Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
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).
Examining the financial leverage ratios over the periods reveals several notable trends. The debt to equity ratio started at 0.58 in the first quarter of 2017, gradually decreasing to around 0.45 throughout 2018 and 2019, indicating a reduction in reliance on equity financing relative to debt. There was a slight increase in this ratio during 2020, peaking at 0.54 in the third quarter, likely reflecting increased borrowing or adjustments in equity value during this period. From 2021 onward, the ratio exhibited a downward trend again, reaching 0.35 by mid-2022, the lowest observed level, suggesting a significant reduction in debt relative to equity.
Similarly, the debt to capital ratio showed a relatively stable pattern initially, holding steady around 0.31 during 2017 through 2019. A modest increase occurred during 2020, reaching 0.35 in the third quarter, aligning with the rise in debt to equity seen during the same period. Subsequent quarters demonstrated a decrease, descending to 0.26 by mid-2022. This decline indicates a reduced proportion of debt in total capital structure, contributing to a potentially more conservative financial posture.
The debt to assets ratio followed a comparable trajectory, beginning at 0.30 in early 2017 and dropping slightly to around 0.25 by the end of 2017 through 2019. During 2020, the ratio increased to a peak of 0.32 in the third quarter, echoing patterns in debt-related ratios overall. Afterwards, it decreased steadily to 0.22 by mid-2022, reflecting a diminished level of debt relative to the company's total assets.
The financial leverage ratio, representing the company's use of debt and equity financing, started at 1.95 in early 2017 and showed a gradual decline over time, reaching about 1.67 through 2019. There was a slight increase to approximately 1.71 in 2020, followed by a progressive decline to around 1.59 by mid-2022. This suggests a cautious approach to leverage with a moderate reduction in the company's overall financial risk exposure over the observed period.
Overall, the data indicates that the company maintained a relatively stable debt structure from 2017 through 2019, experienced a noticeable yet temporary increase in leverage during 2020, and then systematically reduced debt levels relative to equity, capital, and assets through 2021 and into 2022. This pattern may reflect responses to market conditions or strategic financial decisions aimed at strengthening the balance sheet and improving financial stability.
Debt Ratios
Debt to Equity
Marathon Oil Corp., debt to equity calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt due within one year | 273) | 106) | 36) | 36) | 33) | 500) | —) | 500) | —) | —) | —) | 600) | 600) | —) | —) | —) | —) | —) | —) | —) | 548) | 1,541) | |||||||
| Long-term debt, excluding due within one year | 3,709) | 3,908) | 3,978) | 3,977) | 4,875) | 4,905) | 5,404) | 5,405) | 5,503) | 5,502) | 5,501) | 4,903) | 4,902) | 5,501) | 5,499) | 5,498) | 5,497) | 5,495) | 5,494) | 6,488) | 6,715) | 5,723) | |||||||
| Total debt | 3,982) | 4,014) | 4,014) | 4,013) | 4,908) | 5,405) | 5,404) | 5,905) | 5,503) | 5,502) | 5,501) | 5,503) | 5,502) | 5,501) | 5,499) | 5,498) | 5,497) | 5,495) | 5,494) | 6,488) | 7,263) | 7,264) | |||||||
| Stockholders’ equity | 11,532) | 11,366) | 10,686) | 10,796) | 10,634) | 10,671) | 10,561) | 10,892) | 11,175) | 11,958) | 12,153) | 12,271) | 12,101) | 12,208) | 12,128) | 12,044) | 12,132) | 12,034) | 11,708) | 11,775) | 12,405) | 12,584) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.35 | 0.35 | 0.38 | 0.37 | 0.46 | 0.51 | 0.51 | 0.54 | 0.49 | 0.46 | 0.45 | 0.45 | 0.45 | 0.45 | 0.45 | 0.46 | 0.45 | 0.46 | 0.47 | 0.55 | 0.59 | 0.58 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 0.17 | 0.20 | 0.23 | 0.27 | 0.32 | 0.34 | 0.34 | 0.26 | 0.25 | 0.22 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 0.34 | 0.38 | 0.44 | 0.45 | 0.45 | 0.46 | 0.51 | 0.50 | 0.48 | 0.48 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 0.26 | 0.28 | 0.28 | 0.35 | 0.38 | 0.40 | 0.43 | 0.39 | 0.39 | 0.33 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 0.80 | 1.06 | 1.46 | 1.68 | 1.97 | 1.97 | 1.95 | 1.94 | 1.65 | 1.23 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
1 Q2 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 3,982 ÷ 11,532 = 0.35
2 Click competitor name to see calculations.
- Total Debt
- The total debt level demonstrates a clear declining trend from March 2017 through June 2022. Initially, the debt stood at 7,264 million USD and remained relatively stable until September 2017. Thereafter, a consistent reduction is observed, reaching a low point of 3,982 million USD by June 2022. Noteworthy, there was a brief increase in total debt during the fourth quarter of 2020, reaching 5,905 million USD, before the declining trend resumed and accelerated.
