Murphy Oil Corporation (MUR)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	407,171	535,244	651,492	622,039	723,681	744,670	1,017,756	1,270,027	1,013,448	982,450	562,478	148,839	-73,664	-414,000	-766,009	-1,020,111	-1,148,777	-1,048,565	283,988	693,444
Revenue (ttm)	US$ in thousands	3,019,984	3,193,222	3,393,819	3,405,662	3,450,782	3,592,703	3,805,347	4,188,737	4,220,143	3,996,334	3,517,473	3,080,062	2,801,215	2,478,987	2,216,762	1,743,678	1,751,709	2,068,611	2,393,624	2,753,993
Net profit margin		13.48%	16.76%	19.20%	18.26%	20.97%	20.73%	26.75%	30.32%	24.01%	24.58%	15.99%	4.83%	-2.63%	-16.70%	-34.56%	-58.50%	-65.58%	-50.69%	11.86%	25.18%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $407,171K ÷ $3,019,984K
= 13.48%

Murphy Oil Corporation's net profit margin has shown fluctuating trends over the past few years, as evidenced by the data provided. The net profit margin is a key indicator of a company's profitability, representing the percentage of revenue that translates into net income after all expenses have been deducted.

The net profit margin stood at a healthy 25.18% in March 2020, indicating that the company was able to effectively control its costs and generate profits from its operations. However, there was a significant decline in the profit margin to 11.86% by June 2020, possibly indicating operational challenges or increased expenses during that period.

The subsequent quarters of September and December 2020 reflected negative net profit margins of -50.69% and -65.58% respectively, suggesting that the company incurred losses during these periods. This could be attributed to various factors such as economic downturns, restructuring costs, or one-time expenses impacting profitability.

The negative trend continued into the first half of 2021, with net profit margins ranging from -58.50% to -34.56%. However, there was a notable improvement in the profitability of the company starting in March 2022, with the net profit margin turning positive at 4.83% and steadily rising to 30.32% by March 2023.

The positive momentum in profitability was maintained through June and September 2023, with net profit margins hovering around 26-27%. Despite a slight dip in profitability by December 2023 and continuing through September 2024, the net profit margin remained above 16%, indicating that the company was still able to generate profits and effectively manage its expenses.

Overall, Murphy Oil Corporation's net profit margin analysis suggests a mix of profitability challenges and recovery efforts over the analyzed period, with fluctuations in performance reflecting shifts in the company's operational efficiency and financial health.