease over the next two years, reaching a low of 1612 million USD in 2020. There was a slight recovery in 2021, with current assets increasing to 1821 million USD, although this remains below the levels seen in 2017 and 2018.

Current Liabilities

Current liabilities showed a steady decline from 1968 million USD in 2017 to 1213 million USD in 2020. However, in 2021, current liabilities surged to 1637 million USD. Despite this increase, the 2021 level remained lower than the figures recorded in 2017 and 2018.

Reported Current Ratio

The reported current ratio rose from 1.3 in 2017 to a high of 1.59 in 2018, reflecting improved liquidity during this period. This ratio then declined to 1.22 in 2019 and slightly recovered to 1.33 in 2020, before dropping again to 1.11 in 2021. The overall trend indicates some volatility in liquidity, with a general weakening by the end of the period studied.

Adjusted Current Assets

Adjusted current assets followed a trend similar to unadjusted current assets, increasing from 2578 million USD in 2017 to 2932 million USD in 2018, then decreasing sharply to 1634 million USD in 2020. A moderate increase to 1836 million USD was observed in 2021, indicating consistent adjustments closely tracking the original asset values.

Adjusted Current Ratio

The adjusted current ratio mirrored the behavior of the reported current ratio, rising from 1.31 in 2017 to 1.6 in 2018, then declining to 1.23 in 2019. It experienced a slight rise to 1.35 in 2020 before decreasing again to 1.12 in 2021. This pattern points to similar liquidity challenges as indicated by the reported current ratio figures.

Total debt

The total debt remained relatively stable from 2017 through 2019, fluctuating marginally around the 5494 to 5501 million US dollars range. In 2020, a slight decrease to 5404 million US dollars was observed, followed by a significant reduction in 2021 to 4044 million US dollars. This indicates a concerted effort to reduce debt levels in the most recent year.

Stockholders’ equity

Stockholders’ equity showed a moderate increase from 11708 million US dollars in 2017 to a peak of 12153 million US dollars in 2019. In 2020, equity declined to 10561 million US dollars but stabilized and showed a modest recovery to 10686 million US dollars in 2021. The decrease in 2020 could be attributable to external factors impacting retained earnings or asset values during that period.

Reported debt to equity ratio

The reported debt to equity ratio exhibited a downward trend overall, starting at 0.47 in 2017 and slightly decreasing to 0.45 in both 2018 and 2019. It then increased to 0.51 in 2020, reflecting a higher relative debt level compared to equity, before significantly dropping to 0.38 in 2021. This indicates improved leverage and a stronger equity position relative to debt by the end of the period.

Adjusted total debt

The adjusted total debt values paralleled the total debt figures closely, initially increasing from 5600 million US dollars in 2017 to 5709 million US dollars in 2019. A decrease to 5541 million US dollars occurred in 2020, followed by a substantial decline to 4107 million US dollars in 2021. This adjustment corroborates the apparent debt reduction observed in the reported figures.

Adjusted stockholders’ equity

Adjusted stockholders’ equity fluctuated moderately, rising from 12064 million US dollars in 2017 to approximately 12350 million US dollars in 2019. There was a marked decline to 10746 million US dollars in 2020, followed by a slight increase to 10837 million US dollars in 2021. The adjusted equity trends mirror the reported equity but suggest a somewhat greater volatility in the adjusted figures.

Adjusted debt to equity ratio

The adjusted debt to equity ratio showed slight variability, starting at 0.46 in 2017, increasing to 0.48 in 2018, then slightly decreasing to 0.46 in 2019. A peak of 0.52 was reached in 2020, reflecting higher leverage, before a significant drop to 0.38 in 2021, consistent with the reported ratio. This confirms an overall improvement in leverage, with the company reducing its reliance on debt financing relative to equity in the most recent year.

Total Debt

Total debt remained relatively stable from 2017 through 2019, holding around 5,494 to 5,501 million USD. A slight reduction is observed in 2020 with total debt decreasing to 5,404 million USD, followed by a more substantial decline in 2021 to 4,044 million USD. This indicates a notable reduction in debt levels during the most recent period.

Total Capital

Total capital increased slightly from 17,202 million USD in 2017 to a peak of 17,654 million USD in 2019. After this, there was a decline observed, with total capital decreasing to 15,965 million USD in 2020 and further down to 14,730 million USD in 2021. This suggests a contraction in the overall capital base over the last two years reported.

Reported Debt to Capital Ratio

The reported debt to capital ratio was relatively stable around 0.31 to 0.32 from 2017 through 2019. It then increased to 0.34 in 2020, reflecting a higher proportion of debt relative to capital during that year. However, there was a notable decrease to 0.27 in 2021. This improvement indicates reduced leverage and possibly better financial risk management in 2021.

