Marathon Petroleum Operating Margin vs. Net Income
| MPC Stock | USD 176.19 0.45 0.26% |
Marathon Petroleum Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.12 | 0.0769 |
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For Marathon Petroleum profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Marathon Petroleum to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Marathon Petroleum Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Marathon Petroleum's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Marathon Petroleum Corp over time as well as its relative position and ranking within its peers.
Marathon Petroleum's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Marathon Petroleum Revenue Breakdown by Earning Segment
By analyzing Marathon Petroleum's earnings estimates, investors can diagnose different trends across Marathon Petroleum's analyst sentiment over time as well as compare current estimates against different timeframes.
Will Oil & Gas Refining & Marketing sector continue expanding? Could Marathon diversify its offerings? Factors like these will boost the valuation of Marathon Petroleum. Expected growth trajectory for Marathon significantly influences the price investors are willing to assign. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Marathon Petroleum data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 1.412 | Dividend Share 3.73 | Earnings Share 9.4 | Revenue Per Share | Quarterly Revenue Growth (0.01) |
The market value of Marathon Petroleum Corp is measured differently than its book value, which is the value of Marathon that is recorded on the company's balance sheet. Investors also form their own opinion of Marathon Petroleum's value that differs from its market value or its book value, called intrinsic value, which is Marathon Petroleum's true underlying value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Because Marathon Petroleum's market value can be influenced by many factors that don't directly affect Marathon Petroleum's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Understanding that Marathon Petroleum's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Marathon Petroleum represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Meanwhile, Marathon Petroleum's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.
Marathon Petroleum Corp Net Income vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Marathon Petroleum's current stock value. Our valuation model uses many indicators to compare Marathon Petroleum value to that of its competitors to determine the firm's financial worth. Marathon Petroleum Corp is rated below average in operating margin category among its peers. It is regarded fifth in net income category among its peers making up about 101,951,710,262 of Net Income per Operating Margin. At present, Marathon Petroleum's Operating Profit Margin is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Marathon Petroleum's earnings, one of the primary drivers of an investment's value.Marathon Net Income vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Marathon Petroleum |
| = | 0.05 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Marathon Petroleum |
| = | 5.07 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Marathon Net Income Comparison
Marathon Petroleum is currently under evaluation in net income category among its peers.
Marathon Petroleum Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Marathon Petroleum, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Marathon Petroleum will eventually generate negative long term returns. The profitability progress is the general direction of Marathon Petroleum's change in net profit over the period of time. It can combine multiple indicators of Marathon Petroleum, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -131.1 M | -137.7 M | |
| Operating Income | 6 B | 4.6 B | |
| Income Before Tax | 6.9 B | 4.3 B | |
| Total Other Income Expense Net | 638.1 M | 670 M | |
| Net Income | 5.8 B | 3.7 B | |
| Income Tax Expense | 1 B | 1 B | |
| Net Income Applicable To Common Shares | 4 B | 3.6 B | |
| Net Income From Continuing Ops | 5.8 B | 4 B | |
| Non Operating Income Net Other | -161.1 M | -153 M | |
| Interest Income | 580.8 M | 585.8 M | |
| Net Interest Income | -755.1 M | -792.9 M | |
| Change To Netincome | -1.3 B | -1.2 B | |
| Net Income Per Share | 9.09 | 4.95 | |
| Income Quality | 1.97 | 1.96 | |
| Net Income Per E B T | 0.52 | 0.69 |
Marathon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Marathon Petroleum. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Marathon Petroleum position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Marathon Petroleum's important profitability drivers and their relationship over time.
Marathon Petroleum Earnings per Share Projection vs Actual
Use Marathon Petroleum in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Marathon Petroleum position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Marathon Petroleum will appreciate offsetting losses from the drop in the long position's value.Marathon Petroleum Pair Trading
Marathon Petroleum Corp Pair Trading Analysis
The ability to find closely correlated positions to Marathon Petroleum could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Marathon Petroleum when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Marathon Petroleum - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Marathon Petroleum Corp to buy it.
The correlation of Marathon Petroleum is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Marathon Petroleum moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Marathon Petroleum Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Marathon Petroleum can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Marathon Petroleum position
In addition to having Marathon Petroleum in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Correlation Analysis. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
To fully project Marathon Petroleum's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Marathon Petroleum Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Marathon Petroleum's income statement, its balance sheet, and the statement of cash flows.