Net Profit Margin
since 2011
Calculation
Marathon Petroleum Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to MPC1 | ÷ | Sales and other operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 6.52% | = | 100 | × | 9,681) | ÷ | 148,379) |
| Dec 31, 2022 | 8.18% | = | 100 | × | 14,516) | ÷ | 177,453) |
| Dec 31, 2021 | 8.12% | = | 100 | × | 9,738) | ÷ | 119,983) |
| Dec 31, 2020 | -14.08% | = | 100 | × | (9,826) | ÷ | 69,779) |
| Dec 31, 2019 | 2.13% | = | 100 | × | 2,637) | ÷ | 123,949) |
| Dec 31, 2018 | 2.88% | = | 100 | × | 2,780) | ÷ | 96,504) |
| Dec 31, 2017 | 4.59% | = | 100 | × | 3,432) | ÷ | 74,733) |
| Dec 31, 2016 | 1.85% | = | 100 | × | 1,174) | ÷ | 63,339) |
| Dec 31, 2015 | 3.96% | = | 100 | × | 2,852) | ÷ | 72,051) |
| Dec 31, 2014 | 2.58% | = | 100 | × | 2,524) | ÷ | 97,817) |
| Dec 31, 2013 | 2.11% | = | 100 | × | 2,112) | ÷ | 100,160) |
| Dec 31, 2012 | 4.12% | = | 100 | × | 3,389) | ÷ | 82,243) |
| Dec 31, 2011 | 3.04% | = | 100 | × | 2,389) | ÷ | 78,638) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 US$ in millions
The financial performance of Marathon Petroleum Corp. from 2011 to 2023 is characterized by three distinct phases: a period of low-margin stability, a severe contraction in 2020, and a subsequent era of significantly enhanced profitability.
- Historical Margin Stability (2011–2019)
- Between 2011 and 2019, the net profit margin remained relatively narrow, fluctuating between a low of 1.85% in 2016 and a high of 4.59% in 2017. During this interval, net income stayed positive but modest relative to the volume of sales, indicating a period of stable but thin profitability typical of high-volume refining operations.
- The 2020 Contraction
- A significant deviation occurred in 2020, where the net profit margin plummeted to -14.08%. This coincided with a net loss of US$ 9,826 million and a sharp decline in sales and other operating revenues to US$ 69,779 million, representing the lowest revenue figure since 2016. This indicates a period of extreme volatility and operational distress.
- Post-2020 Recovery and Expansion (2021–2023)
- Following the 2020 downturn, there was a substantial increase in both absolute profitability and efficiency. The net profit margin rose to 8.12% in 2021 and peaked at 8.18% in 2022. This period saw a dramatic increase in sales, reaching a peak of US$ 177,453 million in 2022. While the margin slightly moderated to 6.52% in 2023, it remains significantly higher than any level recorded prior to 2021.
- Correlation Between Revenue and Profitability
- The data demonstrates a shift in the relationship between revenue scale and profit margins. While revenues were high in 2019 (US$ 123,949 million), the net profit margin was only 2.13%. In contrast, the revenues of 2021 (US$ 119,983 million) yielded a much higher margin of 8.12%, suggesting a fundamental improvement in cost management or a more favorable pricing environment in the latter years of the analyzed period.
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Comparison to Competitors
Marathon Petroleum Corp., net profit margin, long-term trends, comparison to competitors
| Marathon Petroleum Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2023 | 6.52% | 10.85% | 19.52% | 10.76% |
| Dec 31, 2022 | 8.18% | 15.05% | 23.80% | 13.98% |
| Dec 31, 2021 | 8.12% | 10.04% | 17.63% | 8.33% |
| Dec 31, 2020 | -14.08% | -5.87% | -14.38% | -12.57% |
| Dec 31, 2019 | 2.13% | 2.09% | 22.07% | 5.61% |
| Dec 31, 2018 | 2.88% | 9.33% | 17.18% | 7.46% |
| Dec 31, 2017 | 4.59% | 6.83% | -2.94% | 8.31% |
| Dec 31, 2016 | 1.85% | -0.45% | -15.26% | 3.59% |
| Dec 31, 2015 | 3.96% | 3.53% | -14.98% | 6.22% |
| Dec 31, 2014 | 2.58% | 9.60% | 13.08% | 8.25% |
| Dec 31, 2013 | 2.11% | 9.73% | 16.83% | 7.74% |
| Dec 31, 2012 | 4.12% | 11.35% | 14.54% | 9.90% |
| Dec 31, 2011 | 3.04% | 11.01% | 5.08% | 8.79% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Marathon Petroleum Corp., net profit margin, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Marathon Petroleum Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2023 | 6.52% | 11.63% |
| Dec 31, 2022 | 8.18% | 15.41% |
| Dec 31, 2021 | 8.12% | 9.78% |
| Dec 31, 2020 | -14.08% | -10.51% |
| Dec 31, 2019 | 2.13% | 5.71% |
| Dec 31, 2018 | 2.88% | 8.83% |
| Dec 31, 2017 | 4.59% | 7.00% |
| Dec 31, 2016 | 1.85% | 1.06% |
| Dec 31, 2015 | 3.96% | 3.89% |
| Dec 31, 2014 | 2.58% | 9.06% |
| Dec 31, 2013 | 2.11% | 9.08% |
| Dec 31, 2012 | 4.12% | 10.72% |
| Dec 31, 2011 | 3.04% | 8.41% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
Comparison to Industry (Energy)
Marathon Petroleum Corp., net profit margin, long-term trends, comparison to industry (energy)
| Marathon Petroleum Corp. | Energy | |
|---|---|---|
| Dec 31, 2023 | 6.52% | 11.68% |
| Dec 31, 2022 | 8.18% | 15.29% |
| Dec 31, 2021 | 8.12% | 9.70% |
| Dec 31, 2020 | -14.08% | -13.06% |
| Dec 31, 2019 | 2.13% | 3.11% |
| Dec 31, 2018 | 2.88% | 8.68% |
| Dec 31, 2017 | 4.59% | 6.15% |
| Dec 31, 2016 | 1.85% | 0.54% |
| Dec 31, 2015 | 3.96% | 4.04% |
| Dec 31, 2014 | 2.58% | 9.21% |
| Dec 31, 2013 | 2.11% | 9.44% |
| Dec 31, 2012 | 4.12% | 10.84% |
| Dec 31, 2011 | 3.04% | 8.58% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).