Murphy Oil Corporation (MUR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,042,030 | 1,586,710 | 281,435 | -1,362,310 | 445,293 |
| Total assets | US$ in thousands | 9,766,700 | 10,309,000 | 10,304,900 | 10,620,900 | 11,718,500 |
| Operating ROA | 10.67% | 15.39% | 2.73% | -12.83% | 3.80% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,042,030K ÷ $9,766,700K
= 10.67%
Operating return on assets (operating ROA) measures a company's ability to generate profit from its operations relative to its total assets. Looking at the trend for Murphy Oil Corp. over the past five years, we observe fluctuations in its operating ROA.
In 2023, the operating ROA decreased to 11.03% from 16.41% in 2022. This decline could indicate a potential decrease in efficiency in generating profits from its assets during the year. However, the company's operating ROA in 2023 still remains positive, suggesting that it was able to generate profit from its operations relative to its assets.
Comparing with 2021, where the operating ROA was 4.61%, the company's performance improved significantly in 2023. This indicates that the company was more efficient in utilizing its assets to generate operating income.
The significant improvement in 2022 from the negative operating ROA in 2020 emphasizes the company's ability to turn its operations profitable after a period of inefficiency or loss-making.
Although there was a dip in operating ROA in 2023 compared to 2022, the positive operating ROA indicates that Murphy Oil Corp. remains capable of generating profit from its operations in relation to its assets, demonstrating operational efficiency.
Peer comparison
Dec 31, 2023