Marathon Petroleum Corp. (NYSE:MPC)

Debt to Equity Ratio

The debt to equity ratio exhibits an initial steady level around 0.83 to 0.86 through 2019, followed by a notable spike to approximately 1.31-1.42 during 2020, indicating increased leverage. This ratio then fluctuates moderately near 1.0 in 2021 and 2022, before showing a rising trend again in 2023 and 2024, reaching as high as 1.49 by September 2024. This pattern suggests periods of enhanced borrowing relative to shareholder equity, particularly during and after 2020.

Debt to Equity Ratio (Including Operating Lease Liability)

This adjusted ratio mirrors the overall trend of the standard debt to equity ratio but maintains consistently higher values by roughly 0.08-0.1, reflecting the impact of including operating lease liabilities. The ratio rises sharply from under 1.0 in 2019 to peaks around 1.42-1.49 in 2020, dips near 1.0-1.1 in 2021-2022, and then increases steadily reaching 1.55 by late 2024, underscoring similar leverage dynamics with lease obligations considered.

Debt to Capital Ratio

The debt to capital ratio remains fairly stable within a range of 0.45 to 0.46 in 2019 before climbing to approximately 0.57-0.60 in 2020, consistent with increased debt use during that period. Subsequently, it decreases slightly to around 0.49-0.50 in 2021 and 2022, and then gradually rises again to about 0.60 by the third quarter of 2024, indicating a gradual increase in the proportion of debt financing within total capital over recent quarters.

Debt to Capital Ratio (Including Operating Lease Liability)

This ratio closely parallels the standard debt to capital but registers marginally higher values due to operating lease liabilities. It trends upward from about 0.48 in 2019 to near 0.59-0.60 in 2020, then moderates around 0.50-0.52 through 2021 and 2022 before climbing again to 0.61 by late 2024. This pattern confirms a consistent degree of leverage with lease obligations factored into capital structure.

Debt to Assets Ratio

The debt to assets ratio holds steady around 0.29 throughout 2019, rises substantially to approximately 0.37-0.38 in 2020, suggesting greater debt funding relative to total assets. It returns near 0.30 by 2021 and 2022, then gradually ascends to 0.35 by late 2024. This indicates an overall increase in indebtedness relative to asset base in the more recent periods after some stabilization.

Debt to Assets Ratio (Including Operating Lease Liability)

This variant stays consistently about 0.03 higher than the standard debt to assets ratio, reflecting operating lease obligations. The ratio increases from 0.32 in 2019 to around 0.40-0.41 in 2020, moderates in 2021-2022 near 0.31, and then trends upward, reaching 0.37 by the third quarter of 2024, aligning with broader leverage increases.

Financial Leverage Ratio

The financial leverage ratio follows a pattern consistent with other leverage measures. It is stable near 2.83-2.93 in 2019, rises substantially to around 3.56-3.84 in 2020, peaks near 4.01 at the beginning of 2021, declines somewhat through 2022 to values near 3.24, and then ascends again to 4.22 by late 2024. This suggests varying degrees of asset-to-equity magnification by debt, reflecting changes in the capital structure and the company’s exposure to debt influences over the observed period.

The financial data reveals several notable trends concerning the company’s total debt, stockholders’ equity, and debt-to-equity ratio over the periods observed.

Total Debt

Total debt showed a general increasing trend from March 2019 through March 2024, with fluctuations along the timeline. It rose from 28,115 million USD in March 2019 to a peak near 32,480 million USD around March 2021, then declined to around 25,539 million USD by December 2021. Subsequently, the debt level rose again and stabilized, ranging from approximately 27,200 to 29,000 million USD between March 2022 and June 2024.

Total Stockholders’ Equity

Equity exhibited a declining trend from March 2019 through March 2020, dropping steeply from approximately 33,951 million USD to 24,088 million USD. Following this sharp decline, equity remained relatively volatile with temporary recoveries, increasing to nearly 28,921 million USD by March 2021. The trend reversed again with a gradual decline until March 2024, where equity reached around 18,933 million USD, the lowest in the period.

