Murphy Oil Corporation (MUR)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 11,583 | 1,042,030 | 1,586,710 | 1,020,880 | -293,137 |
| Total assets | US$ in thousands | 9,667,480 | 9,766,700 | 10,309,000 | 10,304,900 | 10,620,800 |
| Operating ROA | 0.12% | 10.67% | 15.39% | 9.91% | -2.76% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $11,583K ÷ $9,667,480K
= 0.12%
Operating return on assets (Operating ROA) is a key financial metric used to evaluate a company's efficiency in generating profits from its operating activities relative to the total assets employed. Looking at the data provided for Murphy Oil Corporation, we can see the following trends in the Operating ROA over the years:
1. December 31, 2020: -2.76%
2. December 31, 2021: 9.91%
3. December 31, 2022: 15.39%
4. December 31, 2023: 10.67%
5. December 31, 2024: 0.12%
The Operating ROA for Murphy Oil Corporation has shown significant variability over the years, with fluctuations in performance. In 2020, the company experienced a negative Operating ROA of -2.76%, indicating that it was not efficiently utilizing its assets to generate operating profits.
However, there was a notable improvement in 2021, with the Operating ROA increasing to 9.91%, suggesting a turnaround in the company's performance and efficiency in generating profits from its operating activities.
The peak performance in terms of Operating ROA was observed in 2022 at 15.39%, indicating strong operational efficiency and profitability relative to the total assets employed.
In 2023, the Operating ROA slightly decreased to 10.67%, indicating a slight decline in the company's ability to generate profits from its operating activities compared to the previous year.
Lastly, in 2024, the Operating ROA dropped significantly to 0.12%, indicating a substantial reduction in the company's ability to generate profits from its operating activities, which may raise concerns about its operational performance and asset utilization.
In conclusion, the analysis of Murphy Oil Corporation's Operating ROA shows varying levels of performance over the years, highlighting the importance of efficiently managing assets to drive profitability and sustainable growth. Effective utilization of assets is crucial for the company's long-term success and financial health.
Peer comparison
Dec 31, 2024