Name: Marathon Petroleum Corp. (NYSE:MPC) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Marathon Petroleum Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Accounts payable	13,761)	15,312)	13,700)	7,803)	11,623)
Payroll and benefits payable	1,115)	967)	911)	732)	1,126)
Accrued taxes	1,221)	1,140)	1,231)	1,105)	1,186)
Debt due within one year	1,954)	1,066)	571)	2,854)	711)
Current operating lease liabilities	454)	368)	438)	497)	604)
Environmental credits liability	778)	429)	—)	—)	—)
Accrued interest payable	316)	315)	—)	—)	—)
Other current liabilities	551)	423)	1,047)	822)	897)
Other current liabilities	1,645)	1,167)	1,047)	822)	897)
Liabilities held for sale	—)	—)	—)	1,850)	—)
Current liabilities	20,150)	20,020)	17,898)	15,663)	16,147)
Long-term debt due after one year	25,329)	25,634)	24,968)	28,730)	28,127)
Deferred income taxes	5,834)	5,904)	5,638)	6,203)	6,392)
Defined benefit postretirement plan obligations	1,102)	1,114)	1,015)	2,121)	1,643)
Long-term operating lease liabilities	764)	841)	927)	1,014)	1,875)
Deferred credits and other liabilities	1,409)	1,304)	1,346)	1,207)	1,265)
Noncurrent liabilities	34,438)	34,797)	33,894)	39,275)	39,302)
Total liabilities	54,588)	54,817)	51,792)	54,938)	55,449)
Redeemable noncontrolling interest	895)	968)	965)	968)	968)
Preferred stock, no shares issued and outstanding, par value $0.01 per share	—)	—)	—)	—)	—)
Common stock, issued, par value $0.01 per share	10)	10)	10)	10)	10)
Common stock, held in treasury, at cost	(43,502)	(31,841)	(19,904)	(15,157)	(15,143)
Additional paid-in capital	33,465)	33,402)	33,262)	33,208)	33,157)
Retained earnings	34,562)	26,142)	12,905)	4,650)	15,990)
Accumulated other comprehensive income (loss)	(131)	2)	(67)	(512)	(320)
Total MPC stockholders’ equity	24,404)	27,715)	26,206)	22,199)	33,694)
Noncontrolling interests	6,100)	6,404)	6,410)	7,053)	8,445)
Total equity	30,504)	34,119)	32,616)	29,252)	42,139)
Total liabilities, redeemable noncontrolling interest and equity	85,987)	89,904)	85,373)	85,158)	98,556)

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 balance sheet reflects a period of significant capital reallocation and a general contraction in the total liability and equity base between 2019 and 2023. Total liabilities remained relatively stable, fluctuating within a narrow range around $54 billion, while total equity experienced notable volatility, declining from $42.1 billion in 2019 to $30.5 billion in 2023.

Liability Composition and Trends: Current liabilities exhibited a gradual upward trend, rising from $16.1 billion in 2019 to $20.1 billion in 2023. This increase was primarily characterized by fluctuations in accounts payable and a rise in debt due within one year, which reached $1.9 billion by the end of 2023. In contrast, noncurrent liabilities trended downward, decreasing from $39.3 billion in 2019 to $34.4 billion in 2023. This was largely supported by a reduction in long-term debt due after one year, which fell from $28.1 billion to $25.3 billion over the five-year period.
Equity and Shareholder Returns: A dominant pattern is observed in the aggressive expansion of common stock held in treasury, which increased from $15.1 billion in 2019 to $43.5 billion in 2023, indicating a substantial commitment to share repurchases. Retained earnings showed significant volatility; a sharp decline to $4.6 billion in 2020 was followed by a consistent and strong recovery, peaking at $34.5 billion in 2023. Despite the growth in retained earnings, total MPC stockholders' equity decreased from $33.6 billion to $24.4 billion, primarily due to the impact of the treasury stock buybacks.
Overall Capital Structure Analysis: The total balance sheet size contracted from $98.5 billion in 2019 to $85.9 billion in 2023. While total liabilities remained nearly flat, the overall reduction in total equity suggests a strategic shift toward capital optimization. The combination of increasing treasury stock and recovering retained earnings indicates a priority on returning value to shareholders through buybacks, even as the total equity base narrowed relative to the total liability load.

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