- Stockholders’ Equity
- Stockholders' equity fluctuated moderately over the period with a slight downward tendency overall. Starting from 12,584 million USD in March 2017, it experienced a gradual decrease with some recoveries, hitting its lowest point at 10,561 million USD by December 2020. Afterward, a moderate increase ensued, culminating in 11,532 million USD by June 2022. The equity levels suggest modest value erosion over this timeframe with some signs of stabilization toward the end.
- Debt to Equity Ratio
- The debt to equity ratio shows a general decreasing pattern, indicating improved leverage conditions. Beginning at 0.58 in March 2017, it declined steadily, reaching a low of 0.35 in both March and June 2022. A transient rise was noticed around September 2020 (0.54), correlating with the temporary increase in total debt during that period. The overall trend reflects a reduction in the relative debt burden compared to equity, suggesting strengthened financial structure over the observed period.
Debt to Capital
Marathon Oil Corp., debt to capital calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt due within one year | 273) | 106) | 36) | 36) | 33) | 500) | —) | 500) | —) | —) | —) | 600) | 600) | —) | —) | —) | —) | —) | —) | —) | 548) | 1,541) | |||||||
| Long-term debt, excluding due within one year | 3,709) | 3,908) | 3,978) | 3,977) | 4,875) | 4,905) | 5,404) | 5,405) | 5,503) | 5,502) | 5,501) | 4,903) | 4,902) | 5,501) | 5,499) | 5,498) | 5,497) | 5,495) | 5,494) | 6,488) | 6,715) | 5,723) | |||||||
| Total debt | 3,982) | 4,014) | 4,014) | 4,013) | 4,908) | 5,405) | 5,404) | 5,905) | 5,503) | 5,502) | 5,501) | 5,503) | 5,502) | 5,501) | 5,499) | 5,498) | 5,497) | 5,495) | 5,494) | 6,488) | 7,263) | 7,264) | |||||||
| Stockholders’ equity | 11,532) | 11,366) | 10,686) | 10,796) | 10,634) | 10,671) | 10,561) | 10,892) | 11,175) | 11,958) | 12,153) | 12,271) | 12,101) | 12,208) | 12,128) | 12,044) | 12,132) | 12,034) | 11,708) | 11,775) | 12,405) | 12,584) | |||||||
| Total capital | 15,514) | 15,380) | 14,700) | 14,809) | 15,542) | 16,076) | 15,965) | 16,797) | 16,678) | 17,460) | 17,654) | 17,774) | 17,603) | 17,709) | 17,627) | 17,542) | 17,629) | 17,529) | 17,202) | 18,263) | 19,668) | 19,848) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.26 | 0.26 | 0.27 | 0.27 | 0.32 | 0.34 | 0.34 | 0.35 | 0.33 | 0.32 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.32 | 0.36 | 0.37 | 0.37 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 0.15 | 0.17 | 0.18 | 0.22 | 0.24 | 0.26 | 0.25 | 0.21 | 0.20 | 0.18 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 0.25 | 0.28 | 0.31 | 0.31 | 0.31 | 0.32 | 0.34 | 0.33 | 0.32 | 0.32 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 0.21 | 0.22 | 0.22 | 0.26 | 0.28 | 0.29 | 0.30 | 0.28 | 0.28 | 0.25 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 0.44 | 0.51 | 0.59 | 0.63 | 0.66 | 0.66 | 0.66 | 0.66 | 0.62 | 0.55 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
1 Q2 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 3,982 ÷ 15,514 = 0.26
2 Click competitor name to see calculations.
The financial data reveals trends in the company's leverage and capital structure over the examined periods. Total debt initially decreased steadily from US$7.264 billion at the end of March 2017 to approximately US$5.494 billion by December 2017. Subsequently, total debt remained relatively stable around US$5.5 billion through the end of 2019, with a slight increase noted in the third quarter of 2020 to US$5.905 billion. From late 2020 onwards, total debt shows a noticeable declining trend, reaching approximately US$3.982 billion by mid-2022.
