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Marathon Petroleum (Marathon Petroleum) Interest Coverage : 5.75 (As of Dec. 2023)


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What is Marathon Petroleum Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Marathon Petroleum's Operating Income for the three months ended in Dec. 2023 was $1,827 Mil. Marathon Petroleum's Interest Expense for the three months ended in Dec. 2023 was $-318 Mil. Marathon Petroleum's interest coverage for the quarter that ended in Dec. 2023 was 5.75. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Marathon Petroleum's Interest Coverage or its related term are showing as below:

MPC' s Interest Coverage Range Over the Past 10 Years
Min: 2.65   Med: 5.41   Max: 18.64
Current: 9.95


MPC's Interest Coverage is ranked better than
59.66% of 761 companies
in the Oil & Gas industry
Industry Median: 6.71 vs MPC: 9.95

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Marathon Petroleum Interest Coverage Historical Data

The historical data trend for Marathon Petroleum's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Marathon Petroleum Interest Coverage Chart

Marathon Petroleum Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.01 - 2.65 15.87 9.95

Marathon Petroleum Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.57 12.37 8.94 12.77 5.75

Competitive Comparison of Marathon Petroleum's Interest Coverage

For the Oil & Gas Refining & Marketing subindustry, Marathon Petroleum's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Petroleum's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Marathon Petroleum's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Marathon Petroleum's Interest Coverage falls into.



Marathon Petroleum Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Marathon Petroleum's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Marathon Petroleum's Interest Expense was $-1,265 Mil. Its Operating Income was $12,586 Mil. And its Long-Term Debt & Capital Lease Obligation was $26,093 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*12586/-1265
=9.95

Marathon Petroleum's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Marathon Petroleum's Interest Expense was $-318 Mil. Its Operating Income was $1,827 Mil. And its Long-Term Debt & Capital Lease Obligation was $26,093 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*1827/-318
=5.75

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Marathon Petroleum  (NYSE:MPC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Marathon Petroleum Interest Coverage Related Terms

Thank you for viewing the detailed overview of Marathon Petroleum's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Marathon Petroleum (Marathon Petroleum) Business Description

Address
539 South Main Street, Findlay, OH, USA, 45840-3229
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.
Executives
Carl Kristopher Hagedorn officer: Senior VP and Controller C/O CONE MIDSTREAM PARTNERS LP, 1000 CONSOL ENERGY DRIVE, CANONSBURG PA 15317
Rucker Kim K.w. director KRAFT FOODS GROUP, INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
Shawn M Lyon officer: SVP Log & Storage, MPLX GP LLC C/O MPLX, 200 E HARDIN STREET, FINDLAY OH 45840
Gregory Scott Floerke officer: Ex VP & COO, MPLX GP LLC C/O MARKWEST ENERGY PARTNERS, L.P., 1515 ARAPAHOE STREET, TOWER 1, SUITE 160, DENVER CO 80202
Timothy J Aydt officer: Ex VP and CCO, MPLX GP LLC C/O MPLX LP, 200 E. HARDIN STREET, FINDLAY OH 45840
Toni Townes-whitley director 8340 SPRINGHAVEN GARDEN LANE, MCLEAN, VA X1 22102
Michael J Hennigan officer: President & CEO, MPLX GP LLC 3807 WEST CHESTER PIKE, NEWTOWN SQUARE PA 19073
Suzanne Gagle officer: VP and General Counsel C/O MPC, FINDLAY OH 45840
Thomas Kaczynski officer: VP, Finance and Treasurer C/O MARATHON PETROLEUM CORPORATION, FINDLAY OH 45840
Raymond L Brooks officer: Sr. VP, Refining C/O MPC, FINDLAY OH 45840
Charles E Bunch director PPG INDUSTRIES INC., ONE PPG PLACE, PITTSBURGH PA 15272
Brian C Davis officer: Exec VP, Chief Commercial Ofc C/O MARATHON PETROLEUM CORPORATION, 539 S. MAIN STREET, FINDLAY OH 45840
Maryann T. Mannen officer: Exec VP & Chief Fin Ofc C/O MARATHON PETROLEUM CORPORATION, 539 SOUTH MAIN ST, FINDLAY OH 45840
Jonathan Z Cohen director 1845 WALNUT STREET, 10TH FLOOR, PHILADELPHIA PA 19103
James E Rohr director 249 FIFTH AVE, P1-POPP-30-1, PITTSBURGH PA 15222

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