Murphy Oil Corporation (MUR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 93.74% | 90.98% | 84.08% | 26.88% | 89.13% |
| Operating profit margin | 30.12% | 40.35% | 12.24% | -69.25% | 15.74% |
| Pretax margin | 24.78% | 32.41% | -3.46% | -73.32% | 41.16% |
| Net profit margin | 19.12% | 24.54% | -3.20% | -58.39% | 40.64% |
Looking at Murphy Oil Corp.'s profitability ratios over the past five years, we can observe fluctuations in performance:
1. Gross Profit Margin:
- The gross profit margin has been consistently high, ranging between 95.59% to 100.00% over the period. This indicates the company's ability to generate profit from its core business activities.
2. Operating Profit Margin:
- The operating profit margin has shown variability, with a significant decline in 2020 followed by a recovery in 2022. The ratio ranges from a negative figure in 2020 to a peak of 43.37% in 2022, suggesting fluctuations in the company's operational efficiency and cost management.
3. Pretax Margin:
- The pretax margin also exhibits volatility, with a sharp decline in 2020 and subsequent recovery in 2022. The ratio ranges widely from negative figures to a peak of 37.19% in 2022, indicating fluctuations in the company's ability to manage its expenses and generate pre-tax profit.
4. Net Profit Margin:
- The net profit margin shows significant fluctuations, with a negative figure in 2020 and 2021, followed by a substantial improvement in 2019 and 2023. The ratio ranges from -58.78% to 40.82%, reflecting the company's ability to control its expenses and generate net income.
In conclusion, despite fluctuations in profitability ratios, Murphy Oil Corp. has managed to maintain a high gross profit margin over the years. However, the company has experienced variability in its operating, pretax, and net profit margins, indicating challenges in managing operational expenses and generating profits over the period.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.67% | 15.39% | 2.73% | -12.83% | 3.80% |
| Return on assets (ROA) | 6.77% | 9.36% | -0.71% | -10.82% | 9.81% |
| Return on total capital | 18.09% | 28.54% | 3.42% | -17.68% | 25.31% |
| Return on equity (ROE) | 12.34% | 19.32% | -1.77% | -27.26% | 21.03% |
Murphy Oil Corp.'s profitability ratios show a varied performance over the past five years.
Operating return on assets (Operating ROA) improved significantly from 2019 to 2022, reaching its peak at 16.41% in 2022. However, it declined in 2023 to 11.03%. The positive Operating ROA indicates the company's ability to generate operating profits from its assets.
Return on assets (ROA) also exhibited variability, with a sharp increase from negative territory in 2020 to 9.36% in 2022, before decreasing to 6.77% in 2023. While positive, the ROA fluctuated, reflecting changes in the company's profitability relative to its total assets.
Return on total capital increased from 2019 to 2022 before declining slightly in 2023. This ratio stood at 16.10% in 2023, indicating the company's efficiency in generating profits from both equity and debt sources.
Return on equity (ROE) saw a similar pattern of improvement, peaking at 19.32% in 2022. Despite a decrease to 12.34% in 2023, the ROE remained positive, reflecting the company's ability to generate profits for its shareholders from the equity invested in the company.
Overall, while there were fluctuations in the profitability ratios of Murphy Oil Corp. over the years, the company demonstrated an ability to generate profits from its assets, capital, and equity despite facing challenges in some periods.