Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Marathon Oil's annualized net income for the quarter that ended in Dec. 2023 was $1,588 Mil. Marathon Oil's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $11,216 Mil. Therefore, Marathon Oil's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 14.16%.
The historical rank and industry rank for Marathon Oil's Return-on-Tangible-Equity or its related term are showing as below:
MRO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -39.44 Med: 6.45 Max: 32.71
Current: 13.76
During the past 13 years, Marathon Oil's highest Return-on-Tangible-Equity was 32.71%. The lowest was -39.44%. And the median was 6.45%.
MRO's Return-on-Tangible-Equity is ranked better than 61.75% of 1004
companies
in the Oil & Gas industry
Industry Median: 9.02
vs MRO: 13.76
Marathon Oil Return-on-Tangible-Equity Historical Data
The historical data trend for Marathon Oil's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas E&P subindustry, Marathon Oil's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Marathon Oil Return-on-Tangible-Equity Distribution
For the Oil & Gas industry and Energy sector, Marathon Oil's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Marathon Oil's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Marathon Oil Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Marathon Oil's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Marathon is an independent exploration and production company primarily focusing on unconventional resources in the United States. At the end of 2022, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 343 thousand barrels of oil equivalent per day in 2022 at a ratio of 70% oil and NGLs and 30% natural gas.
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