Adjusted Total Debt

Adjusted total debt follows a pattern similar to reported total debt, increasing slightly from 5,600 million USD in 2017 to 5,709 million USD in 2019. It then declines to 5,541 million USD in 2020 and sharply to 4,107 million USD in 2021. The adjusted figures reinforce the trend of debt reduction in the most recent year reported.

Adjusted Total Capital

Adjusted total capital remains fairly steady at around 17,600 million USD from 2017 through 2018, rising to just over 18,000 million USD in 2019. It then declines to 16,287 million USD in 2020 and 14,944 million USD in 2021, paralleling the reduction seen in reported total capital. This confirms a contraction in the capital base under adjusted measures as well.

Adjusted Debt to Capital Ratio

This ratio stays consistent at approximately 0.32 from 2017 through 2019, rises to 0.34 in 2020, and then falls to 0.27 in 2021, mirroring the pattern of the reported debt to capital ratio. The decrease in 2021 under adjusted measures substantiates the decreased leverage position.

Total Assets

Total assets demonstrate a consistent declining trend over the five-year period, decreasing from 22,012 million US dollars at the end of 2017 to 16,994 million US dollars by the end of 2021. This represents a reduction of approximately 22.8%, indicating a significant contraction in the asset base over the analyzed period.

Stockholders’ Equity

Stockholders' equity shows a less pronounced downward trend compared to total assets. It increased moderately from 11,708 million US dollars in 2017 to 12,153 million in 2019, then declined to 10,686 million by 2021. Overall, equity decreased by around 8.7% from 2017 to 2021, suggesting some retention of capital despite the decline in total assets.

Reported Financial Leverage

The reported financial leverage ratio, defined as total assets divided by stockholders' equity, steadily decreased from 1.88 in 2017 to 1.59 in 2021. This decline signifies a gradual reduction in leverage, implying that the company is relying less on debt relative to equity to finance its assets.

Adjusted Total Assets

Adjusted total assets follow a similar downward pattern akin to reported total assets, declining from 21,641 million US dollars in 2017 to 17,009 million in 2021. The values are consistently slightly lower than reported total assets but mirror the same overall trend of contraction in asset size.

Adjusted Stockholders’ Equity

Adjusted stockholders' equity displays moderate variation, increasing from 12,064 million US dollars in 2017 to a peak of 12,350 million in 2019 before falling to 10,837 million in 2021. This pattern corresponds closely with the reported equity figures, indicating some fluctuations in fiscal adjustments over the period.

Adjusted Financial Leverage

Adjusted financial leverage reduces over time from 1.79 in 2017 to 1.57 in 2021, consistent with the trend observed in reported financial leverage. This steady decrease reflects an ongoing effort to lower leverage levels when accounting for adjusted equity and assets, pointing to improved balance sheet stability.

Net Income (Loss)

The net income exhibited significant volatility over the analyzed period. There was a substantial loss of $5,723 million at the end of 2017, followed by a rebound to a positive $1,096 million in 2018. The positive net income continued in 2019 at $480 million but dropped again to a loss of $1,451 million in 2020. The year 2021 saw a return to profitability with a net income of $946 million. This pattern indicates an unstable profitability trend with pronounced fluctuations, reflecting potentially volatile operational or market conditions.

Revenues

Revenues increased from $4,373 million in 2017 to a peak of $5,902 million in 2018, then experienced a decline in 2019 to $5,063 million and a more pronounced drop in 2020 to $3,097 million. Revenues recovered sharply in 2021 to $5,601 million. Overall, revenues showed an upward tendency with notable susceptibility to market or operational impacts, especially during the 2020 downturn.

Reported Net Profit Margin (%)

The reported net profit margin mirrored the volatility seen in net income. In 2017, the margin was deeply negative at -130.87%, recovering to a healthy 18.57% in 2018. Afterwards, it declined to 9.48% in 2019 and dropped sharply to -46.85% in 2020, before improving again to 16.89% in 2021. These fluctuations reflect inconsistent profitability relative to revenues throughout the period.

Adjusted Net Income (Loss)

Adjusted net income followed a pattern similar to net income but with less severe losses. The adjusted figures showed a loss of $864 million in 2017, followed by gains in 2018 ($1,272 million) and 2019 ($488 million). Losses increased in 2020 to $1,494 million but returned to a profit of $921 million in 2021. This adjusted perspective suggests that non-recurring or extraordinary items likely influenced the reported net income values, but the overall profitability trend remained uneven.

