Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Marathon Oil Corp., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Marathon Oil Corp. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Marathon Oil Corp. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Marathon Oil Corp. debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Marathon Oil Corp. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Marathon Oil Corp. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Marathon Oil Corp. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Marathon Oil Corp. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Marathon Oil Corp. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Marathon Oil Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Equity
Marathon Oil Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term finance lease liability | 6) | —) | —) | —) | —) | |
| Long-term debt due within one year | 36) | —) | —) | —) | —) | |
| Long-term debt, excluding due within one year | 3,978) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Long-term finance lease liability, excluding current portion | 24) | —) | —) | —) | —) | |
| Total debt | 4,044) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Stockholders’ equity | 10,686) | 10,561) | 12,153) | 12,128) | 11,708) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.38 | 0.51 | 0.45 | 0.45 | 0.47 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | 0.23 | 0.34 | 0.19 | — | — | |
| ConocoPhillips | 0.44 | 0.51 | 0.43 | — | — | |
| Exxon Mobil Corp. | 0.28 | 0.43 | 0.24 | — | — | |
| Marathon Petroleum Corp. | 0.97 | 1.42 | 0.86 | — | — | |
| Occidental Petroleum Corp. | 1.46 | 1.95 | 1.13 | — | — | |
| Valero Energy Corp. | 0.75 | 0.78 | 0.44 | — | — | |
| Debt to Equity, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.40 | 0.55 | 0.36 | — | — | |
| Debt to Equity, Industry | ||||||
| Energy | 0.42 | 0.58 | 0.37 | — | — | |
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).
1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 4,044 ÷ 10,686 = 0.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Marathon Oil Corp. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Equity (including Operating Lease Liability)
Marathon Oil Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term finance lease liability | 6) | —) | —) | —) | —) | |
| Long-term debt due within one year | 36) | —) | —) | —) | —) | |
| Long-term debt, excluding due within one year | 3,978) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Long-term finance lease liability, excluding current portion | 24) | —) | —) | —) | —) | |
| Total debt | 4,044) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Current portion of long-term operating lease liability (located in Other current liabilities) | 40) | 70) | 101) | —) | —) | |
| Long-term operating lease liability, excluding current portion (located in Deferred credits and other liabilities) | 23) | 67) | 107) | —) | —) | |
| Total debt (including operating lease liability) | 4,107) | 5,541) | 5,709) | 5,499) | 5,494) | |
| Stockholders’ equity | 10,686) | 10,561) | 12,153) | 12,128) | 11,708) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.38 | 0.52 | 0.47 | 0.45 | 0.47 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.25 | 0.37 | 0.21 | — | — | |
| ConocoPhillips | 0.45 | 0.54 | 0.45 | — | — | |
| Exxon Mobil Corp. | 0.31 | 0.46 | 0.27 | — | — | |
| Marathon Petroleum Corp. | 1.03 | 1.49 | 0.93 | — | — | |
| Occidental Petroleum Corp. | 1.49 | 2.01 | 1.17 | — | — | |
| Valero Energy Corp. | 0.82 | 0.84 | 0.50 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.43 | 0.59 | 0.39 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Energy | 0.45 | 0.62 | 0.41 | — | — | |
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).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 4,107 ÷ 10,686 = 0.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Marathon Oil Corp. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Capital
Marathon Oil Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term finance lease liability | 6) | —) | —) | —) | —) | |
| Long-term debt due within one year | 36) | —) | —) | —) | —) | |
| Long-term debt, excluding due within one year | 3,978) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Long-term finance lease liability, excluding current portion | 24) | —) | —) | —) | —) | |
| Total debt | 4,044) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Stockholders’ equity | 10,686) | 10,561) | 12,153) | 12,128) | 11,708) | |
| Total capital | 14,730) | 15,965) | 17,654) | 17,627) | 17,202) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.27 | 0.34 | 0.31 | 0.31 | 0.32 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | 0.18 | 0.25 | 0.16 | — | — | |
| ConocoPhillips | 0.31 | 0.34 | 0.30 | — | — | |
| Exxon Mobil Corp. | 0.22 | 0.30 | 0.20 | — | — | |
