Stock Analysis on Net
Stock Analysis on Net

Marathon Petroleum Corp. (NYSE:MPC)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

Marathon Petroleum Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — —
Total assets (adjusted) 85,987 89,904 85,373 85,158 98,556
Adjustment to Total Debt
Total debt (as reported) 27,283 26,700 25,539 31,584 28,838
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — — —
Add: Current operating lease liabilities 454 368 438 497 604
Add: Long-term operating lease liabilities 764 841 927 1,014 1,875
Total debt (adjusted) 28,501 27,909 26,904 33,095 31,317

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).

1, 2 Equal to total present value of future operating lease payments.

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

Adjusted Financial Ratios for Operating Leases (Summary)

Marathon Petroleum Corp., adjusted financial ratios

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
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
Debt to Equity2
Reported debt to equity 1.12 0.96 0.97 1.42 0.86
Adjusted debt to equity 1.17 1.01 1.03 1.49 0.93
Return on Assets3 (ROA)
Reported ROA 11.26% 16.15% 11.41% -11.54% 2.68%
Adjusted ROA 11.26% 16.15% 11.41% -11.54% 2.68%

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).

1 See details »

2 See details »

3 See details »

Financial 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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Marathon Petroleum Corp. adjusted debt to equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as 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 Total Asset Turnover

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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)
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 Operating Leases
Selected Financial Data (US$ in millions)
Sales and other operating revenues 148,379 177,453 119,983 69,779 123,949
Adjusted total assets 85,987 89,904 85,373 85,158 98,556
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 ÷ 85,987 = 1.73

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 Debt to Equity

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 debt 27,283 26,700 25,539 31,584 28,838
Total MPC stockholders’ equity 24,404 27,715 26,206 22,199 33,694
Solvency Ratio
Debt to equity1 1.12 0.96 0.97 1.42 0.86
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 28,501 27,909 26,904 33,095 31,317
Total MPC stockholders’ equity 24,404 27,715 26,206 22,199 33,694
Solvency Ratio
Adjusted debt to equity2 1.17 1.01 1.03 1.49 0.93

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 Debt to equity = Total debt ÷ Total MPC stockholders’ equity
= 27,283 ÷ 24,404 = 1.12

2 Adjusted debt to equity = Adjusted total debt ÷ Total MPC stockholders’ equity
= 28,501 ÷ 24,404 = 1.17

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Marathon Petroleum Corp. adjusted debt-to-equity ratio 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 for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) attributable to MPC 9,681 14,516 9,738 (9,826) 2,637
Adjusted total assets 85,987 89,904 85,373 85,158 98,556
Profitability Ratio
Adjusted ROA2 11.26% 16.15% 11.41% -11.54% 2.68%

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

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as 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.