Stock Analysis on Net

Marathon Petroleum Corp. (NYSE:MPC)

Analysis of Inventory

Microsoft Excel

Inventory Disclosure

Marathon Petroleum Corp., balance sheet: inventory

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Crude oil 3,211 3,047 2,639 2,588 3,472
Refined products 4,940 4,748 4,460 4,478 5,548
Materials and supplies 1,166 1,032 956 933 996
Merchandise 227
Inventories 9,317 8,827 8,055 7,999 10,243

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).

Item Description The company
Inventories Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer. Marathon Petroleum Corp. inventories increased from 2021 to 2022 and from 2022 to 2023.

Adjustment to Inventory: Conversion from LIFO to FIFO

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Inventories
Inventories at LIFO (as reported) 9,317 8,827 8,055 7,999 10,243
Add: Inventory LIFO reserve 2,770 3,720 2,840 871
Inventories at FIFO (adjusted) 12,087 12,547 10,895 7,999 11,114
Adjustment to Current Assets
Current assets (as reported) 32,131 35,242 30,496 28,287 20,170
Add: Inventory LIFO reserve 2,770 3,720 2,840 871
Current assets (adjusted) 34,901 38,962 33,336 28,287 21,041
Adjustment to Total Assets
Total assets (as reported) 85,987 89,904 85,373 85,158 98,556
Add: Inventory LIFO reserve 2,770 3,720 2,840 871
Total assets (adjusted) 88,757 93,624 88,213 85,158 99,427
Adjustment to Total MPC Stockholders’ Equity
Total MPC stockholders’ equity (as reported) 24,404 27,715 26,206 22,199 33,694
Add: Inventory LIFO reserve 2,770 3,720 2,840 871
Total MPC stockholders’ equity (adjusted) 27,174 31,435 29,046 22,199 34,565
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: Increase (decrease) in inventory LIFO reserve (950) 880 2,840 (787) 871
Net income (loss) attributable to MPC (adjusted) 8,731 15,396 12,578 (10,613) 3,508

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. inventory value on Dec 31, 2023 would be $12,087 (in millions) if the FIFO inventory method was used instead of LIFO. Marathon Petroleum Corp. inventories, valued on a LIFO basis, on Dec 31, 2023 were $9,317. Marathon Petroleum Corp. inventories would have been $2,770 higher than reported on Dec 31, 2023 if the FIFO method had been used instead.


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


Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Marathon Petroleum Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Current Ratio
Reported current ratio (LIFO) 1.59 1.76 1.70 1.81 1.25
Adjusted current ratio (FIFO) 1.73 1.95 1.86 1.81 1.30
Net Profit Margin
Reported net profit margin (LIFO) 6.52% 8.18% 8.12% -14.08% 2.13%
Adjusted net profit margin (FIFO) 5.88% 8.68% 10.48% -15.21% 2.83%
Total Asset Turnover
Reported total asset turnover (LIFO) 1.73 1.97 1.41 0.82 1.26
Adjusted total asset turnover (FIFO) 1.67 1.90 1.36 0.82 1.25
Financial Leverage
Reported financial leverage (LIFO) 3.52 3.24 3.26 3.84 2.93
Adjusted financial leverage (FIFO) 3.27 2.98 3.04 3.84 2.88
Return on Equity (ROE)
Reported ROE (LIFO) 39.67% 52.38% 37.16% -44.26% 7.83%
Adjusted ROE (FIFO) 32.13% 48.98% 43.30% -47.81% 10.15%
Return on Assets (ROA)
Reported ROA (LIFO) 11.26% 16.15% 11.41% -11.54% 2.68%
Adjusted ROA (FIFO) 9.84% 16.44% 14.26% -12.46% 3.53%

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 current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. Marathon Petroleum Corp. adjusted current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Marathon Petroleum Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and 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 deteriorated significantly from 2022 to 2023.
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


Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Current assets 32,131 35,242 30,496 28,287 20,170
Current liabilities 20,150 20,020 17,898 15,663 16,147
Liquidity Ratio
Current ratio1 1.59 1.76 1.70 1.81 1.25
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets 34,901 38,962 33,336 28,287 21,041
Current liabilities 20,150 20,020 17,898 15,663 16,147
Liquidity Ratio
Adjusted current ratio2 1.73 1.95 1.86 1.81 1.30

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 Current ratio = Current assets ÷ Current liabilities
= 32,131 ÷ 20,150 = 1.59

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 34,901 ÷ 20,150 = 1.73

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. Marathon Petroleum Corp. adjusted current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to MPC 8,731 15,396 12,578 (10,613) 3,508
Sales and other operating revenues 148,379 177,453 119,983 69,779 123,949
Profitability Ratio
Adjusted net profit margin2 5.88% 8.68% 10.48% -15.21% 2.83%

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 × 8,731 ÷ 148,379 = 5.88%

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 deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Sales and other operating revenues 148,379 177,453 119,983 69,779 123,949
Adjusted total assets 88,757 93,624 88,213 85,158 99,427
Activity Ratio
Adjusted total asset turnover2 1.67 1.90 1.36 0.82 1.25

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 ÷ 88,757 = 1.67

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.

Adjusted Financial Leverage

Microsoft Excel
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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets 88,757 93,624 88,213 85,158 99,427
Adjusted total MPC stockholders’ equity 27,174 31,435 29,046 22,199 34,565
Solvency Ratio
Adjusted financial leverage2 3.27 2.98 3.04 3.84 2.88

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 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
= 88,757 ÷ 27,174 = 3.27

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.

Adjusted Return on Equity (ROE)

Microsoft Excel
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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to MPC 8,731 15,396 12,578 (10,613) 3,508
Adjusted total MPC stockholders’ equity 27,174 31,435 29,046 22,199 34,565
Profitability Ratio
Adjusted ROE2 32.13% 48.98% 43.30% -47.81% 10.15%

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 × 8,731 ÷ 27,174 = 32.13%

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 deteriorated significantly from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to MPC 8,731 15,396 12,578 (10,613) 3,508
Adjusted total assets 88,757 93,624 88,213 85,158 99,427
Profitability Ratio
Adjusted ROA2 9.84% 16.44% 14.26% -12.46% 3.53%

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 × 8,731 ÷ 88,757 = 9.84%

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.