Marathon Petroleum (WBO:MPC) ROCE % : 15.36% (As of Dec. 2023)

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What is Marathon Petroleum ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Marathon Petroleum's annualized ROCE % for the quarter that ended in Dec. 2023 was 15.36%.

Marathon Petroleum ROCE % Historical Data

The historical data trend for Marathon Petroleum's ROCE % 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.

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Marathon Petroleum ROCE % Chart

Marathon Petroleum Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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5.60

-15.46

6.19

32.54

22.14

Marathon Petroleum Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															27.17	24.00	19.91	29.11	15.36

Marathon Petroleum ROCE % Calculation

Marathon Petroleum's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	13987.918	/	( ( (84869.376 - 18898.88)	+	(78850.079 - 18477.55) )	/ 2 )
	=	13987.918	/	( (65970.496	+	60372.529)	/ 2 )
	=	13987.918	/	63171.5125
	=	22.14 %

Marathon Petroleum's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	9544.136	/	( ( (84300.953 - 20365.695)	+	(78850.079 - 18477.55) )	/ 2 )
	=	9544.136	/	( ( 63935.258	+	60372.529 )	/ 2 )
	=	9544.136	/	62153.8935
	=	15.36 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Marathon Petroleum (WBO:MPC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Marathon Petroleum ROCE % Related Terms

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Marathon Petroleum (WBO:MPC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Marathon Petroleum Corp (WBO:MPC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

MPC:USA MPC:Mexico MPN:Germany M1PC34:Brazil

Address

539 South Main Street, Findlay, OH, USA, 45840-3229

Website

https://www.marathonpetroleum.com

Marathon Petroleum is an independent refiner with 13 refineries in the midcontinent, West Coast, and Gulf Coast of the United States with total throughput capacity of 2.9 million barrels per day. Its Dickinson, North Dakota, facility produces 184 million gallons a year of renewable diesel. Its Martinez, California, facility will have the ability to produce 730 million gallons a year of renewable diesel once converted. The firm also owns and operates midstream assets primarily through its listed master limited partnership, MPLX.