Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Marathon Petroleum Corp., ROIC calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 10,783) | 17,951) | 6,187) | (10,978) | 6,182) | |
| Invested capital2 | 63,897) | 69,547) | 63,579) | 70,186) | 82,004) | |
| Performance Ratio | ||||||
| ROIC3 | 16.88% | 25.81% | 9.73% | -15.64% | 7.54% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Chevron Corp. | 9.17% | 19.68% | 10.04% | -5.22% | 0.44% | |
| ConocoPhillips | 15.20% | 28.02% | 13.45% | -5.92% | 12.76% | |
| Exxon Mobil Corp. | 12.32% | 21.12% | 12.01% | -12.45% | 5.40% | |
| Occidental Petroleum Corp. | 9.72% | 22.25% | 7.26% | -23.53% | -0.80% | |
| Pioneer Natural Resources Co. | 16.60% | 30.31% | 8.67% | -0.88% | 6.44% | |
| Valero Energy Corp. | 15.39% | 27.16% | 12.49% | -4.03% | 10.87% | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 10,783 ÷ 63,897 = 16.88%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Marathon Petroleum Corp. ROIC improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Decomposition of ROIC
Marathon Petroleum Corp., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2023 year is the decrease in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Marathon Petroleum Corp., OPM calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 10,783) | 17,951) | 6,187) | (10,978) | 6,182) | |
| Add: Cash operating taxes2 | 3,010) | 4,421) | 705) | (1,899) | 324) | |
| Net operating profit before taxes (NOPBT) | 13,793) | 22,372) | 6,892) | (12,877) | 6,506) | |
| Sales and other operating revenues | 148,379) | 177,453) | 119,983) | 69,779) | 123,949) | |
| Profitability Ratio | ||||||
| OPM3 | 9.30% | 12.61% | 5.74% | -18.45% | 5.25% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Chevron Corp. | 13.94% | 22.85% | 15.98% | -8.90% | 4.08% | |
| ConocoPhillips | 29.62% | 36.63% | 29.99% | -13.37% | 31.34% | |
| Exxon Mobil Corp. | 15.71% | 19.95% | 14.69% | -17.59% | 8.83% | |
| Occidental Petroleum Corp. | 26.23% | 41.51% | 20.91% | -79.93% | 6.27% | |
| Pioneer Natural Resources Co. | 33.11% | 41.37% | 16.29% | -1.85% | 11.34% | |
| Valero Energy Corp. | 7.27% | 9.65% | 5.33% | -3.98% | 4.62% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
OPM = 100 × NOPBT ÷ Sales and other operating revenues
= 100 × 13,793 ÷ 148,379 = 9.30%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Marathon Petroleum Corp. OPM improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Turnover of Capital (TO)
Marathon Petroleum Corp., TO calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | 148,379) | 177,453) | 119,983) | 69,779) | 123,949) | |
| Invested capital1 | 63,897) | 69,547) | 63,579) | 70,186) | 82,004) | |
| Efficiency Ratio | ||||||
| TO2 | 2.32 | 2.55 | 1.89 | 0.99 | 1.51 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Chevron Corp. | 0.93 | 1.11 | 0.80 | 0.48 | 0.71 | |
| ConocoPhillips | 0.69 | 1.04 | 0.60 | 0.37 | 0.56 | |
| Exxon Mobil Corp. | 1.09 | 1.34 | 1.01 | 0.65 | 0.84 | |
| Occidental Petroleum Corp. | 0.50 | 0.65 | 0.45 | 0.28 | 0.24 | |
| Pioneer Natural Resources Co. | 0.58 | 0.76 | 0.55 | 0.41 | 0.58 | |
| Valero Energy Corp. | 2.83 | 3.54 | 2.56 | 1.58 | 2.66 | |
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).
1 Invested capital. See details »
2 2023 Calculation
TO = Sales and other operating revenues ÷ Invested capital
= 148,379 ÷ 63,897 = 2.32
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Marathon Petroleum Corp. TO improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Effective Cash Tax Rate (CTR)
Marathon Petroleum Corp., CTR calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | 10,783) | 17,951) | 6,187) | (10,978) | 6,182) | |
| Add: Cash operating taxes2 | 3,010) | 4,421) | 705) | (1,899) | 324) | |
| Net operating profit before taxes (NOPBT) | 13,793) | 22,372) | 6,892) | (12,877) | 6,506) | |
| Tax Rate | ||||||
| CTR3 | 21.82% | 19.76% | 10.23% | — | 4.97% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Chevron Corp. | 29.08% | 22.40% | 21.79% | — | 85.07% | |
| ConocoPhillips | 25.68% | 26.41% | 25.25% | — | 27.88% | |
| Exxon Mobil Corp. | 27.99% | 21.11% | 19.45% | — | 27.33% | |
| Occidental Petroleum Corp. | 25.46% | 17.63% | 22.36% | — | 152.57% | |
| Pioneer Natural Resources Co. | 13.75% | 3.25% | 2.75% | — | 2.05% | |
| Valero Energy Corp. | 25.22% | 20.60% | 8.53% | — | 11.52% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 3,010 ÷ 13,793 = 21.82%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Marathon Petroleum Corp. CTR increased from 2021 to 2022 and from 2022 to 2023. |