Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Marathon Oil Corp., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Marathon Oil Corp. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Marathon Oil Corp. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Marathon Oil Corp. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Marathon Oil Corp. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Marathon Oil Corp. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Marathon Oil Corp. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Marathon Oil Corp. number of days of payables outstanding increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Marathon Oil Corp. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
Marathon Oil Corp., inventory turnover 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) | ||||||
| Revenues from contracts with customers | 5,601) | 3,097) | 5,063) | 5,902) | 4,373) | |
| Inventories | 77) | 76) | 72) | 96) | 126) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 72.74 | 40.75 | 70.32 | 61.48 | 34.71 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Chevron Corp. | 24.68 | 16.64 | 23.92 | — | — | |
| ConocoPhillips | 37.94 | 18.75 | 31.74 | — | — | |
| Exxon Mobil Corp. | 14.73 | 9.47 | 13.79 | — | — | |
| Marathon Petroleum Corp. | 13.66 | 8.22 | 10.76 | — | — | |
| Occidental Petroleum Corp. | 14.06 | 9.38 | 14.09 | — | — | |
| Valero Energy Corp. | 17.69 | 10.87 | 14.76 | — | — | |
| Inventory Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 17.07 | 10.64 | 15.01 | — | — | |
| Inventory Turnover, Industry | ||||||
| Energy | 16.27 | 10.31 | 14.32 | — | — | |
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
Inventory turnover = Revenues from contracts with customers ÷ Inventories
= 5,601 ÷ 77 = 72.74
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Marathon Oil Corp. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Receivables Turnover
Marathon Oil Corp., receivables turnover 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) | ||||||
| Revenues | 5,601) | 3,097) | 5,063) | 5,902) | 4,373) | |
| Receivables, less reserve | 1,142) | 747) | 1,122) | 1,079) | 1,082) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 4.90 | 4.15 | 4.51 | 5.47 | 4.04 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Chevron Corp. | 8.45 | 8.24 | 10.50 | — | — | |
| ConocoPhillips | 7.00 | 7.13 | 9.97 | — | — | |
| Exxon Mobil Corp. | 10.29 | 10.93 | 12.11 | — | — | |
| Marathon Petroleum Corp. | 10.87 | 12.11 | 15.75 | — | — | |
| Occidental Petroleum Corp. | 6.17 | 8.42 | 3.20 | — | — | |
| Valero Energy Corp. | 11.43 | 13.50 | 13.44 | — | — | |
| Receivables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.58 | 10.30 | 11.35 | — | — | |
| Receivables Turnover, Industry | ||||||
| Energy | 9.24 | 9.67 | 10.53 | — | — | |
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
Receivables turnover = Revenues ÷ Receivables, less reserve
= 5,601 ÷ 1,142 = 4.90
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Marathon Oil Corp. receivables turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Payables Turnover
Marathon Oil Corp., payables turnover 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) | ||||||
| Revenues from contracts with customers | 5,601) | 3,097) | 5,063) | 5,902) | 4,373) | |
| Accounts payable | 1,110) | 837) | 1,307) | 1,320) | 1,395) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.05 | 3.70 | 3.87 | 4.47 | 3.13 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Chevron Corp. | 9.46 | 8.63 | 9.92 | — | — | |
| ConocoPhillips | 9.16 | 7.04 | 10.25 | — | — | |
| Exxon Mobil Corp. | 10.39 | 10.20 | 10.35 | — | — | |
| Marathon Petroleum Corp. | 8.03 | 8.42 | 9.48 | — | — | |
| Occidental Petroleum Corp. | 6.66 | 5.96 | 2.91 | — | — | |
| Valero Energy Corp. | 8.87 | 10.79 | 10.15 | — | — | |
| Payables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.27 | 9.19 | 9.35 | — | — | |
| Payables Turnover, Industry | ||||||
| Energy | 9.15 | 9.07 | 9.14 | — | — | |
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
Payables turnover = Revenues from contracts with customers ÷ Accounts payable
= 5,601 ÷ 1,110 = 5.05
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Marathon Oil Corp. payables turnover ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Working Capital Turnover
Marathon Oil Corp., working capital turnover 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 assets | 1,821) | 1,612) | 2,135) | 2,921) | 2,566) | |
| Less: Current liabilities | 1,637) | 1,213) | 1,745) | 1,832) | 1,968) | |
| Working capital | 184) | 399) | 390) | 1,089) | 598) | |
| Revenues | 5,601) | 3,097) | 5,063) | 5,902) | 4,373) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 30.44 | 7.76 | 12.98 | 5.42 | 7.31 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Chevron Corp. | 22.40 | 24.25 | 77.75 | — | — | |
| ConocoPhillips | 11.37 | 2.80 | 3.30 | — | — | |
| Exxon Mobil Corp. | 110.19 | — | — | — | — | |
| Marathon Petroleum Corp. | 9.52 | 5.53 | 30.81 | — | — | |
| Occidental Petroleum Corp. | 13.76 | 29.88 | 5.46 | — | — | |