| Marathon Petroleum Corp. | 0.49 | 0.59 | 0.46 | — | — | |
| Occidental Petroleum Corp. | 0.59 | 0.66 | 0.53 | — | — | |
| Valero Energy Corp. | 0.43 | 0.44 | 0.31 | — | — | |
| Debt to Capital, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.29 | 0.36 | 0.26 | — | — | |
| Debt to Capital, Industry | ||||||
| Energy | 0.30 | 0.37 | 0.27 | — | — | |
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).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,044 ÷ 14,730 = 0.27
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Marathon Oil Corp. debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Capital (including Operating Lease Liability)
Marathon Oil Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term finance lease liability | 6) | —) | —) | —) | —) | |
| Long-term debt due within one year | 36) | —) | —) | —) | —) | |
| Long-term debt, excluding due within one year | 3,978) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Long-term finance lease liability, excluding current portion | 24) | —) | —) | —) | —) | |
| Total debt | 4,044) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Current portion of long-term operating lease liability (located in Other current liabilities) | 40) | 70) | 101) | —) | —) | |
| Long-term operating lease liability, excluding current portion (located in Deferred credits and other liabilities) | 23) | 67) | 107) | —) | —) | |
| Total debt (including operating lease liability) | 4,107) | 5,541) | 5,709) | 5,499) | 5,494) | |
| Stockholders’ equity | 10,686) | 10,561) | 12,153) | 12,128) | 11,708) | |
| Total capital (including operating lease liability) | 14,793) | 16,102) | 17,862) | 17,627) | 17,202) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.28 | 0.34 | 0.32 | 0.31 | 0.32 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.20 | 0.27 | 0.18 | — | — | |
| ConocoPhillips | 0.31 | 0.35 | 0.31 | — | — | |
| Exxon Mobil Corp. | 0.24 | 0.32 | 0.22 | — | — | |
| Marathon Petroleum Corp. | 0.51 | 0.60 | 0.48 | — | — | |
| Occidental Petroleum Corp. | 0.60 | 0.67 | 0.54 | — | — | |
| Valero Energy Corp. | 0.45 | 0.46 | 0.33 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.30 | 0.37 | 0.28 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Energy | 0.31 | 0.38 | 0.29 | — | — | |
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).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 4,107 ÷ 14,793 = 0.28
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Marathon Oil Corp. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Assets
Marathon Oil Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term finance lease liability | 6) | —) | —) | —) | —) | |
| Long-term debt due within one year | 36) | —) | —) | —) | —) | |
| Long-term debt, excluding due within one year | 3,978) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Long-term finance lease liability, excluding current portion | 24) | —) | —) | —) | —) | |
| Total debt | 4,044) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Total assets | 16,994) | 17,956) | 20,245) | 21,321) | 22,012) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.24 | 0.30 | 0.27 | 0.26 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | 0.13 | 0.18 | 0.11 | — | — | |
| ConocoPhillips | 0.22 | 0.25 | 0.21 | — | — | |
| Exxon Mobil Corp. | 0.14 | 0.20 | 0.13 | — | — | |
| Marathon Petroleum Corp. | 0.30 | 0.37 | 0.29 | — | — | |
| Occidental Petroleum Corp. | 0.39 | 0.45 | 0.35 | — | — | |
| Valero Energy Corp. | 0.24 | 0.28 | 0.18 | — | — | |
| Debt to Assets, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.19 | 0.25 | 0.18 | — | — | |
| Debt to Assets, Industry | ||||||
| Energy | 0.20 | 0.25 | 0.18 | — | — | |
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).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,044 ÷ 16,994 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Marathon Oil Corp. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Assets (including Operating Lease Liability)
Marathon Oil Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term finance lease liability | 6) | —) | —) | —) | —) | |
| Long-term debt due within one year | 36) | —) | —) | —) | —) | |
| Long-term debt, excluding due within one year | 3,978) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Long-term finance lease liability, excluding current portion | 24) | —) | —) | —) | —) | |
| Total debt | 4,044) | 5,404) | 5,501) | 5,499) | 5,494) | |
| Current portion of long-term operating lease liability (located in Other current liabilities) | 40) | 70) | 101) | —) | —) | |
| Long-term operating lease liability, excluding current portion (located in Deferred credits and other liabilities) | 23) | 67) | 107) | —) | —) | |
| Total debt (including operating lease liability) | 4,107) | 5,541) | 5,709) | 5,499) | 5,494) | |
