Fin 571 Week 3

In: Business and Management

Submitted By renaetj3
Words 990
Pages 4
Interpreting Financial Results
FIN/571 – Foundations of Corporate finance
February 4, 2016

Abstract
This summary examines Marathon Oil Corporation’s financial statements from the past three years. Financial ratios such as liquidity ratios, leverage ratios, and solvency ratios are discussed and interpreted against the company’s historical data and compared to industry benchmarks. The financial ratios will be used to determine the company’s current financial position how they rank compared to other industry companies.

Interpreting Financial Results A financial ratio is an effective instrument that is used in conducting company analysis. These ratios are also useful in important business decision making (Hoskin, Fizzell & Cherry, 2014). There are a number of financial ratios that can be used to conduct analysis. The aspect of the financial comparisons that are under question, determines which financial ratios are best to use.
Marathon Oil Corporation is an independent international company and was originally called Ohio Oil Corporation. The organization was originally established in 1887 (Marathon Oil, 2015). As of today, Marathon Oil continues to pull in profits despite the tremendous drop in oil prices. Marathon Oil functions as an energy company and operates in three segments. The company supplies products and services to both large and small organizations. Marathon Oil’s financial data, for years 2014, 2013, and 2012 shown below, provides a clear picture of how well the company is doing. Attached Documents from NASDAQ.com will show Marathon Oils Income Statement, Balance Sheet, and Financial Ratios.

Financial Data $ | 2014 | 2013 | 2012 | Total Current Assets | $4,593,000 | $2,975,000 | $3,762,000 | Total Assets | 36,011,000 | 35,620,000 | 35,306,000 | Total Current Liabilities | 4,379,000 | 4,333,000 | 5,081,000 | Total…...

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