Marathon Petroleum Corp. (NYSE:MPC)

Return on Assets (ROA)

The ROA exhibited significant volatility over the analyzed period. Starting at 2.68% at the end of 2019, it sharply declined to -11.54% in 2020, indicating a period of negative asset profitability. Subsequently, it rebounded strongly to 11.41% in 2021 and continued to improve to 16.15% in 2022. However, there was a slight decrease in 2023 to 11.26%, although the level remained well above early period results and negative values observed in 2020.

Financial Leverage

The financial leverage ratio demonstrated a generally increasing trend with some fluctuations. It rose from 2.93 in 2019 to 3.84 in 2020, suggesting an increased use of debt relative to equity. This ratio then decreased to 3.26 in 2021 and was relatively stable at 3.24 in 2022. In 2023, it increased again to 3.52, which may imply a moderate intensification in leveraging after a period of stabilization.

Return on Equity (ROE)

The ROE showed extreme variability and large swings throughout the timeframe. Beginning at 7.83% in 2019, it plummeted to -44.26% in 2020, signaling significant net losses relative to equity during that year. In 2021, the ROE surged dramatically to 37.16%, followed by further improvement to a peak of 52.38% in 2022. Despite declining to 39.67% in 2023, the value remained substantially elevated compared to the initial and negative figures.

Net Profit Margin

The net profit margin exhibited significant volatility over the analyzed period. It started at 2.13% in 2019, sharply declined to a negative figure of -14.08% in 2020, indicating a loss-making year. The margin then rebounded to positive levels, reaching 8.12% in 2021 and maintaining a similar level at 8.18% in 2022 before decreasing to 6.52% in 2023. This pattern suggests a recovery from substantial operational challenges in 2020, followed by stabilization, though a slight erosion in profitability was observed in the latest year.

Asset Turnover

Asset turnover showed a fluctuating but overall upward trajectory. The ratio decreased from 1.26 in 2019 to 0.82 in 2020, reflecting lower efficiency in using assets to generate sales during the downturn. Subsequently, it increased markedly to 1.41 in 2021 and further to a peak of 1.97 in 2022. In 2023, a slight decline to 1.73 was noted, yet the level remained elevated compared to earlier years. This trend indicates improving operational efficiency and better utilization of assets, particularly evident after 2020.

Financial Leverage

Financial leverage increased from 2.93 in 2019 to 3.84 in 2020, suggesting greater reliance on debt or other liabilities relative to equity during the challenging year. It then decreased to 3.26 in 2021 and remained somewhat stable at 3.24 in 2022. In 2023, leverage increased again to 3.52. Overall, the data reveals a modest upward trend in leverage over the period, with fluctuations that may reflect strategic adjustments in capital structure or responses to market conditions.

Return on Equity (ROE)

Return on equity exhibited extreme variation throughout the period. It was a positive 7.83% in 2019, dropped sharply to -44.26% in 2020 consistent with the losses indicated by the net profit margin, then surged to 37.16% in 2021. This positive momentum continued with an increase to 52.38% in 2022, before decreasing to 39.67% in 2023. The pattern reflects a recovery-driven improvement in shareholder returns following the exceptional downturn in 2020, with ROE peaking in 2022 and sustaining robust levels thereafter.

Tax Burden

The tax burden shows variability over the analyzed period, starting at 0.71 in 2019 and rising sharply to 0.97 in 2021, indicating a higher retention of pre-tax income after taxes that year. In the subsequent years, it moderates to around 0.76-0.77, suggesting a stabilization in the effective tax impact relative to earnings.

Interest Burden

The interest burden exhibits a general improvement trend from 0.75 in 2019 to about 0.91-0.94 in the last two years. This suggests a more efficient management of interest expenses relative to operating income, with less income being consumed by interest obligations especially notable after 2020.

EBIT Margin

The EBIT margin presents significant volatility. It dropped sharply into negative territory in 2020 (-15.65%), reflecting a period of operational loss or significant margin compression. A strong recovery is observed in 2021 and 2022, with margins reaching 9.39% and 11.38% respectively, before a slight decline to 9.28% in 2023. Overall, margins improved markedly post-2020 albeit with some fluctuation.

Asset Turnover

Asset turnover demonstrates a notable increase over the period, starting at 1.26 in 2019, declining to 0.82 in 2020, then recovering sharply to peak at 1.97 in 2022 before a decline to 1.73 in 2023. This indicates more efficient utilization of assets to generate sales following the lower performance year of 2020.

Financial Leverage

Financial leverage increased from 2.93 in 2019 to a peak of 3.84 in 2020, then declined to around 3.2 in 2021 and 2022, before rising again to 3.52 in 2023. This reflects variability in the degree of debt usage relative to equity, with elevated leverage particularly evident during 2020, possibly connected to financing needs during challenging periods.

Return on Equity (ROE)

ROE experienced dramatic swings, plummeting to -44.26% in 2020 indicative of heavy losses or substantial equity erosion that year. Recovery was strong in subsequent years, reaching 37.16% in 2021 and peaking at 52.38% in 2022, before a decrease to 39.67% in 2023. Despite volatility, the overall trend post-2020 shows robust profitability relative to shareholder equity.

