Gross Margin % is calculated as gross profit divided by its revenue. Marathon Oil's Gross Profit for the
three
months ended in Dec. 2023 was $613 Mil. Marathon Oil's Revenue for the
three
months ended in Dec. 2023 was $1,585 Mil. Therefore, Marathon Oil's Gross Margin % for the quarter that ended in Dec. 2023 was 38.68%.
The historical rank and industry rank for Marathon Oil's Gross Margin % or its related term are showing as below:
MRO'
s Gross Margin % Range Over the Past 10 Years
Min: -11.95 Med: 27.95 Max: 57.88
Current: 41.81
During the past 13 years, the highestGross Margin % of Marathon Oil was 57.88%. The lowest was -11.95%. And the median was 27.95%.
MRO's Gross Margin % is ranked better than 66.2% of 923
companies
in the Oil & Gas industry
Industry Median: 27.87
vs MRO: 41.81
Marathon Oil had a gross margin of 38.68% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Marathon Oil was 0.00% per year.
Marathon Oil Gross Margin % Historical Data
The historical data trend for Marathon Oil's Gross Margin % 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 Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution
For the Oil & Gas industry and Energy sector, Marathon Oil's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Marathon Oil's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Marathon Oil had a gross margin of 38.68% for the quarter that ended in Dec. 2023 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Marathon Oil Gross Margin % Related Terms
Thank you for viewing the detailed overview of Marathon Oil's Gross Margin % 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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