Murphy Oil Corporation (MUR)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	407,171	661,559	965,047	48,753	-1,255,290
Revenue	US$ in thousands	3,028,470	3,448,850	4,220,140	2,801,220	1,751,710
Net profit margin		13.44%	19.18%	22.87%	1.74%	-71.66%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $407,171K ÷ $3,028,470K
= 13.44%

Based on the provided data, the net profit margin of Murphy Oil Corporation has exhibited significant fluctuations over the past five years.

In December 2020, the company experienced a notably low net profit margin of -71.66%, indicating that its expenses exceeded its revenues, resulting in a loss. However, the company managed to turn this around in the subsequent years. By December 2021, the net profit margin improved to 1.74%, indicating that the company was able to generate a modest profit relative to its revenue.

The most significant improvement was observed in December 2022 when the net profit margin surged to 22.87%, reflecting a substantial increase in profitability. This strong performance continued into December 2023 with a net profit margin of 19.18%. However, there was a slight dip in profitability by December 2024, with the net profit margin decreasing to 13.44%.

Overall, the trend indicates that Murphy Oil Corporation has made progress in enhancing its profitability over the analyzed period, though some fluctuations are evident. It is essential for the company to focus on sustaining and potentially increasing its net profit margin to ensure long-term financial stability and growth.