Return on Equity (ROE)
since 2011
Calculation
Marathon Petroleum Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to MPC1 | ÷ | Total MPC stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 39.67% | = | 100 | × | 9,681) | ÷ | 24,404) |
| Dec 31, 2022 | 52.38% | = | 100 | × | 14,516) | ÷ | 27,715) |
| Dec 31, 2021 | 37.16% | = | 100 | × | 9,738) | ÷ | 26,206) |
| Dec 31, 2020 | -44.26% | = | 100 | × | (9,826) | ÷ | 22,199) |
| Dec 31, 2019 | 7.83% | = | 100 | × | 2,637) | ÷ | 33,694) |
| Dec 31, 2018 | 7.90% | = | 100 | × | 2,780) | ÷ | 35,175) |
| Dec 31, 2017 | 24.46% | = | 100 | × | 3,432) | ÷ | 14,033) |
| Dec 31, 2016 | 8.66% | = | 100 | × | 1,174) | ÷ | 13,557) |
| Dec 31, 2015 | 21.55% | = | 100 | × | 2,852) | ÷ | 13,237) |
| Dec 31, 2014 | 23.48% | = | 100 | × | 2,524) | ÷ | 10,751) |
| Dec 31, 2013 | 19.34% | = | 100 | × | 2,112) | ÷ | 10,920) |
| Dec 31, 2012 | 28.98% | = | 100 | × | 3,389) | ÷ | 11,694) |
| Dec 31, 2011 | 25.13% | = | 100 | × | 2,389) | ÷ | 9,505) |
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 Return on Equity (ROE) from 2011 to 2023 exhibits significant volatility, characterized by an initial period of relative stability, a subsequent phase of compression and volatility, and a recent period of extreme fluctuation and high returns.
- Early Stability Phase (2011–2015)
- During this interval, ROE remained consistently strong, fluctuating between a low of 19.34% and a peak of 28.98%. Net income stayed within a stable range of approximately $2.1 billion to $3.4 billion, while stockholders' equity grew modestly from $9.5 billion to $13.2 billion.
- Volatility and Equity Expansion (2016–2019)
- A notable decline in ROE occurred in 2016, dropping to 8.66%. Although a recovery to 24.46% was observed in 2017, ROE fell sharply in 2018 and 2019 to 7.90% and 7.83%, respectively. This downward trend in ROE coincided with a substantial increase in the equity base, which surged from $14.0 billion in 2017 to $35.2 billion in 2018, creating a dilution effect on the return despite net income remaining relatively stable.
- The 2020 Crisis and High-Growth Recovery (2020–2023)
- The year 2020 represented a severe financial downturn, with a net loss of $9.8 billion resulting in a negative ROE of -44.26%. This was followed by a rapid and aggressive recovery. ROE surged to 37.16% in 2021 and reached a peak of 52.38% in 2022, driven by a record net income of $14.5 billion. While ROE moderated to 39.67% in 2023, the returns remained significantly higher than the historical averages seen prior to 2021.
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Comparison to Competitors
Marathon Petroleum Corp., ROE, long-term trends, comparison to competitors
| Marathon Petroleum Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2023 | 39.67% | 13.28% | 22.23% | 17.58% |
| Dec 31, 2022 | 52.38% | 22.27% | 38.91% | 28.58% |
| Dec 31, 2021 | 37.16% | 11.24% | 17.79% | 13.67% |
| Dec 31, 2020 | -44.26% | -4.21% | -9.05% | -14.28% |
| Dec 31, 2019 | 7.83% | 2.03% | 20.55% | 7.48% |
| Dec 31, 2018 | 7.90% | 9.59% | 19.59% | 10.87% |
| Dec 31, 2017 | 24.46% | 6.21% | -2.79% | 10.50% |
| Dec 31, 2016 | 8.66% | -0.34% | -10.34% | 4.69% |
| Dec 31, 2015 | 21.55% | 3.00% | -11.14% | 9.45% |
| Dec 31, 2014 | 23.48% | 12.41% | 13.23% | 18.65% |
| Dec 31, 2013 | 19.34% | 14.37% | 17.58% | 18.72% |
| Dec 31, 2012 | 28.98% | 19.18% | 17.56% | 27.06% |
| Dec 31, 2011 | 25.13% | 22.16% | 19.07% | 26.59% |
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., ROE, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Marathon Petroleum Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2023 | 39.67% | 16.46% |
| Dec 31, 2022 | 52.38% | 27.31% |
| Dec 31, 2021 | 37.16% | 13.24% |
| Dec 31, 2020 | -44.26% | -9.63% |
| Dec 31, 2019 | 7.83% | 6.59% |
| Dec 31, 2018 | 7.90% | 11.08% |
| Dec 31, 2017 | 24.46% | 7.66% |
| Dec 31, 2016 | 8.66% | 1.07% |
| Dec 31, 2015 | 21.55% | 4.49% |
| Dec 31, 2014 | 23.48% | 15.37% |
| Dec 31, 2013 | 19.34% | 16.83% |
| Dec 31, 2012 | 28.98% | 22.69% |
| Dec 31, 2011 | 25.13% | 23.57% |
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., ROE, long-term trends, comparison to industry (energy)
| Marathon Petroleum Corp. | Energy | |
|---|---|---|
| Dec 31, 2023 | 39.67% | 16.67% |
| Dec 31, 2022 | 52.38% | 26.98% |
| Dec 31, 2021 | 37.16% | 13.21% |
| Dec 31, 2020 | -44.26% | -12.46% |
| Dec 31, 2019 | 7.83% | 3.63% |
| Dec 31, 2018 | 7.90% | 10.63% |
| Dec 31, 2017 | 24.46% | 6.58% |
| Dec 31, 2016 | 8.66% | 0.52% |
| Dec 31, 2015 | 21.55% | 4.61% |
| Dec 31, 2014 | 23.48% | 15.28% |
| Dec 31, 2013 | 19.34% | 16.85% |
| Dec 31, 2012 | 28.98% | 22.06% |
| Dec 31, 2011 | 25.13% | 22.94% |
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).