| Total assets | 16,994) | 17,956) | 20,245) | 21,321) | 22,012) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.24 | 0.31 | 0.28 | 0.26 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.15 | 0.20 | 0.13 | — | — | |
| ConocoPhillips | 0.23 | 0.26 | 0.22 | — | — | |
| Exxon Mobil Corp. | 0.16 | 0.22 | 0.15 | — | — | |
| Marathon Petroleum Corp. | 0.32 | 0.39 | 0.32 | — | — | |
| Occidental Petroleum Corp. | 0.40 | 0.47 | 0.37 | — | — | |
| Valero Energy Corp. | 0.26 | 0.31 | 0.20 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.20 | 0.26 | 0.19 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Energy | 0.21 | 0.27 | 0.20 | — | — | |
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).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 4,107 ÷ 16,994 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Marathon Oil Corp. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Financial Leverage
Marathon Oil Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 16,994) | 17,956) | 20,245) | 21,321) | 22,012) | |
| Stockholders’ equity | 10,686) | 10,561) | 12,153) | 12,128) | 11,708) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.59 | 1.70 | 1.67 | 1.76 | 1.88 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | 1.72 | 1.82 | 1.65 | — | — | |
| ConocoPhillips | 2.00 | 2.10 | 2.02 | — | — | |
| Exxon Mobil Corp. | 2.01 | 2.12 | 1.89 | — | — | |
| Marathon Petroleum Corp. | 3.26 | 3.84 | 2.93 | — | — | |
| Occidental Petroleum Corp. | 3.69 | 4.31 | 3.19 | — | — | |
| Valero Energy Corp. | 3.14 | 2.75 | 2.47 | — | — | |
| Financial Leverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 2.12 | 2.25 | 2.02 | — | — | |
| Financial Leverage, Industry | ||||||
| Energy | 2.15 | 2.29 | 2.04 | — | — | |
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).
1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 16,994 ÷ 10,686 = 1.59
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Marathon Oil Corp. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Interest Coverage
Marathon Oil Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 946) | (1,451) | 480) | 1,096) | (5,723) | |
| Less: Loss from discontinued operations | —) | —) | —) | —) | (4,893) | |
| Add: Income tax expense | 58) | (14) | (88) | 331) | 376) | |
| Add: Interest expense | 257) | 279) | 280) | 280) | 377) | |
| Earnings before interest and tax (EBIT) | 1,261) | (1,186) | 672) | 1,707) | (77) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.91 | -4.25 | 2.40 | 6.10 | -0.20 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | 31.39 | -9.69 | 7.94 | — | — | |
| ConocoPhillips | 15.38 | -2.90 | 13.24 | — | — | |
| Exxon Mobil Corp. | 33.98 | -23.94 | 25.16 | — | — | |
| Marathon Petroleum Corp. | 3.22 | -9.21 | 4.50 | — | — | |
| Occidental Petroleum Corp. | 3.30 | -10.03 | 1.17 | — | — | |
| Valero Energy Corp. | 3.56 | -2.57 | 8.68 | — | — | |
| Interest Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 13.22 | -10.84 | 9.35 | — | — | |
| Interest Coverage, Industry | ||||||
| Energy | 12.58 | -11.55 | 6.66 | — | — | |
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).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,261 ÷ 257 = 4.91
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Marathon Oil Corp. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Fixed Charge Coverage
Marathon Oil Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 946) | (1,451) | 480) | 1,096) | (5,723) | |
| Less: Loss from discontinued operations | —) | —) | —) | —) | (4,893) | |
| Add: Income tax expense | 58) | (14) | (88) | 331) | 376) | |
| Add: Interest expense | 257) | 279) | 280) | 280) | 377) | |
| Earnings before interest and tax (EBIT) | 1,261) | (1,186) | 672) | 1,707) | (77) | |
| Add: Operating lease costs | 218) | 268) | 512) | 99) | 87) | |
| Earnings before fixed charges and tax | 1,479) | (918) | 1,184) | 1,806) | 10) | |
| Interest expense | 257) | 279) | 280) | 280) | 377) | |
| Operating lease costs | 218) | 268) | 512) | 99) | 87) | |
| Fixed charges | 475) | 547) | 792) | 379) | 464) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 3.11 | -1.68 | 1.49 | 4.77 | 0.02 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Chevron Corp. | 8.43 | -1.29 | 2.62 | — | — | |
| ConocoPhillips | 11.94 | -1.79 | 9.51 | — | — | |
| Exxon Mobil Corp. | 9.13 | -5.68 | 5.66 | — | — | |
| Marathon Petroleum Corp. | 2.52 | -5.84 | 3.13 | — | — | |
| Occidental Petroleum Corp. | 1.78 | -4.00 | 0.91 | — | — | |
| Valero Energy Corp. | 2.57 | -1.02 | 4.90 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 6.12 | -3.78 | 4.01 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Energy | 5.71 | -3.89 | 2.96 | — | — | |
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).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,479 ÷ 475 = 3.11
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Marathon Oil Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |