Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
Marathon Oil Corp., profitability 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).
The financial performance shows notable fluctuations over the observed periods, reflecting a cycle of growth, decline, and recovery across key profitability ratios.
- Operating Profit Margin
- The operating profit margin exhibited a strong upward trend from the beginning through the end of 2018, peaking at 28.24% in December 2018. This was followed by a gradual decline in 2019, dropping to 12.56% by the end of that year. The margin sharply deteriorated in 2020, reaching a negative low of -38.10% in December. The subsequent year showed signs of recovery, initiating in the first quarter of 2021 with a negative margin but improving steadily throughout the year. By mid-2022, the operating profit margin rebounded significantly to 44.87%, marking the highest level in the observed periods.
- Net Profit Margin
- The net profit margin mirrored the operating margin’s trajectory but with larger volatility in negative territory. Starting with negative values early in 2018, it improved to a positive 18.57% by the end of 2018. The margin remained positive but showed some decline in 2019, ending at 9.48% in Q4. However, there was a steep decline in 2020, with margins turning markedly negative and bottoming at -46.85% by year-end. In 2021, the margin demonstrated a gradual recovery from -40.25% to near breakeven levels. The upward momentum accelerated into 2022, reaching 43.71% by the second quarter, indicating a strong return to profitability.
- Return on Equity (ROE)
- ROE tracking reveals a positive trend throughout 2018, peaking at 9.04% in December. The metric softened in 2019, decreasing to 3.95% by year-end, followed by a notable decline into negative territory during 2020, hitting -13.74% in the last quarter. In 2021, ROE struggled to recover, fluctuating near zero and negative values during the first three quarters, before rebounding in the final quarter. A clear recovery trend took hold in early 2022 with strong positive gains, climaxing at 26.91% in June.
- Return on Assets (ROA)
- ROA followed a pattern consistent with other profitability measures, showing improvement over 2018 to peak at 5.14% in Q4 2018. A decline ensued in 2019 to 2.37% by year-end, followed by a plunge into negative returns during 2020, reaching -8.08% in December. The ratio remained suppressed through most of 2021, slightly improving but still negative or close to zero in early quarters, then gaining positive traction toward year-end. The recovery accelerated significantly in 2022 with ROA climbing sharply to 16.97% by mid-year.
Overall, the data reflects a period of robust profitability in 2018, a weakening phase through 2019 and an acute downturn throughout 2020. This downturn coincided with negative margins and returns, suggesting challenging conditions during that year. A gradual but clear recovery is evident beginning in late 2020 and accelerating through 2021 and into 2022, culminating in strong profitability and efficiency ratios by mid-2022. This pattern suggests resilience and effective adaptation to adverse conditions followed by a strong operational rebound.
Return on Sales
Return on Investment
Operating Profit Margin
Marathon Oil Corp., operating profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Income (loss) from operations | ||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||
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).
1 Q2 2022 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ2 2022
+ Income (loss) from operationsQ1 2022
+ Income (loss) from operationsQ4 2021
+ Income (loss) from operationsQ3 2021)
÷ (RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021
+ RevenuesQ3 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data exhibits notable fluctuations in operational performance over the reported periods. The income (loss) from operations demonstrates considerable volatility, with positive values in most quarters until early 2020, followed by significant losses throughout 2020, and then a strong recovery trend starting in 2021 and continuing into mid-2022.
- Income (loss) from operations
- The operational income shows an initial period of steady but moderate earnings from 2018 through 2019, ranging approximately between 70 and 570 million US dollars. In 2020, a sharp decline is evident, with losses peaking at over 700 million US dollars in the second quarter, and sustained negative operating income through the year. This negative trend reverses in 2021, as income returns to positive territory, increasing sharply into 2022, reaching highs over 1,200 million US dollars, indicating a robust recovery and enhanced operational profitability.
- Revenues
- Revenue trends parallel those of operating income, with values declining from around 1,500 million US dollars per quarter in 2018 to a low of approximately 490 million in the second quarter of 2020. Following this trough, revenues progressively increase, surpassing pre-2020 levels by late 2021 and continuing to grow through mid-2022, peaking close to 2,170 million US dollars. This rebound implies a regained market demand or improved sales execution after a period of significant downturn.
- Operating profit margin
- The operating profit margin exhibits wide variation, initially ranging from about 7.7% to 28.2% in 2018, reflecting relatively healthy profitability. Margins decline somewhat in 2019 but remain positive. In 2020, margins dip into negative figures sharply, reaching nearly -38%, consistent with the recorded operational losses. Margins begin to improve in 2021, moving back into positive territory and strengthening considerably by 2022, reaching approximately 45%, signifying improved cost management or pricing power alongside revenue growth.
Overall, the data illustrates a cycle of disruption beginning in early 2020, likely attributable to external economic or industry-specific factors, followed by a robust operational and financial recovery by mid-2022. This recovery is characterized by increasing revenue, restoration and growth of operating income, and significant margin improvement, suggesting enhanced efficiency, improved product pricing, or favorable market conditions during the latter periods.
Net Profit Margin
Marathon Oil Corp., net profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||
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).
1 Q2 2022 Calculation
Net profit margin = 100
× (Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021
+ Net income (loss)Q3 2021)
÷ (RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021
+ RevenuesQ3 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net income (loss)
- The net income figures demonstrate significant volatility over the observed periods. Initial values in 2018 show moderate positive earnings with a peak near the end of the year. The year 2019 reflects a downward trend, culminating in a slight net loss by December. The most pronounced decline occurs in 2020, with substantial losses reaching their lowest in the middle of the year and persisting through to the end of 2020. Beginning in 2021, net income recovers, showing positive values that increase sharply into 2022, reaching the highest levels in the series by the second quarter of 2022.
- Revenues
- Revenue trends over the periods reveal a generally cyclical pattern with fluctuations. Revenues start relatively high in 2018 but decline through 2019 with a marked drop by the first half of 2020, coinciding with the global market disruptions observed in that period. A recovery trend is evident starting in late 2020 and steadily progresses through 2021 and into 2022, with revenues surpassing previous highs and demonstrating strong growth momentum by mid-2022.
- Net profit margin
- The net profit margin exhibits substantial fluctuation, correlating with the trends in net income and revenues. Margins were positive and relatively strong during 2018 and early 2019, peaking in the second half of 2018. However, margins declined sharply starting in late 2019, turning negative through much of 2020, which corresponds with the significant losses during this period. By early 2021, margins remain negative but begin to improve, ultimately transitioning back to positive territory in 2022. The margin gains accelerate in 2022, reaching levels significantly higher than those recorded in previous years.
- Overall analysis
- The financial data reflects a period of instability particularly pronounced around 2020, likely influenced by adverse market conditions. Both revenues and profitability experienced substantial contraction during this period, with the company recording its largest losses and steepest margin declines. Following this downturn, there is a clear recovery trajectory starting in 2021, which strengthens considerably in 2022. This recovery is highlighted by robust revenue growth coupled with improved net income and expanding profit margins, indicating enhanced operational efficiency and market conditions.
Return on Equity (ROE)
Marathon Oil Corp., ROE 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||
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).
1 Q2 2022 Calculation
ROE = 100
× (Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021
+ Net income (loss)Q3 2021)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance over the observed quarters indicates notable fluctuations in profitability and equity returns. Net income demonstrated variability with periods of profitability interrupted by significant losses, particularly during the middle quarters of 2020. Following a substantial decline in 2020, a recovery trend is evident in 2021 and 2022, with net income showing a marked increase, peaking in the first two quarters of 2022.
- Net Income (Loss)
- The net income figures show a cyclical pattern. Initially, profitability was strong with several quarters yielding positive results. However, the onset of 2020 marked a period of negative earnings, reaching a trough with considerable losses. From 2021 onward, the company exhibited a recovery trajectory, culminating in significantly higher net income levels in early 2022.
- Stockholders’ Equity
- Stockholders’ equity remained relatively stable throughout the periods, with minor fluctuations. The equity slightly declined during 2020, coinciding with the period of negative earnings, but showed gradual improvement and stabilization in subsequent quarters into 2022. This suggests a degree of resilience in the company’s capitalization despite earnings volatility.
- Return on Equity (ROE)
- The ROE metric aligns closely with net income trends. It experienced positive values initially, peaking moderately in late 2018 and mid-2019. A sharp decline into negative territory occurred during 2020, reflecting inefficient use of equity amidst losses. Starting in late 2021, ROE rebounded significantly, reaching its highest levels in early 2022, indicative of enhanced profitability relative to equity.
Overall, the data reveals a period of financial stress around 2020, followed by a pronounced recovery in profitability and equity returns. The stability in stockholders’ equity amidst earnings volatility points to effective capital management. The recent improvement in both net income and ROE suggests strengthened operational performance and return generation capacity moving forward.
Return on Assets (ROA)
Marathon Oil Corp., ROA 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||
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).
1 Q2 2022 Calculation
ROA = 100
× (Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021
+ Net income (loss)Q3 2021)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibited considerable volatility over the analyzed periods. Initially, net income peaked at 390 million USD at the end of 2018, followed by a general decline through 2019 and into early 2020, with losses becoming evident starting in the first quarter of 2020. The worst losses occurred in the second quarter of 2020 at -750 million USD, likely reflecting significant challenges during that period. From late 2020 onwards, there was a recovery trend, with net income returning to positive territory and ultimately growing substantially, reaching 1,304 million USD by the first quarter of 2022. This indicates a strong rebound and improved profitability over the recent quarters.
- Total Assets
- Total assets showed a gradual decreasing trend from 21,634 million USD at the end of Q1 2018 to a low of approximately 16,994 million USD by the end of 2021. However, this trend reversed slightly in the first half of 2022, with total assets increasing to around 18,286 million USD. The general decline over the period suggests possible asset divestitures or depreciation exceeding new asset acquisition, while the recent uptick may imply reinvestment or asset growth in response to improving business conditions.
- Return on Assets (ROA)
- The return on assets displayed notable fluctuations throughout the timeline. ROA was positive and relatively strong during 2018 and early 2019, peaking at 5.14% in December 2018. Thereafter, there was a sharp decline beginning in late 2019, with the ratio turning negative from Q2 2020 and reaching its lowest point at -8.08% at the end of 2020. This negative performance aligns with the significant net income losses during that period. Starting in 2021, ROA improved steadily and turned positive again, accelerating markedly to 16.97% by mid-2022, indicating enhanced profitability relative to asset base and efficient asset utilization in the recent periods.
- Summary of Trends
- The data reveals a period of financial stress beginning around early 2020, likely influenced by external economic shocks, resulting in net losses and reduced returns on assets despite a declining total asset base. Subsequent recovery phases demonstrated increased profitability and improved asset efficiency, with net income surpassing previous highs and ROA peaking significantly by mid-2022. The stabilization and moderate growth in total assets during 2022 further support a strengthening financial position. Overall, the company exhibited resilience and an ability to rebound from adverse conditions, with positive momentum emerging in recent quarters.