Murphy Oil Corporation (MUR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 76.01% | 56.38% | 45.68% | -0.46% |
| Operating profit margin | 0.38% | 30.21% | 37.60% | 36.44% | -16.73% |
| Pretax margin | 18.74% | 26.71% | 34.37% | 1.53% | -88.43% |
| Net profit margin | 13.44% | 19.18% | 22.87% | 1.74% | -71.66% |
Murphy Oil Corporation has shown a significant improvement in its profitability ratios over the years. The gross profit margin has improved consistently from a negative percentage in 2020 to an impressive 100% in 2024, indicating efficient cost management and pricing strategies.
Similarly, the operating profit margin has also displayed a positive trend, increasing from a negative figure in 2020 to a modest 0.38% in 2024, showcasing the company's ability to generate profits from its core operations.
The pretax margin has demonstrated a remarkable turnaround, moving from a substantial negative in 2020 to a healthy 18.74% in 2024, reflecting improved financial performance and better control over expenses.
Lastly, the net profit margin has exhibited steady growth, rising from a negative figure in 2020 to 13.44% in 2024, indicating effective management of taxes and other non-operating expenses.
Overall, Murphy Oil Corporation has made significant strides in enhancing its profitability, as evidenced by the positive trajectory of its key profitability ratios over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.12% | 10.67% | 15.39% | 9.91% | -2.76% |
| Return on assets (ROA) | 4.21% | 6.77% | 9.36% | 0.47% | -11.82% |
| Return on total capital | 7.31% | 19.27% | 32.01% | 6.08% | -31.43% |
| Return on equity (ROE) | 7.84% | 12.34% | 19.32% | 1.13% | -28.57% |
Murphy Oil Corporation's profitability ratios show a fluctuating trend over the last five years. The Operating Return on Assets (Operating ROA) increased from -2.76% in 2020 to 15.39% in 2022, showcasing significant improvement in the company's ability to generate operating profits from its assets. However, there was a slight decrease to 10.67% in 2023 and a significant drop to 0.12% in 2024.
The Return on Assets (ROA) also displayed a similar pattern, starting at -11.82% in 2020, reaching 9.36% in 2022, but then declining to 4.21% by the end of 2024. This ratio indicates the company's overall profitability in relation to its total assets.
Return on Total Capital saw a substantial improvement from -31.43% in 2020 to 32.01% in 2022, signifying efficient utilization of the company's total capital to generate returns. However, it dropped to 7.31% in 2024, suggesting a decrease in the company's ability to generate profits from its capital investments.
Return on Equity (ROE) also demonstrated a mixed performance, rising from -28.57% in 2020 to 19.32% in 2022 before declining to 7.84% in 2024. ROE reflects the company's ability to generate profits for its shareholders from the equity invested in the company.
Overall, while there have been some positive trends in profitability ratios, especially in the mid-years, the fluctuations in the ratios suggest that Murphy Oil Corporation may need to focus on maintaining consistent profitability and efficiently utilizing its assets and capital to maximize returns for its shareholders.