Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (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., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal	2,359)	3,565)	380)	(2,267)	(3)
State and local	475)	629)	48)	69)	53)
Foreign	11)	7)	5)	9)	1)
Current	2,845)	4,201)	433)	(2,189)	51)
Federal	18)	191)	(164)	90)	898)
State and local	(46)	98)	(6)	(347)	116)
Foreign	—)	1)	1)	16)	9)
Deferred	(28)	290)	(169)	(241)	1,023)
Income tax provision (benefit)	2,817)	4,491)	264)	(2,430)	1,074)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Marathon Petroleum Corp. current increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Marathon Petroleum Corp. deferred increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Income tax provision (benefit)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Marathon Petroleum Corp. income tax provision (benefit) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Marathon Petroleum Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State and local income taxes, net of federal income tax effects	2.00%	3.00%	2.00%	2.00%	3.00%
Goodwill impairment	0.00%	0.00%	0.00%	-8.00%	3.00%
Noncontrolling interests	-2.00%	-2.00%	-9.00%	0.00%	-3.00%
Legislation	0.00%	0.00%	-3.00%	4.00%	0.00%
Other	-1.00%	0.00%	-2.00%	-1.00%	1.00%
Effective tax rate applied to income (loss) from continuing operations before income taxes	20.00%	22.00%	9.00%	18.00%	25.00%

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
Effective tax rate applied to income (loss) from continuing operations before income taxes	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Marathon Petroleum Corp. effective tax rate applied to income (loss) from continuing operations before income taxes increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Marathon Petroleum Corp., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Employee benefits	549)	481)	495)	647)	693)
Environmental remediation	89)	84)	91)	95)	99)
Finance lease obligations	365)	371)	339)	103)	105)
Operating lease liabilities	229)	224)	263)	453)	498)
Net operating loss carryforwards	44)	44)	113)	232)	18)
Foreign currency	—)	—)	—)	—)	15)
Tax credit carryforwards	10)	20)	19)	19)	14)
Goodwill and other intangibles	71)	56)	35)	—)	—)
Other	68)	44)	67)	80)	74)
Deferred tax assets	1,425)	1,324)	1,422)	1,629)	1,516)
Property, plant and equipment	(2,684)	(2,656)	(2,716)	(3,195)	(3,301)
Inventories	(627)	(686)	(717)	(800)	(652)
Investments in subsidiaries and affiliates	(3,706)	(3,660)	(3,350)	(3,331)	(3,114)
Goodwill and other intangibles	—)	—)	—)	(34)	(304)
Right of use assets	(230)	(223)	(257)	(451)	(498)
Other	(11)	(2)	(18)	(18)	(19)
Deferred tax liabilities	(7,258)	(7,227)	(7,058)	(7,829)	(7,888)
Net deferred tax assets (liabilities)	(5,833)	(5,903)	(5,636)	(6,200)	(6,372)

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
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Marathon Petroleum Corp. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Marathon Petroleum Corp. net deferred tax assets (liabilities) decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Marathon Petroleum Corp., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets (classified in Other noncurrent assets)	1)	1)	2)	3)	20)
	Deferred tax liabilities	5,834)	5,904)	5,638)	6,203)	6,392)

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
Deferred tax assets (classified in Other noncurrent assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Marathon Petroleum Corp. deferred tax liabilities increased from 2021 to 2022 but then slightly decreased 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: Noncurrent deferred tax assets, net	1)	1)	2)	3)	20)
Total assets (adjusted)	85,986)	89,903)	85,371)	85,155)	98,536)
Adjustment to Total Liabilities
Total liabilities (as reported)	54,588)	54,817)	51,792)	54,938)	55,449)
Less: Noncurrent deferred tax liabilities, net	5,834)	5,904)	5,638)	6,203)	6,392)
Total liabilities (adjusted)	48,754)	48,913)	46,154)	48,735)	49,057)
Adjustment to Total MPC Stockholders’ Equity
Total MPC stockholders’ equity (as reported)	24,404)	27,715)	26,206)	22,199)	33,694)
Less: Net deferred tax assets (liabilities)	(5,833)	(5,903)	(5,636)	(6,200)	(6,372)
Total MPC stockholders’ equity (adjusted)	30,237)	33,618)	31,842)	28,399)	40,066)
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: Deferred income tax expense (benefit)	(28)	290)	(169)	(241)	1,023)
Net income (loss) attributable to MPC (adjusted)	9,653)	14,806)	9,569)	(10,067)	3,660)

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	6.51%	8.34%	7.98%	-14.43%	2.95%
Total Asset Turnover
Reported total asset turnover	1.73	1.97	1.41	0.82	1.26
Adjusted total asset turnover	1.73	1.97	1.41	0.82	1.26
Financial Leverage
Reported financial leverage	3.52	3.24	3.26	3.84	2.93
Adjusted financial leverage	2.84	2.67	2.68	3.00	2.46
Return on Equity (ROE)
Reported ROE	39.67%	52.38%	37.16%	-44.26%	7.83%
Adjusted ROE	31.92%	44.04%	30.05%	-35.45%	9.13%
Return on Assets (ROA)
Reported ROA	11.26%	16.15%	11.41%	-11.54%	2.68%
Adjusted ROA	11.23%	16.47%	11.21%	-11.82%	3.71%

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 total 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 slightly deteriorated from 2022 to 2023 not reaching 2021 level.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to MPC	9,653)	14,806)	9,569)	(10,067)	3,660)
Sales and other operating revenues	148,379)	177,453)	119,983)	69,779)	123,949)
Profitability Ratio
Adjusted net profit margin²	6.51%	8.34%	7.98%	-14.43%	2.95%

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 × 9,653 ÷ 148,379 = 6.51%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenues	148,379)	177,453)	119,983)	69,779)	123,949)
Adjusted total assets	85,986)	89,903)	85,371)	85,155)	98,536)
Activity Ratio
Adjusted total asset turnover²	1.73	1.97	1.41	0.82	1.26

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 ÷ 85,986 = 1.73

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	85,986)	89,903)	85,371)	85,155)	98,536)
Adjusted total MPC stockholders’ equity	30,237)	33,618)	31,842)	28,399)	40,066)
Solvency Ratio
Adjusted financial leverage²	2.84	2.67	2.68	3.00	2.46

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
= 85,986 ÷ 30,237 = 2.84

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to MPC	9,653)	14,806)	9,569)	(10,067)	3,660)
Adjusted total MPC stockholders’ equity	30,237)	33,618)	31,842)	28,399)	40,066)
Profitability Ratio
Adjusted ROE²	31.92%	44.04%	30.05%	-35.45%	9.13%

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 × 9,653 ÷ 30,237 = 31.92%

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to MPC	9,653)	14,806)	9,569)	(10,067)	3,660)
Adjusted total assets	85,986)	89,903)	85,371)	85,155)	98,536)
Profitability Ratio
Adjusted ROA²	11.23%	16.47%	11.21%	-11.82%	3.71%

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 × 9,653 ÷ 85,986 = 11.23%

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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 slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Marathon Petroleum Corp. (NYSE:MPC)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (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)