Debt to Equity Ratio

The debt-to-equity ratio rose significantly from around 0.83 in March 2019 to a high of 1.50 in March 2021, indicating a growing leverage and a comparatively higher debt burden relative to equity. Following March 2021, the ratio experienced a decline to about 0.96 by December 2022, suggesting some deleveraging or equity recovery during that period. However, starting in late 2022, the ratio trended upward again, reaching 1.49 by September 2024, indicating increasing leverage consistent with the declining equity and stable to increasing debt levels.

In summary, the company's leverage increased notably during the early 2020 period, coinciding with a significant reduction in equity. While debt levels displayed some fluctuations, stockholders’ equity generally diminished over time, contributing to higher leverage ratios. The increase in debt-to-equity ratio towards the end of the period suggests elevated financial risk due to higher relative indebtedness.

The analysis of the financial data over the quarters reveals distinct trends in the company's debt, equity, and leverage ratio.

Total Debt (including operating lease liability)

The total debt showed a gradual increase from Q1 2019 through Q1 2020, peaking at 34,641 million US dollars in Q2 2020. Thereafter, it generally declined through 2021, reaching a low of 26,904 million US dollars in Q4 2021. From 2022 onwards, total debt remained relatively stable around the 27,000 to 29,000 million US dollars range until Q1 2023, after which it experienced a moderate increase, reaching 30,111 million US dollars at Q2 2024. The latest quarter indicated a slight decrease again to 29,396 million US dollars. This pattern reflects significant debt accumulation in mid-2020, followed by a period of deleveraging and stabilization, and some modest borrowing late in the period analyzed.

Total MPC Stockholders’ Equity

Stockholders’ equity experienced a strong decline beginning in early 2020, falling sharply from around 33,694 million US dollars at the end of 2019 to 22,199 million US dollars by Q4 2020. A partial recovery occurred during 2021, with equity rebounding to approximately 28,280 million US dollars by Q2 2021, though it declined again by the end of 2021. Throughout 2022, equity saw some recovery, peaking at 27,715 million US dollars in Q4 2022, but this was followed by a consistent decline through 2023 and into mid-2024, reaching the lowest point of 18,933 million US dollars in Q3 2024. The trend indicates equity was under considerable pressure beginning in 2020, with some intermittent improvements; however, overall equity levels showed a downward trajectory in later periods.

Debt to Equity Ratio (including operating lease liability)

The leverage ratio demonstrated notable volatility. From Q1 2019 to Q4 2019, the ratio was below 1, indicating more equity than debt. Starting in Q1 2020, the ratio increased sharply, peaking near 1.57 by Q1 2021, reflecting greater leverage as debt rose and equity declined. Subsequently, the ratio moderated to just above 1 through 2021 and most of 2022, coinciding with debt reduction and some equity recovery. From early 2023, the ratio climbed again, reaching 1.55 by Q3 2024, suggesting increasing leverage primarily driven by the decline in equity alongside stable or slightly rising debt. This pattern suggests an initial period of increasing financial risk followed by temporary stabilization and a recent upward trend in leverage.

Total Debt

The total debt exhibited a general increasing trend from March 31, 2019, to March 31, 2020, rising from approximately $28.1 billion to $31.6 billion. This was followed by a moderate fluctuation, with debt levels peaking again at the start of 2022 near $26.7 billion and remaining relatively stable around $27 billion through the end of 2023. However, notable increases were observed again in mid-2024, with total debt rising to nearly $28.9 billion in June 2024 before slightly decreasing to about $28.2 billion by September 2024.

Total Capital

Total capital started at over $62 billion in early 2019 and generally declined to approximately $55.7 billion by December 2020. It showed variability during 2021 and early 2022, fluctuating between $50.7 billion and $53 billion. From mid-2022 onward, the trend was mostly downward, decreasing steadily to under $47.2 billion by September 2024. This suggests a contraction in overall capital base over the recent periods.

