Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Marathon Petroleum Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The analysis of liquidity ratios over the observed periods indicates notable fluctuations and evolving trends.
- Current Ratio
- The current ratio demonstrates a generally stable performance with some variability. Starting near 1.2 in early 2019, it showed a slight increase, peaking around 2.02 by the end of 2021. Post-2021, the ratio exhibits a declining trend, dropping to approximately 1.23 by late 2024. This suggests that while the company maintained a solid ability to cover its short-term liabilities initially, its liquidity buffer has gradually decreased in recent periods.
- Quick Ratio
- The quick ratio follows a more volatile pattern. Initially around 0.5-0.6 from 2019 to early 2020, it dips to a low near 0.39 in late 2020. A sharp increase occurs in 2021, reaching a peak near 1.39 in the second quarter, indicating a significant improvement in liquid asset coverage excluding inventories. After this peak, the ratio gradually declines through 2023 and 2024, ending close to 0.73. This fluctuation may reflect changes in inventory levels or receivables management impacting near-cash assets.
- Cash Ratio
- The cash ratio remains quite low initially, fluctuating between 0.03 and 0.12 through 2019 and 2020, indicating minimal immediate cash availability relative to current liabilities. In mid-2021, there is a sharp increase to around 0.88, followed by a gradual decline to about 0.24 by late 2024. Despite the mid-period increase suggesting improved cash reserves, the subsequent downward trend points to a reduction in the most liquid assets relative to liabilities in recent quarters.
Overall, the liquidity profile reveals that while there was a period of strengthened short-term financial health around 2021, evidenced by peaks in all three liquidity ratios, more recent periods show a decline across these metrics. This trend indicates a potential tightening of liquidity and a reduced cushion to cover short-term obligations solely through liquid assets.
Current Ratio
Marathon Petroleum Corp., current ratio calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current assets | 25,949) | 31,347) | 31,260) | 32,131) | 36,275) | 32,213) | 32,486) | 35,242) | 35,285) | 42,413) | 36,388) | 30,496) | 34,143) | 38,592) | 30,361) | 28,287) | 26,200) | 14,643) | 15,693) | 20,170) | 19,139) | 18,396) | 18,151) | |||||||
| Current liabilities | 21,068) | 24,000) | 21,787) | 20,150) | 21,735) | 17,466) | 17,057) | 20,020) | 21,314) | 28,437) | 25,120) | 17,898) | 16,898) | 19,512) | 16,085) | 15,663) | 14,246) | 11,504) | 13,569) | 16,147) | 15,339) | 14,890) | 15,147) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Current ratio1 | 1.23 | 1.31 | 1.43 | 1.59 | 1.67 | 1.84 | 1.90 | 1.76 | 1.66 | 1.49 | 1.45 | 1.70 | 2.02 | 1.98 | 1.89 | 1.81 | 1.84 | 1.27 | 1.16 | 1.25 | 1.25 | 1.24 | 1.20 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 1.07 | 1.16 | 1.23 | 1.27 | 1.25 | 1.43 | 1.43 | 1.47 | 1.40 | 1.31 | 1.43 | 1.26 | 1.28 | 1.17 | 1.11 | 1.18 | 1.26 | 1.14 | 1.01 | — | — | — | — | |||||||
| ConocoPhillips | 1.30 | 1.33 | 1.35 | 1.43 | 1.66 | 1.41 | 1.39 | 1.46 | 1.46 | 1.54 | 1.51 | 1.34 | 1.93 | 2.11 | 2.03 | 2.25 | 2.38 | 2.69 | 2.16 | — | — | — | — | |||||||
| Exxon Mobil Corp. | 1.35 | 1.36 | 1.38 | 1.48 | 1.42 | 1.48 | 1.46 | 1.41 | 1.34 | 1.16 | 1.07 | 1.04 | 0.90 | 0.85 | 0.80 | 0.80 | 0.86 | 0.93 | 0.78 | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 1.00 | 1.04 | 0.95 | 0.92 | 0.92 | 1.00 | 1.09 | 1.15 | 1.10 | 1.07 | 1.16 | 1.23 | 1.08 | 1.34 | 1.17 | 1.07 | 1.02 | 0.85 | 1.18 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 25,949 ÷ 21,068 = 1.23
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit a fluctuating trend throughout the quarters under review. Starting at 18,151 million USD in March 2019, the values gradually increased to reach a peak of 38,592 million USD by June 2021. After this peak, the current assets showed a general decline with some intermittent rises, ending at 25,949 million USD in September 2024. Notably, there was a sharp increase between June 2020 and June 2021, indicating a period of asset accumulation, followed by gradual decreases and volatility thereafter.
