Question
Here is Marathon Oils Balance Sheet: $ Millions December 31, 2021 December 31, 2020 Current Assets Cash and Equivalents 580 742 Receivables 1,142 747 Inventories
Here is Marathon Oils Balance Sheet:
$ Millions | December 31, 2021 | December 31, 2020 |
Current Assets | ||
Cash and Equivalents | 580 | 742 |
Receivables | 1,142 | 747 |
Inventories | 77 | 76 |
Other current assets | 22 | 47 |
Total current assets | 1,821 | 1,612 |
Equity method investments | 450 | 447 |
Property, plant, and equipment less | 14,499 | 15,638 |
Depreciation | ||
Other noncurrent assets | 224 | 259 |
Total assets | 16,994 | 17,956 |
Liabilities | ||
Current Liabilities | ||
Accounts payable | 1,110 | 837 |
Payroll and benefits payable | 74 | 57 |
Accrued taxes | 157 | 72 |
Other current liabilities | 260 | 247 |
Long-term Debt Due within One Year | 36 | |
Total Current Liabilities | 1,637 | 1,213 |
Long-term Debt | 3,978 | 5,404 |
Deferred Tax Liabilities | 136 | 163 |
Defined Benefit Postretirement Plan Obligations | 137 | 180 |
Asset Retirement Obligations | 288 | 241 |
Deferred Credits and Other Liabilities | 132 | 194 |
Total Liabilities | 6,308 | 7,395 |
Stockholders Equity | ||
Preferred Stock No share issued or outstanding | ||
Common Stock: | ||
Issued 937 million shares (par value $1 per share, 1.925 billion shares authorized at December 31, 2021 and December 31, 2020) | 937 | 937 |
Held in Treasury, at cost 194 million shares and 148 million shares | 4,825 | 4,098 |
Additional Paid-in Capital | 7,221 | 7,174 |
Retained Earnings | 7,271 | 6,466 |
Accumulated Other Comprehensive Income | 82 | 73 |
Total Stockholders Equity | 16,686 | 10,561 |
Total Liabilities and Stockholders Equity | 16,994 | 17,956 |
Here is Marathon Oils Income Statement for the Year Ended December 31:
$ Millions, except per share data | 2021 | 2020 | 2019 |
Revenues and Other Income | |||
Revenues from Contracts with Customers | 5,601 | 3,097 | 5,063 |
Net Gain (Loss) on Commodity Derivatives | 383 | 116 | 72 |
Income (Loss) from Equity Method Investments | 253 | 161 | 87 |
Net Gain (Loss) on Disposal of Assets | 19 | 9 | 50 |
Other Income | 15 | 25 | 62 |
Total Revenues and Other Income | 5,467 | 3,086 | 5,190 |
Costs and Expenses: | |||
Production | 534 | 555 | 712 |
Shipping, Handling, and Other Operating | 727 | 596 | 605 |
Exploration | 136 | 181 | 149 |
Depreciation, Depletion, and Amortization | 2,066 | 2,316 | 2,397 |
Impairments | 60 | 144 | 24 |
Taxes Other than Income | 345 | 200 | 311 |
General and Administrative | 291 | 274 | 356 |
Total Costs and Expenses | 4,159 | 4,266 | 4,554 |
Income (Loss) from Operations | 1,308 | 1,180 | 636 |
Net Interest and Other | 188 | 256 | 244 |
Other Net Periodic Benefit (Costs) Credits | 5 | 1 | 3 |
Loss on Early Extinguishment of Debt | 121 | 28 | 3 |
Income (Loss) Before Income Taxes | 1,004 | 1,465 | 392 |
Provision (Benefit) for Income taxes | 58 | 14 | 88 |
Net Income (Loss) | 946 | 1,451 | 480 |
(a) What does the Quick Ratio tell you about the financial position of Marathon Oil? Show your work. (b) What does the Total Debt Ratio tell you about the financial position of Marathon Oil? How has that changed from 2020? Show your work. (c) What does the Return on Assets tell you about the financial and operational position of Marathon Oil? How has that changed from 2020 to 2021? Show your work. (d) What does the Return on Equity tell you about the financial and operational position of Marathon Oil? How has that changed from 2020 to 2021? Show your work.
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