Total capital exhibits a descending trend over the full timeline. Starting from nearly US$19.848 billion in March 2017, it gradually decreased with minor fluctuations, hitting a low point near US$15.542 billion in December 2021. Interestingly, by mid-2022, there is a slight recovery in total capital, rising to around US$15.514 billion.
The debt to capital ratio reflects these movements, generally declining over the period. Beginning at 0.37 in early 2017, the ratio dips to about 0.31 through 2018 and most of 2019, indicating an improved balance between debt and total capital. A modest increase to 0.35 occurred in the third quarter of 2020, likely corresponding to the spike in total debt seen at this time. Afterward, the ratio steadily declines, reaching a low of 0.26 by mid-2022, signifying a reduced proportion of debt financing relative to the company's capital base.
- Total Debt
- Shows an initial decline followed by stabilization around US$5.5 billion till 2019, a brief uptick in 2020, and a marked reduction into 2022.
- Total Capital
- Exhibits a gradual downward trend with a modest rebound near the end of the analyzed period.
- Debt to Capital Ratio
- Decreases overall, reflecting improving leverage, except for a temporary increase in 2020 aligned with higher debt levels during that period.
Debt to Assets
Marathon Oil Corp., debt to assets calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt due within one year | 273) | 106) | 36) | 36) | 33) | 500) | —) | 500) | —) | —) | —) | 600) | 600) | —) | —) | —) | —) | —) | —) | —) | 548) | 1,541) | |||||||
| Long-term debt, excluding due within one year | 3,709) | 3,908) | 3,978) | 3,977) | 4,875) | 4,905) | 5,404) | 5,405) | 5,503) | 5,502) | 5,501) | 4,903) | 4,902) | 5,501) | 5,499) | 5,498) | 5,497) | 5,495) | 5,494) | 6,488) | 6,715) | 5,723) | |||||||
| Total debt | 3,982) | 4,014) | 4,014) | 4,013) | 4,908) | 5,405) | 5,404) | 5,905) | 5,503) | 5,502) | 5,501) | 5,503) | 5,502) | 5,501) | 5,499) | 5,498) | 5,497) | 5,495) | 5,494) | 6,488) | 7,263) | 7,264) | |||||||
| Total assets | 18,286) | 17,981) | 16,994) | 17,161) | 17,800) | 18,233) | 17,956) | 18,663) | 18,567) | 19,715) | 20,245) | 20,373) | 21,282) | 21,410) | 21,321) | 21,778) | 21,871) | 21,634) | 22,012) | 22,947) | 24,241) | 24,537) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.22 | 0.22 | 0.24 | 0.23 | 0.28 | 0.30 | 0.30 | 0.32 | 0.30 | 0.28 | 0.27 | 0.27 | 0.26 | 0.26 | 0.26 | 0.25 | 0.25 | 0.25 | 0.25 | 0.28 | 0.30 | 0.30 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 0.10 | 0.12 | 0.13 | 0.16 | 0.18 | 0.19 | 0.18 | 0.16 | 0.15 | 0.14 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 0.18 | 0.20 | 0.22 | 0.23 | 0.23 | 0.24 | 0.25 | 0.24 | 0.24 | 0.23 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 0.13 | 0.13 | 0.14 | 0.17 | 0.18 | 0.19 | 0.20 | 0.19 | 0.19 | 0.17 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 0.30 | 0.36 | 0.39 | 0.42 | 0.45 | 0.45 | 0.45 | 0.46 | 0.43 | 0.38 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
1 Q2 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 3,982 ÷ 18,286 = 0.22
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained relatively stable from March 2017 through June 2020, fluctuating slightly around the 5,400 to 7,200 million US$ range, with a gradual reduction observable after the peak in the early periods. Starting from September 2020, there was a noticeable decline in total debt, dropping from 5,905 million US$ to 3,982 million US$ by June 2022, indicating a concerted effort to reduce leverage over the last several quarters.