- Current Liabilities
- Current liabilities also present a variable pattern, beginning at 15,147 million USD in March 2019 and initially declining to a low of 11,504 million USD in June 2020. Subsequently, the liabilities increased substantially, peaking at 28,437 million USD in June 2022. Post this peak, the liabilities showed a downward trend with some fluctuations, ending at 21,068 million USD in September 2024. The spike between late 2020 and mid-2022 suggests increased short-term obligations during this period.
- Current Ratio
- The current ratio, representing liquidity, fluctuated within a moderate range. It started at 1.20 in March 2019, gradually increasing to a high of 2.02 in September 2021, signaling improved short-term financial health. Following this peak, the ratio declined steadily to 1.23 by September 2024, reflecting decreased liquidity. The ratio remained above 1 throughout the entire period, indicating the company consistently maintained current assets exceeding current liabilities, though the margin narrowed in the later quarters.
- Overall Analysis
- The data reveal that current assets and liabilities both experienced significant fluctuations with periods of expansion and contraction. The notable increase in current assets and liabilities during 2020-2022 implies strategic shifts, possibly related to market conditions or operational adjustments. While the current ratio remained above the critical threshold of 1, its decline from peak values suggests a tightening of liquidity toward the end of the period. The combined trends indicate a phase of growth followed by cautious contraction, necessitating continued monitoring of liquidity and working capital management.
Quick Ratio
Marathon Petroleum Corp., quick ratio calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 4,002) | 4,441) | 3,175) | 5,443) | 8,452) | 7,345) | 7,960) | 8,625) | 7,376) | 9,078) | 7,148) | 5,291) | 5,874) | 11,839) | 624) | 415) | 618) | 1,091) | 1,690) | 1,527) | 1,525) | 1,247) | 877) | |||||||
| Short-term investments | 1,141) | 4,058) | 4,399) | 4,781) | 4,604) | 4,109) | 3,492) | 3,145) | 3,759) | 4,241) | 3,449) | 5,548) | 7,352) | 5,418) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Receivables, less allowance for doubtful accounts | 10,180) | 12,307) | 13,171) | 11,619) | 12,469) | 10,274) | 10,143) | 13,477) | 13,458) | 17,305) | 15,661) | 11,034) | 9,511) | 9,771) | 7,468) | 5,760) | 4,911) | 4,361) | 5,583) | 7,872) | 7,461) | 7,603) | 6,893) | |||||||
| Total quick assets | 15,323) | 20,806) | 20,745) | 21,843) | 25,525) | 21,728) | 21,595) | 25,247) | 24,593) | 30,624) | 26,258) | 21,873) | 22,737) | 27,028) | 8,092) | 6,175) | 5,529) | 5,452) | 7,273) | 9,399) | 8,986) | 8,850) | 7,770) | |||||||
| Current liabilities | 21,068) | 24,000) | 21,787) | 20,150) | 21,735) | 17,466) | 17,057) | 20,020) | 21,314) | 28,437) | 25,120) | 17,898) | 16,898) | 19,512) | 16,085) | 15,663) | 14,246) | 11,504) | 13,569) | 16,147) | 15,339) | 14,890) | 15,147) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Quick ratio1 | 0.73 | 0.87 | 0.95 | 1.08 | 1.17 | 1.24 | 1.27 | 1.26 | 1.15 | 1.08 | 1.05 | 1.22 | 1.35 | 1.39 | 0.50 | 0.39 | 0.39 | 0.47 | 0.54 | 0.58 | 0.59 | 0.59 | 0.51 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 0.68 | 0.73 | 0.81 | 0.87 | 0.84 | 0.97 | 1.03 | 1.12 | 1.03 | 1.00 | 1.12 | 0.90 | 0.90 | 0.83 | 0.77 | 0.77 | 0.84 | 0.74 | 0.66 | — | — | — | — | |||||||