Debt to Capital Ratio

The debt to capital ratio indicated a rising leverage pattern from 0.45 in early 2019 to 0.59 by the end of 2020, marking an increase in the reliance on debt financing relative to total capital. The ratio briefly retreated to about 0.49 in 2021, representing a temporary reduction in leverage. Subsequently, the ratio increased again, reaching 0.6 by late 2024, suggesting a return to higher leverage levels consistent with rising debt and decreasing total capital. The periodic fluctuations demonstrate shifts in the company’s capital structure, with a general trend towards increased leverage over the full time horizon.

The financial data reveals notable trends in the capital structure and debt levels over the given periods.

Total Debt (including operating lease liability)

The total debt gradually increased from US$30,881 million in March 2019 to a peak of US$34,188 million in March 2020, indicating a rise in leverage during that time. Following this peak, there was a general decline in debt levels throughout 2020 and 2021, reaching a low of US$26,904 million in December 2021. Beginning in early 2022, total debt levels started to rise again, fluctuating around the US$28,000 to US$30,000 million range, with a slight decrease to US$29,396 million in September 2024. This pattern suggests a period of increased borrowing in early 2020, subsequent deleveraging, and then moderate re-leveraging in recent years.

Total Capital (including operating lease liability)

Total capital experienced a decline from US$64,832 million in March 2019 to US$55,554 million in March 2021, implying a reduction in the company’s overall capitalization base during this period. After March 2021, total capital showed a mixed trend with some periods of increase and decrease, but the overall trajectory was downward, reaching US$48,329 million by September 2024. This decreasing trend in total capital, alongside fluctuations in debt levels, suggests potential changes in equity or asset base composition affecting the capital structure.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio started at 0.48 in early 2019 and increased substantially to around 0.59-0.60 by the end of 2020. This reflects a higher proportion of debt in the company’s capital structure during that period. Following this peak, the ratio declined back to approximately 0.50 by late 2021, indicating a relative reduction in leverage. From 2022 onwards, the ratio fluctuated between 0.50 and 0.61, with an upward tendency towards 0.61 by September 2024. This signals a trend of increasing leverage in recent quarters, consistent with the observed rise in total debt relative to declining total capital.

Total Debt

The total debt level initially increased gradually from $28,115 million at the end of Q1 2019 to a peak around $32,166 million in Q2 2020. After this peak, total debt showed a downward trend reaching approximately $25,539 million by Q4 2021. From Q1 2022 onwards, the total debt mostly stabilized within a range between approximately $26,700 million and $29,000 million, ending near $28,220 million by Q3 2024.

Total Assets

Total assets exhibited some fluctuation over the periods shown. Starting around $96,436 million in Q1 2019, assets declined to a low near $84,000 million by late 2020. In 2021, a recovery phase was evident, with assets rising again to about $96,737 million by Q2 2022. However, post mid-2022, total assets generally trended downward, declining steadily to approximately $79,833 million by Q3 2024.

Debt to Assets Ratio

The debt-to-assets ratio reflected the fluctuations in debt and asset levels. In the earlier period through 2019, the ratio remained stable around 0.29. There was a pronounced increase in 2020, peaking around 0.38, indicating higher leverage consistent with the increased debt and reduced asset base. Subsequently, leverage ratios improved through 2021 and early 2022, moving back down near 0.29. However, starting mid-2022 and continuing through 2024, the ratio showed a gradual increasing trend, rising from about 0.29 to 0.35 by Q3 2024, signaling a relative increase in leverage over that time frame.

Summary of Trends

The data demonstrates a period of increased borrowing and reduced asset base in 2020, likely reflecting strategic or market-driven adjustments. The following recovery in asset base through 2021 corresponded with deleveraging efforts. The recent trend from mid-2022 onward indicates some rising leverage due to asset reductions outpacing changes in debt, which may warrant monitoring. Overall, the company’s financial structure fluctuated considerably within the period, with signs of active management of both debt and assets in response to market conditions.