- Total Assets
- Total assets exhibited a downward trend throughout the entire period. Beginning at 24,537 million US$ in March 2017, assets consistently decreased, with minor fluctuations, reaching a low of 16,994 million US$ in March 2022 before slightly recovering to 18,286 million US$ by June 2022. This overall decline suggests a contraction or divestment of assets during the period under review.
- Debt to Assets Ratio
- The debt to assets ratio showcased a general pattern of initial improvement followed by some deterioration and then renewed improvement. Starting at 0.30 in March 2017, it gradually decreased to 0.25 by December 2017, reflecting better asset coverage or lower relative indebtedness. Thereafter, the ratio drifted upwards, peaking at 0.32 in September 2020, pointing to increased leverage or asset decline. Post-2020, the ratio declined steadily, reaching 0.22 by June 2022, corresponding with the periods of debt reduction and slight asset stabilization. This suggests an improvement in financial structure in the latter period.
Financial Leverage
Marathon Oil Corp., financial leverage calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | 18,286) | 17,981) | 16,994) | 17,161) | 17,800) | 18,233) | 17,956) | 18,663) | 18,567) | 19,715) | 20,245) | 20,373) | 21,282) | 21,410) | 21,321) | 21,778) | 21,871) | 21,634) | 22,012) | 22,947) | 24,241) | 24,537) | |||||||
| Stockholders’ equity | 11,532) | 11,366) | 10,686) | 10,796) | 10,634) | 10,671) | 10,561) | 10,892) | 11,175) | 11,958) | 12,153) | 12,271) | 12,101) | 12,208) | 12,128) | 12,044) | 12,132) | 12,034) | 11,708) | 11,775) | 12,405) | 12,584) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 1.59 | 1.58 | 1.59 | 1.59 | 1.67 | 1.71 | 1.70 | 1.71 | 1.66 | 1.65 | 1.67 | 1.66 | 1.76 | 1.75 | 1.76 | 1.81 | 1.80 | 1.80 | 1.88 | 1.95 | 1.95 | 1.95 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 1.68 | 1.70 | 1.72 | 1.77 | 1.82 | 1.83 | 1.82 | 1.69 | 1.67 | 1.64 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 1.87 | 1.90 | 2.00 | 1.98 | 1.93 | 1.94 | 2.10 | 2.05 | 2.00 | 2.08 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 2.07 | 2.10 | 2.01 | 2.10 | 2.13 | 2.13 | 2.12 | 2.02 | 2.01 | 1.95 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 2.67 | 2.98 | 3.69 | 4.01 | 4.38 | 4.34 | 4.31 | 4.25 | 3.83 | 3.25 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
1 Q2 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 18,286 ÷ 11,532 = 1.59
2 Click competitor name to see calculations.
The analysis of the financial data over the given periods reveals several notable trends and shifts in key financial metrics.
- Total Assets
- Total assets show a general declining trend over the periods analyzed. Starting at US$24,537 million in March 2017, total assets gradually decreased with minor fluctuations, reaching a low point of US$17,994 million by December 2020. Thereafter, a slight recovery is visible, with total assets increasing marginally to US$18,286 million by June 2022. This overall decrease suggests a contraction in the company's asset base during the period under review, likely reflecting asset disposals, depreciation, or other adjustments.
- Stockholders’ Equity
- Stockholders’ equity exhibited a downward trend across the timeline. Beginning at US$12,584 million in March 2017, equity decreased gradually, with some small fluctuations, reaching a minimum of US$10,561 million in December 2020. Post-2020, equity levels stabilized with a modest upward movement, arriving at US$11,532 million by June 2022. The decline in equity may indicate accumulated losses, dividend payments exceeding net income, or share repurchases during the period, impacting the company’s net worth.
- Financial Leverage
- Financial leverage, indicated by the ratio of total assets to stockholders’ equity, shows a slow but steady decrease from a ratio of 1.95 in early 2017 to approximately 1.59 by mid-2022. This declining leverage ratio suggests a relative reduction in the company's use of debt in relation to equity, indicating potentially lower financial risk or a strategic deleveraging approach over the years. Periodic small upticks in leverage are observed but overall the leverage remained below the starting point by the end of the period.
In summary, the company experienced a contraction in both total assets and stockholders’ equity over the analyzed timeframe, with a general shift towards lower financial leverage. This pattern may reflect strategic financial adjustments, potentially influenced by external market conditions or internal capital management decisions. The stabilization and small rebound in equity and assets towards the later periods indicates a possible recovery phase following the declines observed up to 2020.