| ConocoPhillips | 1.08 | 1.10 | 1.13 | 1.21 | 1.46 | 1.19 | 1.20 | 1.27 | 1.27 | 1.34 | 1.29 | 1.10 | 1.66 | 1.86 | 1.81 | 1.98 | 2.04 | 2.29 | 1.72 | — | — | — | — | |||||||
| Exxon Mobil Corp. | 0.98 | 0.98 | 1.02 | 1.06 | 1.05 | 1.06 | 1.07 | 1.03 | 0.98 | 0.84 | 0.74 | 0.69 | 0.55 | 0.51 | 0.47 | 0.44 | 0.51 | 0.55 | 0.50 | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 0.60 | 0.59 | 0.52 | 0.51 | 0.48 | 0.45 | 0.60 | 0.68 | 0.67 | 0.79 | 0.84 | 0.84 | 0.61 | 0.82 | 0.62 | 0.50 | 0.38 | 0.34 | 0.37 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 15,323 ÷ 21,068 = 0.73
2 Click competitor name to see calculations.
The analysis of liquidity indicators over the examined periods highlights several notable trends.
- Total quick assets
- Total quick assets exhibited fluctuations across the periods. Initially, the values showed moderate increases from $7,770 million at the end of March 2019, peaking at $9,399 million by December 2019. However, a sharp decline occurred in the first half of 2020, with a minimum around $5,452 million in June 2020. This was followed by a recovery phase through 2021, reaching values above $26,000 million by March 2022. Subsequently, total quick assets experienced renewed volatility with a downward trend toward the latest quarter, settling at $15,323 million by September 2024.
- Current liabilities
- Current liabilities demonstrated an upward trend overall, beginning at approximately $15,147 million in March 2019, with minor decreases in the early quarters of 2020. From 2021 onward, liabilities climbed significantly, peaking at around $28,437 million in June 2022. Following this peak, there was a gradual reduction but levels remained elevated compared to the initial periods. Most recent values hovered near $21,068 million by September 2024.
- Quick ratio
- The quick ratio, a measure of short-term liquidity, reflected varying financial strength over the reported quarters. It started below 0.6 in early 2019, suggesting a relatively tight liquidity position. During mid-2020, the ratio dropped further, reaching lows around 0.39, indicating potential liquidity concerns. A marked improvement occurred starting in late 2020, with the quick ratio rising sharply and surpassing 1.0 from March 2021 through early 2023, peaking at values above 1.3. Nevertheless, a downward correction followed, decreasing back below 1.0 by mid-2024 and declining further to approximately 0.73 by September 2024.
Overall, the data reveals an initial period of constrained liquidity in 2019 and early 2020, possibly linked to reduced quick assets and elevated liabilities. This was succeeded by a significant strengthening of the liquidity position during 2021 and early 2022, as quick assets increased and the quick ratio surpassed the critical threshold of 1. However, from mid-2022 onward, both quick assets and the quick ratio declined alongside sustained high current liabilities, signaling a potential tightening of short-term financial flexibility by late 2024.
