Ratio Analysis

Fin 201
Section: 06
Group Name: Number Crunchers
Submission Date: 4th January 2021
MPLX is a large-cap master limited partnership formed by
Marathon Petroleum Corporation (MPC) that owns and
manages midstream Energy infrastructure and logistics
 
resources and provides fuel distribution services. MPLX's
assets include a network of crude oil and refined product
pipelines. The company also owns crude oil and natural
gas collection systems and pipelines, as well as natural
gas and natural gas liquids(NGL)processing and
fractionation facilities in the main supply basins of the
 Profitability Ratio
Profitability Ratio allow us to measure the ability of MPLX
LP company earn a suitable return on sale or profit margin,
total assets and return on equity.

Profit Margin (Return on Sale): It is measuring how much

profit does a company makes in a financial year after
paying the cost of goods sold and other expenses.

Return on Assets: It indicates how the MPLX LP

company is successfully managing its resources in
financial year.

Return on Equity: It measures the profitability of the

Asset Utilization Ratio
It measures of how many times MPLX LP company sells its inventory or collects all its accounts receivable per year. For the
long-term, the utilization ratio tells us how productive the fixed assets are in terms of sales production.

Account Receivable Turnover: It’s measures MPLX LP company’s efficiency in congregation its money from customer in a
timely manner.

Average Collection Period: It shows us an average number of days MPLX LP company needs to turn its receivable into cash.

Inventory Turnover: It tell us how MPLX LP company use their inventory effectively.

Fixed Asset Turnover: It tell us how MPLX LP company use their asset effectively and increase their sales.
Total Asset Turnover: It tell us how MPLX LP company use their asset effectively and increase their sales
 Liquidity Ratio
It measures MPLX LP company’s ability to repay both short term and long-term debts is calculated by the
liquidity ratio.

Current Ratio: It measures MPLX LP company’s ability to pay off its short-term debt.

Quick Ratio: It measures by including all current assets and excluding inventory.
 Debt Utilization Ratio
The debt utilization ratio determines the position of the MPLX LP company’s overall debt in
light of its asset base and earning capacity. If MPLX LP company has higher debt compared to
its assets, then Its at risk.

Total Debt to Total Assets: It measures of assets financed by the creditors instead of
investor.

Times Interest Earned: It measures the MPLX LP company is capable of assemblies its debts

responsibilities.
Pioneer Natural Resources Company is a company engaged in
hydrocarbon exploration in the Cline Shale, which is part of the
Spraberry Trend of the Permian Basin, where the company is the
largest acreage holder. The company is organized in Delaware and
headquartered in Irving, Texas. The company is ranked 333rd on the
Fortune 500.
Ratio Analysis For Pioneer Natural Resources
Profitability Ratio

Ratio 2019 2018

Profit 7.79 10.37

Marfin

Return 3.95 5.43

On
Asset

Return 6.21 8.03

on
Equity
Asset Utilization Ratio
Ratio 2019 2018

Receivable 9.34 11.52

Turnover

Average 38.53 31.24

Collection
Period

Inventory 47.18 38.76

Turnover

Fixed Asset 0.57 0.61

Turnover

Total Asset 0.51 0.52

Turnover
 Liquidity & Debt Utilization Ratios

Ratios 2019 2018

Current 0.88 1.42

Ratio

Quick Ratio 0.80 1.29

Debt 13.6 12.76

Utilization
Ratio
Halliburton Company is a world leader in energy services, as well as
engineering and construction, it is an American Multinational Company The
company has two main business segments: the Energy Group, which offers a
broad range of services and products used in the exploration, development,
and production of oil and gas; and the Engineering and Construction group,
which designs and constructs major projects, including chemical plants,
refineries, and paper mills
Profitbility Ratio

Profit Net 5% 7%
margin Income/sal
es

Return on Net Income 4% 6%

asset /Total Asset

Return on Net 14% 18%

equity Income/sto
ckholder's
equity
Asset Utilization Ratio

Profit margin Net Income/sales 5% 7%

Return on asset Net Income /Total Asset 4% 6%
Return on equity Net Income/stockholder's 14% 18%
equity
Liquidity Ratio

ratio 2018 2019

Current ratio 2.29 2.32

Quick ratio 1.65 1.69

Debt Utilization Ratio
Ratio 2018 2019

Debt to total asset 44% 40%

Time interest 1.97 3.37

earned
Tenaris S.A. is a global manufacturer and supplier of steel pipes and related services, primarily for the
energy industry with nearly 23,000 employees around the world. It is a majority-owned subsidiary company
of the Techint Group, which has interests in steel, energy, engineering and construction and industrial
equipment.
Profitability Ratio
Asset Utilization Ratios
Liquidity Ratio
Debt Utilization Ratio
Debt Utilization Ratio
 Targa is a leading provider of midstream services and is one of the
largest independent midstream energy companies in North America.
Profitability Ratio

Ratio 2019 2018

Profit -3.85 -1.14

Margin

Return -1.78 -0.70

On
Asset

Return -3.83 -1.60

On
Equity
 Asset Utilization Ratio

Ratio 2019 2018

Receivable turnover 10.1416 12.1132

4 3
Inventory turnover 53.6910 63.6551
2 3
Fixed asset turnover 0.50540 0.67554
3 6
Total asset turnover 0.46085 0.61895
9 6
 Liquidity Ratio

Ratio 2019 2018

Current ratio 0.88556 0.50696

7
Quick ratio 0.79931 0.44812
6 1
Debt to total assets 41.8259 39.32118
8
 • An American energy company.

•It is organized in Delaware and headquartered in Houston.

•The company is ranked 411th on the Fortune 500 companies.

Profitability Ratio
Asset utilization Ratio
Liquidity & Debt Utilisation Ratio
Thank You