Adjusted Net Profit Margin (%)

The adjusted net profit margin ranged from -19.76% in 2017 to 21.55% in 2018, indicating recovery and profitability improvements. Margins then declined to 9.64% in 2019, decreased sharply to -48.24% in 2020, and finally recovered to 16.44% in 2021. The trends in adjusted margins reaffirm the instability in profitability, with significant deterioration in 2020 and marked recovery in 2021.

Net Income (Loss)

The company experienced significant volatility in net income over the five-year period. In 2017, a substantial loss of $5,723 million was recorded, followed by a notable recovery to a profit of $1,096 million in 2018. The profit declined sharply in 2019 to $480 million and then reverted to a loss of $1,451 million in 2020. There was a return to profitability in 2021 with net income reaching $946 million, indicating a fluctuating performance with periods of both significant losses and gains.

Stockholders’ Equity

Stockholders’ equity showed relative stability with minor fluctuations. It increased modestly from $11,708 million in 2017 to $12,153 million in 2019 before declining to $10,561 million in 2020. A slight recovery was seen in 2021, with equity rising to $10,686 million. Overall, equity declined from its peak in 2019, reflecting possible impacts from operational performance and market conditions.

Reported Return on Equity (ROE)

The reported ROE mirrored the fluctuations in net income. Starting with a significant negative return of -48.88% in 2017, it improved to 9.04% in 2018 and dropped considerably in 2019 to 3.95%. The ROE deteriorated sharply again in 2020 to -13.74% before rising to 8.85% in 2021. This demonstrates an inconsistent ability to generate returns for shareholders across the period.

Adjusted Net Income (Loss)

The adjusted net income figures follow a pattern similar to the reported net income but show slightly moderated extremes. The company recorded a loss of $864 million in 2017, which reversed to a profit of $1,272 million in 2018. Adjusted income declined to $488 million in 2019 and then to a loss of $1,494 million in 2020. A recovery back to profit occurred in 2021 with $921 million. The adjusted figures suggest underlying performance trends consistent with reported results but account for certain adjustments that impact profitability.

Adjusted Stockholders’ Equity

Adjusted equity values show a pattern similar to reported equity but with smoother transitions. It started at $12,064 million in 2017, decreased slightly to $11,945 million in 2018, increased to $12,350 million in 2019, then declined sharply to $10,746 million in 2020, and experienced a marginal increase to $10,837 million in 2021. These adjustments may reflect recalibrated asset or liability valuations impacting equity.

Adjusted Return on Equity (ROE)

The adjusted ROE replicates the volatility observed in reported ROE with values ranging from -7.16% in 2017 to a peak of 10.65% in 2018. It reduced significantly to 3.95% in 2019, dropped further to -13.90% in 2020, and recovered to 8.50% in 2021. The adjusted ROE confirms the sensitivity of profitability to the company’s equity base and underlying performance drivers, showing considerable fluctuation during the period under review.

The financial data reveals several notable trends over the five-year period.

Net Income (Loss)

There is significant volatility in net income, beginning with a substantial loss in 2017. This was followed by a positive rebound in 2018 and 2019. However, the company incurred another loss in 2020, which again turned positive in 2021. This pattern indicates cyclical fluctuations, possibly reflective of external market conditions or operational challenges.

Total Assets

Total assets show a consistent downward trend from 2017 through 2021, declining steadily each year. The reduction in assets suggests a contraction in the asset base, which could be due to asset sales, depreciation, impairment, or limited reinvestment over the period analyzed.

Reported Return on Assets (ROA)

ROA figures follow a pattern similar to net income, with negative returns in 2017 and 2020, contrasting with positive returns in 2018, 2019, and 2021. The highest ROA is observed in 2018 and 2021, indicating periods of improved asset efficiency. The negative ROA years imply inefficiencies or losses impacting overall asset utilization.

Adjusted Net Income (Loss)

The adjusted net income shows a pattern closely aligned with the reported net income, with continual fluctuations and similar periods of profitability and losses. This suggests that adjustments made do not significantly alter the overall income trend but provide an alternative view of profitability.

Adjusted Total Assets

Adjusted total assets mirror the downward trend seen in reported total assets, with a consistent decline each year. The slight differences between reported and adjusted asset values are minimal, indicating limited adjustments to asset valuation.

Adjusted Return on Assets (ROA)

The adjusted ROA exhibits a trend consistent with reported ROA, showing positive returns in 2018, 2019, and 2021, and negative returns in 2017 and 2020. The correlation suggests that adjustments offer a comparable perspective on asset efficiency and profitability.

In summary, the company experienced notable fluctuations in profitability with intermittent losses and gains, alongside a steady decrease in asset base. The return on assets metrics reflect these performance swings, recovering in certain years but showing inefficiencies in others. Adjusted figures corroborate these findings, indicating that the core financial trends persist regardless of adjustments.