Net Profit Margin

The net profit margin exhibited significant volatility over the analyzed period. Beginning at a positive 2.13% in 2019, there was a marked decline to -14.08% in 2020, reflecting a substantial decrease in profitability. However, the company showed a strong recovery in 2021 and 2022 with margins of 8.12% and 8.18%, respectively. In 2023, the margin slightly decreased to 6.52%, indicating a modest reduction but remaining at a healthy positive level compared to the earlier years.

Asset Turnover

Asset turnover demonstrated variability but generally trended upwards during the period. It started at 1.26 in 2019, dropped to 0.82 in 2020, likely due to operational challenges or reduced sales efficiency. Following this dip, it increased significantly to 1.41 in 2021 and peaked at 1.97 in 2022, suggesting improved utilization of assets to generate revenue. In 2023, there was a slight decrease to 1.73, though the ratio remained higher than the initial years, indicating sustained relatively efficient asset management.

Return on Assets (ROA)

Return on Assets mirrored the trend observed in net profit margin, with substantial fluctuations. The ROA was 2.68% in 2019 but declined sharply to -11.54% in 2020, signaling negative returns on the asset base during that year. The subsequent years showed a strong recovery, with ROA rising to 11.41% in 2021 and peaking at 16.15% in 2022, reflecting improved profitability relative to assets. In 2023, ROA decreased to 11.26%, which, while lower than the previous year’s peak, still indicates a solid return and better asset efficiency compared to the earlier period.

The financial data reveals notable fluctuations and recoveries across multiple key ratios and margins over the five-year period ending in 2023.

Tax Burden

The tax burden ratio shows variability, initially at 0.71 in 2019, peaking near unity at 0.97 in 2021, and stabilizing around 0.76-0.77 in the subsequent years. This indicates some fluctuation in effective tax rates or taxable income relative to earnings before tax, with a return to a moderate tax burden after 2021.

Interest Burden

The interest burden ratio improved markedly from 0.75 in 2019 to a high of 0.94 in 2022, before a slight decline to 0.91 in 2023. The upward trend suggests a decreasing proportion of earnings consumed by interest expenses over the period, reflecting potentially lower debt costs or improved earnings before interest.

EBIT Margin

EBIT margin exhibited significant volatility, with a sharp decline to negative 15.65% in 2020, likely indicating operational challenges or extraordinary costs. This was followed by a strong recovery reaching 11.38% in 2022, though slightly decreasing to 9.28% in 2023. The rebound suggests improved operational efficiency and cost management post-2020.

Asset Turnover

The asset turnover ratio decreased in 2020 to 0.82 from 1.26 in 2019, indicating reduced efficiency in utilizing assets to generate sales during the downturn year. However, it rose significantly thereafter, peaking at 1.97 in 2022, before a slight decrease to 1.73 in 2023. This pattern reflects strong asset utilization improvement in the recovery years.

Return on Assets (ROA)

ROA mirrored the trends in profitability, plunging to negative 11.54% in 2020, consistent with the negative EBIT margin observed. It recovered strongly to 16.15% in 2022, before dropping to 11.26% in 2023. This indicates an overall recovery in asset profitability but with some moderation in the most recent year.

In summary, the data reflects a significant disruption in 2020, impacting profitability and asset efficiency. Subsequent years show a pronounced recovery in operational performance, asset utilization, and profitability, though some metrics slightly eased in 2023 relative to peak recovery levels. The trends suggest resilience and improvement in core financial performance after a challenging period.

Tax Burden

The tax burden ratio shows some fluctuation over the periods presented. It started at 0.71 in 2019, peaked at 0.97 in 2021, and then decreased to slightly above 0.75 in 2022 and 2023. Missing data for 2020 prevents complete trend analysis in the initial years. Overall, the tax burden appears to stabilize at a moderate level after reaching a high point in 2021.

Interest Burden

The interest burden ratio exhibits an improving trend from 2019 onwards. It increased from 0.75 in 2019 to 0.89 in 2021, further improving to 0.94 in 2022, followed by a slight decline to 0.91 in 2023. The absence of 2020 data limits early period interpretation. Generally, this suggests a strengthening ability to cover interest expenses relative to operating income over time.

EBIT Margin

The EBIT margin demonstrates significant volatility during the analyzed period. Starting at a positive 3.99% in 2019, it plunged to a negative 15.65% in 2020, indicating operational losses. A strong recovery followed in 2021 with 9.39%, rising further to 11.38% in 2022 before slightly declining to 9.28% in 2023. This suggests a rebound from a challenging fiscal year, with margins stabilizing at a relatively healthy level subsequently.

Net Profit Margin

The net profit margin parallels the EBIT margin trend, starting at 2.13% in 2019, decreasing sharply to -14.08% in 2020, reflecting net losses. It improved significantly in 2021 to 8.12%, sustaining a similar level of 8.18% in 2022, and then decreasing to 6.52% in 2023. This indicates recovery from prior losses with a slight weakening in the most recent year, demonstrating profitability challenges despite positive operating results.