Stock Analysis on Net
Stock Analysis on Net

Marathon Oil Corp. (NYSE:MRO)

This company has been moved to the archive! The financial data has not been updated since August 4, 2022.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Marathon Oil Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Jun 30, 2022 26.91% = 16.97% × 1.59
Mar 31, 2022 18.94% = 11.97% × 1.58
Dec 31, 2021 8.85% = 5.57% × 1.59
Sep 30, 2021 -0.38% = -0.24% × 1.59
Jun 30, 2021 -5.10% = -3.04% × 1.67
Mar 31, 2021 -12.26% = -7.17% × 1.71
Dec 31, 2020 -13.74% = -8.08% × 1.70
Sep 30, 2020 -10.40% = -6.07% × 1.71
Jun 30, 2020 -5.83% = -3.51% × 1.66
Mar 31, 2020 2.17% = 1.32% × 1.65
Dec 31, 2019 3.95% = 2.37% × 1.67
Sep 30, 2019 7.25% = 4.37% × 1.66
Jun 30, 2019 8.09% = 4.60% × 1.76
Mar 31, 2019 7.49% = 4.27% × 1.75
Dec 31, 2018 9.04% = 5.14% × 1.76
Sep 30, 2018 5.63% = 3.11% × 1.81
Jun 30, 2018 -1.44% = -0.80% × 1.80
Mar 31, 2018 -3.41% = -1.90% × 1.80
Dec 31, 2017 -48.88% = -26.00% × 1.88
Sep 30, 2017 — = — × 1.95
Jun 30, 2017 — = — × 1.95
Mar 31, 2017 — = — × 1.95

Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2022 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Marathon Oil Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 30, 2022 26.91% = 43.71% × 0.39 × 1.59
Mar 31, 2022 18.94% = 34.81% × 0.34 × 1.58
Dec 31, 2021 8.85% = 16.89% × 0.33 × 1.59
Sep 30, 2021 -0.38% = -0.87% × 0.27 × 1.59
Jun 30, 2021 -5.10% = -13.50% × 0.23 × 1.67
Mar 31, 2021 -12.26% = -40.25% × 0.18 × 1.71
Dec 31, 2020 -13.74% = -46.85% × 0.17 × 1.70
Sep 30, 2020 -10.40% = -32.30% × 0.19 × 1.71
Jun 30, 2020 -5.83% = -16.29% × 0.22 × 1.66
Mar 31, 2020 2.17% = 5.32% × 0.25 × 1.65
Dec 31, 2019 3.95% = 9.48% × 0.25 × 1.67
Sep 30, 2019 7.25% = 17.08% × 0.26 × 1.66
Jun 30, 2019 8.09% = 17.80% × 0.26 × 1.76
Mar 31, 2019 7.49% = 16.42% × 0.26 × 1.75
Dec 31, 2018 9.04% = 18.57% × 0.28 × 1.76
Sep 30, 2018 5.63% = 11.79% × 0.26 × 1.81
Jun 30, 2018 -1.44% = -3.26% × 0.25 × 1.80
Mar 31, 2018 -3.41% = -8.33% × 0.23 × 1.80
Dec 31, 2017 -48.88% = -130.87% × 0.20 × 1.88
Sep 30, 2017 — = — × — × 1.95
Jun 30, 2017 — = — × — × 1.95
Mar 31, 2017 — = — × — × 1.95

Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2022 is the increase in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Marathon Oil Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jun 30, 2022 16.97% = 43.71% × 0.39
Mar 31, 2022 11.97% = 34.81% × 0.34
Dec 31, 2021 5.57% = 16.89% × 0.33
Sep 30, 2021 -0.24% = -0.87% × 0.27
Jun 30, 2021 -3.04% = -13.50% × 0.23
Mar 31, 2021 -7.17% = -40.25% × 0.18
Dec 31, 2020 -8.08% = -46.85% × 0.17
Sep 30, 2020 -6.07% = -32.30% × 0.19
Jun 30, 2020 -3.51% = -16.29% × 0.22
Mar 31, 2020 1.32% = 5.32% × 0.25
Dec 31, 2019 2.37% = 9.48% × 0.25
Sep 30, 2019 4.37% = 17.08% × 0.26
Jun 30, 2019 4.60% = 17.80% × 0.26
Mar 31, 2019 4.27% = 16.42% × 0.26
Dec 31, 2018 5.14% = 18.57% × 0.28
Sep 30, 2018 3.11% = 11.79% × 0.26
Jun 30, 2018 -0.80% = -3.26% × 0.25
Mar 31, 2018 -1.90% = -8.33% × 0.23
Dec 31, 2017 -26.00% = -130.87% × 0.20
Sep 30, 2017 — = — × —
Jun 30, 2017 — = — × —
Mar 31, 2017 — = — × —

Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2022 is the increase in profitability measured by net profit margin ratio.