Total Debt (including operating lease liability)

Over the observed period, total debt demonstrated moderate fluctuations. Initial values in early 2019 hovered around 30.8 billion US dollars, increasing somewhat to peak near 34.2 billion in the first half of 2020. Subsequently, there was a gradual reduction in debt to a low of approximately 26.9 billion at the end of 2021. Following this trough, total debt resumed a modest upward trend, stabilizing around the 28 to 29 billion range through 2022 and early 2023, with a slight increase toward mid-2024, nearing 30.1 billion before slightly retreating by late 2024.

Total Assets

Total assets exhibited variability over the timeframe examined. Starting from about 96.4 billion US dollars in early 2019, asset levels initially remained relatively stable until the end of 2019. However, a significant decline occurred entering 2020, reaching a low in mid-2020 around 84 billion. Asset values partially recovered through 2021 and early 2022, approaching 96.7 billion at one point. Despite this recovery, total assets declined again in the latter part of 2022 and into 2023, reaching approximately 85 billion by late 2024, indicating an overall downward trend in asset base toward the end of the period.

Debt to Assets Ratio (including operating lease liability)

The debt-to-assets ratio reflected changes in both debt and asset figures, with a notable increase from 0.32 in early 2019 to a peak of 0.41 in mid-2020. This rise corresponds with the period when total debt increased and total assets declined sharply, suggesting higher leverage during this period. After mid-2020, the ratio decreased steadily, dropping back to near 0.31 by early 2022, indicating deleveraging or improved asset base relative to debt. However, post-2022, the ratio began rising again, reaching 0.37 by the third quarter of 2024, reflecting a relative increase in leverage, possibly due to declining assets combined with relatively stable or slightly increased debt levels.

Overall Trends and Insights

The data reveals a cyclical pattern characterized by increased leverage during the economic stresses apparent in 2020, as total debt rose amid declining assets. This was followed by a phase of deleveraging and asset recovery throughout 2021 and early 2022. Most recently, the company's leverage ratio has trended upward, driven by diminishing assets in conjunction with stable or marginally increased debt obligations. These shifts suggest responsiveness to external economic conditions, with leverage management fluctuating accordingly. The declining asset base in later periods could warrant further review to understand underlying causes, while the recent increase in leverage may imply emerging financial risk factors.

Total assets

Total assets demonstrated a fluctuating pattern over the examined periods. Initially, total assets slightly increased from approximately $96.4 billion in March 2019 to a peak near $98.6 billion by the end of 2019. This was followed by a notable decline throughout 2020, bottoming out around $84.0 billion to $85.0 billion. Starting in 2021, total assets showed a partial recovery, rising again to the mid-$90 billion range by mid-2022. However, from the latter part of 2022 onward, total assets steadily declined, reaching approximately $79.8 billion by September 2024, marking the lowest level in the observed period. Overall, asset levels experienced volatility with a downward trend in recent quarters.

Total MPC stockholders’ equity

Stockholders’ equity followed a predominantly declining trend over the years presented. It started near $34.0 billion in early 2019, then decreased sharply in 2020 to around $22.2 billion by year-end, reflecting substantial equity reduction during that period. A partial rebound was observed in 2021, where equity rose back to over $28.0 billion in mid-2021 before dropping again towards the end of the year and continuing fluctuating around the $24.0 to $27.0 billion range throughout 2022 and early 2023. From mid-2023 through 2024, equity consistently declined, reaching roughly $18.9 billion by September 2024. The trend indicates ongoing pressure on equity levels, particularly pronounced during the 2020 downturn and the recent periods.

Financial leverage

Financial leverage, defined as the ratio of total assets to stockholders’ equity, showed considerable variation consistent with changes in assets and equity. Starting near 2.8 to 2.9 in early 2019, leverage increased markedly during 2020, peaking above 3.8 at the end of that year, reflecting reduced equity and asset contraction. In 2021, leverage decreased to roughly 3.2 to 3.3, coinciding with the partial equity recovery. However, beginning in 2022 through 2024, leverage ratios steadily increased, rising from around 3.4 to over 4.2 by September 2024. This rising leverage trend suggests increasing reliance on liabilities relative to equity and potentially higher financial risk exposure over recent periods.