Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Marathon Petroleum Corp., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	8,244)	8,244)	8,256)	8,256)	20,040)
Customer contracts and relationships	3,838)	3,624)	3,495)	3,359)	3,273)
Brand rights and tradenames	101)	100)	100)	100)	155)
Royalty agreements	173)	138)	135)	133)	133)
Other	41)	36)	36)	36)	147)
Definite lived intangible assets, gross	4,153)	3,898)	3,766)	3,628)	3,708)
Accumulated amortization	(2,388)	(2,022)	(1,631)	(1,268)	(780)
Definite lived intangible assets, net	1,765)	1,876)	2,135)	2,360)	2,928)
Emission allowance credits	71)	71)	71)	71)	94)
Indefinite lived intangible assets	71)	71)	71)	71)	94)
Intangible assets	1,836)	1,947)	2,206)	2,431)	3,022)
Goodwill and intangibles	10,080)	10,191)	10,462)	10,687)	23,062)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Marathon Petroleum Corp. intangible assets decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangibles	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Marathon Petroleum Corp. goodwill and intangibles decreased from 2021 to 2022 and from 2022 to 2023.

Marathon Petroleum Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	85,987)	89,904)	85,373)	85,158)	98,556)
Less: Goodwill	8,244)	8,244)	8,256)	8,256)	20,040)
Total assets (adjusted)	77,743)	81,660)	77,117)	76,902)	78,516)
Adjustment to Total MPC Stockholders’ Equity
Total MPC stockholders’ equity (as reported)	24,404)	27,715)	26,206)	22,199)	33,694)
Less: Goodwill	8,244)	8,244)	8,256)	8,256)	20,040)
Total MPC stockholders’ equity (adjusted)	16,160)	19,471)	17,950)	13,943)	13,654)
Adjustment to Net Income (loss) Attributable To MPC
Net income (loss) attributable to MPC (as reported)	9,681)	14,516)	9,738)	(9,826)	2,637)
Add: Goodwill impairment expense	—)	—)	—)	7,394)	1,197)
Net income (loss) attributable to MPC (adjusted)	9,681)	14,516)	9,738)	(2,432)	3,834)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Marathon Petroleum Corp., Financial Data: Reported vs. Adjusted

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Marathon Petroleum Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	6.52%	8.18%	8.12%	-14.08%	2.13%
Adjusted net profit margin	6.52%	8.18%	8.12%	-3.49%	3.09%
Total Asset Turnover
Reported total asset turnover	1.73	1.97	1.41	0.82	1.26
Adjusted total asset turnover	1.91	2.17	1.56	0.91	1.58
Financial Leverage
Reported financial leverage	3.52	3.24	3.26	3.84	2.93
Adjusted financial leverage	4.81	4.19	4.30	5.52	5.75
Return on Equity (ROE)
Reported ROE	39.67%	52.38%	37.16%	-44.26%	7.83%
Adjusted ROE	59.91%	74.55%	54.25%	-17.44%	28.08%
Return on Assets (ROA)
Reported ROA	11.26%	16.15%	11.41%	-11.54%	2.68%
Adjusted ROA	12.45%	17.78%	12.63%	-3.16%	4.88%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Marathon Petroleum Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Marathon Petroleum Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Marathon Petroleum Corp. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Marathon Petroleum Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Marathon Petroleum Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Marathon Petroleum Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to MPC	9,681)	14,516)	9,738)	(9,826)	2,637)
Sales and other operating revenues	148,379)	177,453)	119,983)	69,779)	123,949)
Profitability Ratio
Net profit margin¹	6.52%	8.18%	8.12%	-14.08%	2.13%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to MPC	9,681)	14,516)	9,738)	(2,432)	3,834)
Sales and other operating revenues	148,379)	177,453)	119,983)	69,779)	123,949)
Profitability Ratio
Adjusted net profit margin²	6.52%	8.18%	8.12%	-3.49%	3.09%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to MPC ÷ Sales and other operating revenues
= 100 × 9,681 ÷ 148,379 = 6.52%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to MPC ÷ Sales and other operating revenues
= 100 × 9,681 ÷ 148,379 = 6.52%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Marathon Petroleum Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues	148,379)	177,453)	119,983)	69,779)	123,949)
Total assets	85,987)	89,904)	85,373)	85,158)	98,556)
Activity Ratio
Total asset turnover¹	1.73	1.97	1.41	0.82	1.26
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales and other operating revenues	148,379)	177,453)	119,983)	69,779)	123,949)
Adjusted total assets	77,743)	81,660)	77,117)	76,902)	78,516)
Activity Ratio
Adjusted total asset turnover²	1.91	2.17	1.56	0.91	1.58

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Sales and other operating revenues ÷ Total assets
= 148,379 ÷ 85,987 = 1.73

² Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 148,379 ÷ 77,743 = 1.91

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Marathon Petroleum Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	85,987)	89,904)	85,373)	85,158)	98,556)
Total MPC stockholders’ equity	24,404)	27,715)	26,206)	22,199)	33,694)
Solvency Ratio
Financial leverage¹	3.52	3.24	3.26	3.84	2.93
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	77,743)	81,660)	77,117)	76,902)	78,516)
Adjusted total MPC stockholders’ equity	16,160)	19,471)	17,950)	13,943)	13,654)
Solvency Ratio
Adjusted financial leverage²	4.81	4.19	4.30	5.52	5.75

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total MPC stockholders’ equity
= 85,987 ÷ 24,404 = 3.52

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total MPC stockholders’ equity
= 77,743 ÷ 16,160 = 4.81

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Marathon Petroleum Corp. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to MPC	9,681)	14,516)	9,738)	(9,826)	2,637)
Total MPC stockholders’ equity	24,404)	27,715)	26,206)	22,199)	33,694)
Profitability Ratio
ROE¹	39.67%	52.38%	37.16%	-44.26%	7.83%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to MPC	9,681)	14,516)	9,738)	(2,432)	3,834)
Adjusted total MPC stockholders’ equity	16,160)	19,471)	17,950)	13,943)	13,654)
Profitability Ratio
Adjusted ROE²	59.91%	74.55%	54.25%	-17.44%	28.08%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income (loss) attributable to MPC ÷ Total MPC stockholders’ equity
= 100 × 9,681 ÷ 24,404 = 39.67%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to MPC ÷ Adjusted total MPC stockholders’ equity
= 100 × 9,681 ÷ 16,160 = 59.91%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Marathon Petroleum Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to MPC	9,681)	14,516)	9,738)	(9,826)	2,637)
Total assets	85,987)	89,904)	85,373)	85,158)	98,556)
Profitability Ratio
ROA¹	11.26%	16.15%	11.41%	-11.54%	2.68%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to MPC	9,681)	14,516)	9,738)	(2,432)	3,834)
Adjusted total assets	77,743)	81,660)	77,117)	76,902)	78,516)
Profitability Ratio
Adjusted ROA²	12.45%	17.78%	12.63%	-3.16%	4.88%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income (loss) attributable to MPC ÷ Total assets
= 100 × 9,681 ÷ 85,987 = 11.26%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to MPC ÷ Adjusted total assets
= 100 × 9,681 ÷ 77,743 = 12.45%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Marathon Petroleum Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Marathon Petroleum Corp. (NYSE:MPC)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Marathon Petroleum Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Marathon Petroleum Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)