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Marathon Petroleum Corp. (NYSE:MPC)

This company has been moved to the archive! The financial data has not been updated since November 5, 2024.

Common-Size Income Statement

Marathon Petroleum Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Sales and other operating revenues 100.00 100.00 100.00 100.00 100.00
Cost of revenues -86.65 -85.47 -91.69 -94.20 -88.94
Gross margin 13.35% 14.53% 8.31% 5.80% 11.06%
Income (loss) from equity method investments 0.50 0.37 0.38 -1.34 0.32
Net gain on disposal of assets 0.15 0.60 0.02 0.10 0.25
Other income 0.65 0.44 0.39 0.17 0.13
Impairment expense 0.00 0.00 0.00 -12.08 -0.97
Depreciation and amortization -2.23 -1.81 -2.80 -4.84 -2.94
Selling, general and administrative expenses -2.05 -1.56 -2.11 -3.88 -2.75
Restructuring expenses 0.00 0.00 0.00 -0.53 0.00
Other taxes -0.59 -0.46 -0.60 -0.96 -0.61
Income (loss) from operations 9.78% 12.10% 3.58% -17.55% 4.50%
Interest income 0.36 0.11 0.01 0.01 0.03
Interest expense, net of interest capitalized -0.85 -0.67 -1.06 -1.91 -1.00
Pension and other postretirement non-service costs 0.06 0.00 -0.05 -0.02 0.00
Gain (loss) on extinguishment of debt -0.01 0.00 -0.11 0.01 0.00
Investments, net (premium) discount amortization 0.10 0.02 0.00 0.00 0.00
Other financial costs -0.01 -0.01 -0.03 -0.06 -0.04
Net interest and other financial costs -0.35% -0.56% -1.24% -1.96% -1.01%
Income (loss) from continuing operations before income taxes 9.43% 11.53% 2.35% -19.51% 3.49%
(Provision) benefit for income taxes on continuing operations -1.90 -2.53 -0.22 3.48 -0.87
Income (loss) from continuing operations, net of tax 7.53% 9.00% 2.13% -16.02% 2.63%
Income from discontinued operations, net of tax 0.00 0.04 7.04 1.73 0.00
Net income (loss) 7.53% 9.04% 9.17% -14.30% 2.63%
Net (income) loss attributable to noncontrolling interests -1.00 -0.86 -1.05 0.22 -0.50
Net income (loss) attributable to MPC 6.52% 8.18% 8.12% -14.08% 2.13%

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).

The financial performance from 2019 to 2023 is characterized by extreme volatility centered around a significant downturn in 2020, followed by a recovery and stabilization of margins through 2023.

Gross Margin and Revenue Costs
Gross margins experienced a sharp contraction in 2020, falling to 5.80% as the cost of revenues peaked at 94.20% of total sales. A subsequent recovery occurred, with the gross margin reaching a period high of 14.53% in 2022 before settling at 13.35% in 2023. This trend indicates a significant fluctuation in the direct cost of goods sold relative to revenue.
Operating Efficiency and Expenses
Operating expenses as a percentage of sales generally trended downward following 2020. Selling, general, and administrative expenses decreased from 3.88% in 2020 to 2.05% in 2023. Depreciation and amortization followed a similar pattern, declining from a peak of 4.84% in 2020 to 2.23% in 2023, suggesting improved operational leverage.
Non-Recurring and Exceptional Items
The operating results for 2020 were severely impacted by a non-recurring impairment expense equivalent to 12.08% of revenues, which contributed to an operating loss of 17.55%. In contrast, 2021 was characterized by a substantial positive impact from discontinued operations, which added 7.04% to the net income margin, offsetting lower operating margins compared to later years.
Financial Costs and Debt Servicing
Net interest and other financial costs showed a consistent reduction as a percentage of revenue, moving from 1.96% in 2020 to 0.35% in 2023. This indicates a diminishing relative impact of interest expenses on the overall income statement over the five-year period.
Net Profitability Trends
Net income attributable to the company shifted from a significant loss of 14.08% in 2020 to a period of stability between 2021 and 2023. The net margin remained resilient in the final three years, ranging from 6.52% to 8.18%, despite the cessation of gains from discontinued operations.

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