Marathon Oil’s Gross Profit Margins Trending Lower along with Crude Prices



Marathon Oil’s gross profit margin

In 2Q16, Marathon Oil (MRO) reported an adjusted gross profit margin of ~2%, which lower than its 2Q15 gross profit margin of ~15%.

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Gross profit margin trend

Since 3Q14, Marathon Oil’s adjusted gross profit margins are trending lower due to declining crude oil (USO) prices. In 1Q16, Marathon Oil reported its lowest adjusted gross profit margin since 1990 of about -21%.

Other upstream stocks

Due to the steep downward trend in energy prices, most S&P 500 (SPY) energy companies have reported lower year-over-year adjusted gross profit margins. Devon Energy (DVN), Encana (ECA), and ConocoPhillips (COP) reported ~7%, ~12%, and -11% adjusted gross profit margins, respectively, in 2Q16.

Now let’s discuss Marathon Oil’s debt.


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