Cash Ratio
Marathon Petroleum Corp., cash ratio calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 4,002) | 4,441) | 3,175) | 5,443) | 8,452) | 7,345) | 7,960) | 8,625) | 7,376) | 9,078) | 7,148) | 5,291) | 5,874) | 11,839) | 624) | 415) | 618) | 1,091) | 1,690) | 1,527) | 1,525) | 1,247) | 877) | |||||||
| Short-term investments | 1,141) | 4,058) | 4,399) | 4,781) | 4,604) | 4,109) | 3,492) | 3,145) | 3,759) | 4,241) | 3,449) | 5,548) | 7,352) | 5,418) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total cash assets | 5,143) | 8,499) | 7,574) | 10,224) | 13,056) | 11,454) | 11,452) | 11,770) | 11,135) | 13,319) | 10,597) | 10,839) | 13,226) | 17,257) | 624) | 415) | 618) | 1,091) | 1,690) | 1,527) | 1,525) | 1,247) | 877) | |||||||
| Current liabilities | 21,068) | 24,000) | 21,787) | 20,150) | 21,735) | 17,466) | 17,057) | 20,020) | 21,314) | 28,437) | 25,120) | 17,898) | 16,898) | 19,512) | 16,085) | 15,663) | 14,246) | 11,504) | 13,569) | 16,147) | 15,339) | 14,890) | 15,147) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Cash ratio1 | 0.24 | 0.35 | 0.35 | 0.51 | 0.60 | 0.66 | 0.67 | 0.59 | 0.52 | 0.47 | 0.42 | 0.61 | 0.78 | 0.88 | 0.04 | 0.03 | 0.04 | 0.09 | 0.12 | 0.09 | 0.10 | 0.08 | 0.06 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 0.13 | 0.12 | 0.19 | 0.25 | 0.18 | 0.32 | 0.47 | 0.52 | 0.42 | 0.32 | 0.38 | 0.21 | 0.24 | 0.27 | 0.26 | 0.25 | 0.35 | 0.33 | 0.30 | — | — | — | — | |||||||
| ConocoPhillips | 0.63 | 0.58 | 0.60 | 0.66 | 0.91 | 0.71 | 0.75 | 0.72 | 0.74 | 0.67 | 0.61 | 0.55 | 1.14 | 1.31 | 1.18 | 1.46 | 1.58 | 1.92 | 1.35 | — | — | — | — | |||||||
| Exxon Mobil Corp. | 0.39 | 0.37 | 0.46 | 0.48 | 0.46 | 0.48 | 0.49 | 0.43 | 0.41 | 0.24 | 0.15 | 0.12 | 0.08 | 0.06 | 0.06 | 0.08 | 0.16 | 0.22 | 0.18 | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 0.18 | 0.19 | 0.14 | 0.16 | 0.07 | 0.07 | 0.16 | 0.13 | 0.16 | 0.14 | 0.22 | 0.33 | 0.23 | 0.48 | 0.26 | 0.24 | 0.18 | 0.10 | 0.17 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,143 ÷ 21,068 = 0.24
2 Click competitor name to see calculations.
- Cash Assets Trend
- Total cash assets demonstrated a noticeable increase from the beginning of 2019 through 2021, peaking significantly in mid-2021 with a value exceeding US$17 billion. After this peak, cash holdings declined sharply towards the end of 2021 and into early 2022, stabilizing somewhat around US$10 billion to US$13 billion throughout 2022 and early 2023. A further downward trend is observed in mid-2023 through September 2024, with cash assets falling to approximately US$5 billion by the last reported quarter.
- Current Liabilities Trend
- Current liabilities exhibited moderate fluctuations from early 2019 to the end of 2020, ranging between roughly US$11.5 billion and US$16 billion. Beginning in 2021, liabilities rose significantly, frequently exceeding US$20 billion and reaching a high of over US$28 billion in mid-2022. Following this peak, liabilities moderately decreased but remained elevated compared to earlier periods, with amounts consistently above US$17 billion through 2024.
- Cash Ratio Trend
- The cash ratio, calculated as the proportion of cash assets to current liabilities, generally mirrored the movements in cash assets relative to liabilities. Initially low in 2019, it experienced a sharp increase in 2021, reaching a peak ratio close to 0.88 by mid-2021, reflecting improved liquidity. Subsequently, this ratio declined steadily through 2022 and 2023, dropping below 0.3 by late 2024, indicating a marked decrease in liquidity relative to short-term obligations.
- Overall Insights
- The period from 2019 to mid-2021 shows a strengthening liquidity position driven by rising cash reserves and manageable current liabilities. However, from mid-2021 onwards, a reversal occurs with cash assets declining substantially while current liabilities increased or remained elevated, leading to a deterioration in liquidity as evidenced by the falling cash ratio. This pattern suggests growing short-term financial pressure and potentially greater reliance on current liabilities to finance operations or other activities during the later periods. Continuous monitoring of this trend is advisable to assess the company’s ability to meet short-term obligations.