| Valero Energy Corp. | 26.42 | 9.89 | 18.65 | — | — | |
| Working Capital Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 22.86 | 23.50 | 60.26 | — | — | |
| Working Capital Turnover, Industry | ||||||
| Energy | 22.01 | 21.93 | 51.98 | — | — | |
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
Working capital turnover = Revenues ÷ Working capital
= 5,601 ÷ 184 = 30.44
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Marathon Oil Corp. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Inventory Processing Period
Marathon Oil Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 72.74 | 40.75 | 70.32 | 61.48 | 34.71 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 5 | 9 | 5 | 6 | 11 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Chevron Corp. | 15 | 22 | 15 | — | — | |
| ConocoPhillips | 10 | 19 | 11 | — | — | |
| Exxon Mobil Corp. | 25 | 39 | 26 | — | — | |
| Marathon Petroleum Corp. | 27 | 44 | 34 | — | — | |
| Occidental Petroleum Corp. | 26 | 39 | 26 | — | — | |
| Valero Energy Corp. | 21 | 34 | 25 | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 21 | 34 | 24 | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Energy | 22 | 35 | 25 | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 72.74 = 5
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Marathon Oil Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 4.90 | 4.15 | 4.51 | 5.47 | 4.04 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 74 | 88 | 81 | 67 | 90 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Chevron Corp. | 43 | 44 | 35 | — | — | |
| ConocoPhillips | 52 | 51 | 37 | — | — | |
| Exxon Mobil Corp. | 35 | 33 | 30 | — | — | |
| Marathon Petroleum Corp. | 34 | 30 | 23 | — | — | |
| Occidental Petroleum Corp. | 59 | 43 | 114 | — | — | |
| Valero Energy Corp. | 32 | 27 | 27 | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 38 | 35 | 32 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Energy | 40 | 38 | 35 | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.90 = 74
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Marathon Oil Corp. number of days of receivables outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Operating Cycle
Marathon Oil Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 5 | 9 | 5 | 6 | 11 | |
| Average receivable collection period | 74 | 88 | 81 | 67 | 90 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 79 | 97 | 86 | 73 | 101 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Chevron Corp. | 58 | 66 | 50 | — | — | |
| ConocoPhillips | 62 | 70 | 48 | — | — | |
| Exxon Mobil Corp. | 60 | 72 | 56 | — | — | |
| Marathon Petroleum Corp. | 61 | 74 | 57 | — | — | |
| Occidental Petroleum Corp. | 85 | 82 | 140 | — | — | |
| Valero Energy Corp. | 53 | 61 | 52 | — | — | |
| Operating Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 59 | 69 | 56 | — | — | |
| Operating Cycle, Industry | ||||||
| Energy | 62 | 73 | 60 | — | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 5 + 74 = 79
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Marathon Oil Corp. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Payables Payment Period
Marathon Oil Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.05 | 3.70 | 3.87 | 4.47 | 3.13 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 72 | 99 | 94 | 82 | 116 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Chevron Corp. | 39 | 42 | 37 | — | — | |
| ConocoPhillips | 40 | 52 | 36 | — | — | |
| Exxon Mobil Corp. | 35 | 36 | 35 | — | — | |
| Marathon Petroleum Corp. | 45 | 43 | 38 | — | — | |
| Occidental Petroleum Corp. | 55 | 61 | 126 | — | — | |
| Valero Energy Corp. | 41 | 34 | 36 | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 39 | 40 | 39 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Energy | 40 | 40 | 40 | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.05 = 72
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Marathon Oil Corp. number of days of payables outstanding increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Cash Conversion Cycle
Marathon Oil Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 5 | 9 | 5 | 6 | 11 | |
| Average receivable collection period | 74 | 88 | 81 | 67 | 90 | |
| Average payables payment period | 72 | 99 | 94 | 82 | 116 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 7 | -2 | -8 | -9 | -15 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Chevron Corp. | 19 | 24 | 13 | — | — | |
| ConocoPhillips | 22 | 18 | 12 | — | — | |
| Exxon Mobil Corp. | 25 | 36 | 21 | — | — | |
| Marathon Petroleum Corp. | 16 | 31 | 19 | — | — | |
| Occidental Petroleum Corp. | 30 | 21 | 14 | — | — | |
| Valero Energy Corp. | 12 | 27 | 16 | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 20 | 29 | 17 | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Energy | 22 | 33 | 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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 5 + 74 – 72 = 7
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Marathon Oil Corp. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |