Marathon Petroleum Corp. (NYSE:MPC)

Sales and other operating revenues

The revenues displayed a general upward trend from 2011 to 2019, increasing from approximately 78.6 billion USD in 2011 to a peak of around 124 billion USD in 2019. There was a marked decrease in 2020 to about 69.8 billion USD, likely impacted by external disruptions. Revenues then rebounded strongly in 2021 and 2022, reaching a high of approximately 177.5 billion USD in 2022 before declining to 148.4 billion USD in 2023. The data shows substantial volatility post-2019, with sharp increases and decreases indicating sensitivity to market conditions.

Income (loss) from operations

Operating income demonstrated variability over the period. The figure rose from around 3.7 billion USD in 2011 to a peak near 5.6 billion USD in both 2018 and 2019. However, in 2020, there was a significant loss from operations amounting to approximately -12.2 billion USD, reflecting a considerable operational challenge. Operations recovered in 2021 with positive income of roughly 4.3 billion USD, followed by a substantial increase to about 21.5 billion USD in 2022, before dropping again to roughly 14.5 billion USD in 2023. The fluctuations suggest periods of considerable operational stress and recovery, with 2022 representing an exceptional year.

Net income (loss) attributable to MPC

Net income followed a somewhat similar pattern to operating income but with greater relative variation. It increased from about 2.4 billion USD in 2011, peaking intermittently near 3.4 billion USD in 2017. A sharp net loss of approximately -9.8 billion USD was recorded in 2020, coinciding with the operational loss. Subsequent recovery was strong, with net income surging to nearly 9.7 billion USD in 2021 and then reaching approximately 14.5 billion USD in 2022. However, in 2023, net income declined to about 9.7 billion USD. Overall, net income demonstrates sensitivity to operational conditions and market factors, with notable recoveries post-2020 losses.

The analysis of the annual financial data reveals notable trends in current assets and total assets over the period examined.

Current Assets

Current assets show a fluctuating but generally upward trajectory from 2011 to 2023. Initially, there is a slight increase from 12,001 million USD in 2011 to 13,029 million USD in 2012, followed by a modest decline and stabilization around 11,339 to 10,401 million USD between 2013 and 2016. Beginning in 2017, current assets experience a strong and consistent increase, peaking at 35,242 million USD in 2022 before a slight decline to 32,131 million USD in 2023.

Total Assets

Total assets demonstrate steady growth from 2011 to 2017, rising from 25,745 million USD to 49,047 million USD. A pronounced surge occurs in 2018, nearly doubling the asset base to 92,940 million USD. Total assets remain relatively stable with marginal increases to 98,556 million USD in 2019, then decrease to 85,158 million USD in 2020. Following this dip, total assets show a slight recovery and moderate fluctuation, ending at 85,987 million USD in 2023.

Overall Trends and Insights

The data illustrates a significant expansion in total assets primarily during the 2017-2018 period, suggesting major acquisitions, investments, or asset revaluations around that time. The surge is followed by a period of volatility and moderate decline, indicating possible asset disposals or market adjustments. Current assets growth, especially post-2017, aligns with the expansion phase but exhibits more stability overall. The slight decrease in current assets in 2023 may warrant attention to liquidity management or short-term asset optimization. Together, these trends suggest a company navigating growth phases with corresponding changes in asset structure and liquidity position.

Current Liabilities

The current liabilities exhibit an overall upward trend from 2011 through 2023. Initially, the value decreased from $9,591 million in 2011 to $6,345 million in 2015, indicating improved short-term obligations management during this period. However, starting in 2016, current liabilities rose consistently, reaching $20,150 million by 2023. This suggests increasing short-term financial obligations in recent years, potentially reflecting greater operational scale or liquidity requirements.

Total Liabilities

Total liabilities generally increased over the period, starting at $16,240 million in 2011 and peaking at $55,449 million in 2019. After 2019, the level of total liabilities stabilized somewhat but remained elevated, closing at $54,588 million in 2023. The notable surge between 2017 and 2019 indicates significant increases in obligations, possibly due to strategic investments or greater borrowing.

Total Debt

Total debt shows an accelerating growth pattern between 2011 and 2015, climbing from $3,307 million to $11,925 million. After a slight decrease in 2016, debt rises again sharply until 2019, reaching a high of $28,838 million. Following 2019, total debt fluctuated, declining to $25,539 million in 2021 before modestly increasing to $27,283 million in 2023. This pattern points to active debt management with periods of both increased borrowing and debt reduction.

Total Stockholders’ Equity

Stockholders’ equity experienced an overall increasing trend from $9,505 million in 2011 to a peak of $35,175 million in 2018. After this peak, equity declined to $22,199 million in 2019 and 2020, suggesting possible impacts from business challenges or distributions to shareholders. Subsequently, it recovered moderately to $27,715 million in 2022 before decreasing again to $24,404 million in 2023. These fluctuations indicate variability in retained earnings and equity financing activities over the years.

Operating Activities

The net cash provided by operating activities exhibits considerable fluctuations over the observed period. Starting from a moderate level of approximately $3.3 billion at the end of 2011, cash flow from operations increased substantially in 2012 to roughly $4.5 billion. This was followed by a general decline over the next two years, reaching around $3.1 billion in 2014. From 2015 onward, the net cash from operations experienced a general upward trend, peaking notably at over $9.4 billion in 2019. However, 2020 saw a sharp contraction to approximately $0.8 billion, likely reflecting extraordinary circumstances during that year. This was followed by a significant recovery in both 2021 and 2022, with cash flows reaching all-time highs of about $16.3 billion and $14.1 billion respectively, before slightly declining but remaining robust in 2023.

Investing Activities

Net cash used in investing activities showed a predominantly negative trend, indicating consistent capital expenditures or investments over the years. The year 2011 is an exception with a positive inflow of roughly $1.3 billion. From 2012 to 2015, the cash outflow deepened progressively, reaching a peak outflow of around $4.5 billion in 2014. Although the outflow moderated slightly in subsequent years, it remained substantial, with fluctuations including a pronounced outflow at the end of 2018 and 2019. The year 2021 reflects a considerable cash outflow of about $6.5 billion, followed by a surprising positive inflow in 2022 above $600 million, which is an anomaly in the overall pattern. In 2023, the cash used in investing activities returned to negative territory, approaching $3.1 billion.

Financing Activities

Cash flows related to financing activities predominantly show negative values, indicating net repayments or buybacks rather than new financing. The earliest years demonstrate moderate cash outflows between approximately $1.2 billion to $3.2 billion, except for 2014 which shows a positive cash inflow. The period from 2018 onwards is characterized by notably increased outflows, with extreme negative values in 2021 and 2022 exceeding $13 billion and $14 billion respectively. This suggests substantial debt repayments, dividend payments, or share repurchases during these years. There is no indication of significant financing inflows in the later years, highlighting an aggressive deleveraging or capital return strategy.

Overall Financial Cash Flow Trends

The company demonstrates a pattern of generating strong cash flow from operations, especially from 2015 onwards, notwithstanding a sharp impact in 2020. Investing activities show an overall trend of cash outflows, consistent with ongoing investment or capital expenditure commitments. Financing cash flows consistently reflect net repayments or capital returns with an intensification in the latter years, indicating a strategic emphasis on capital structure optimization. The interplay between these activities suggests a company prioritizing robust operational cash generation combined with focused investment and disciplined capital management.

The analysis of the annual financial data reveals distinct and notable trends in the key earnings and dividend metrics over the examined period.

Basic Earnings Per Share (EPS)

The basic EPS exhibited fluctuations throughout the years, starting at a moderate level of 3.35 USD in 2011. It increased to 4.97 USD in 2012, followed by a decrease to 3.34 USD in 2013. Subsequently, there was a gradual increase peaking at 6.76 USD in 2017. After 2017, EPS showed some decline, including a sharp drop to negative -15.13 USD in 2020, indicating a significant loss that year. Recovery was strong post-2020, with EPS rising to 15.34 USD in 2021 and reaching a peak of 28.31 USD in 2022, before slightly decreasing to 23.73 USD in 2023. This pattern indicates periods of volatility with a significant downturn in 2020 followed by a robust recovery.

Diluted Earnings Per Share (EPS)

The diluted EPS followed a trend very similar to that of the basic EPS, with values closely aligned each year. This consistency suggests a stable share dilution impact over the period. It also reflects the same fluctuations, including the sharp decrease in 2020 and the subsequent strong rebound in 2021 and 2022, maintaining a consistent trend with basic EPS.

Dividend Per Share

The dividend per share showed a consistent upward trajectory throughout the period. Starting from a low of 0.23 USD in 2011, dividends increased almost every year, reaching 3.08 USD by the end of 2023. This steady growth in dividends demonstrates the company’s commitment to returning value to shareholders despite fluctuations in earnings. Notably, dividends continued to increase even during years of volatility in earnings, including the sharp EPS decline in 2020, suggesting a policy of maintaining or growing shareholder payouts.

In summary, the company experienced earnings volatility over the period, including a major downturn in 2020, followed by a significant recovery in subsequent years. Meanwhile, dividend payments maintained a steady upward trend, reflecting sustained shareholder returns despite income fluctuations.