Murphy Oil Corporation (MUR)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	1,042,029	1,163,320	1,538,899	1,925,630	1,586,710	1,572,602	1,042,885	501,061	281,435	-184,195	-685,621	-1,069,542	-1,362,309	-1,243,445	-738,926	-193,786	445,293	533,481	429,777	281,253
Total assets	US$ in thousands	9,766,700	9,942,580	10,249,500	10,188,500	10,309,000	10,229,200	10,572,200	10,541,700	10,304,900	10,330,900	10,604,200	10,284,300	10,620,900	10,469,400	10,754,000	11,205,800	11,718,500	11,783,700	13,536,000	11,983,100
Operating ROA		10.67%	11.70%	15.01%	18.90%	15.39%	15.37%	9.86%	4.75%	2.73%	-1.78%	-6.47%	-10.40%	-12.83%	-11.88%	-6.87%	-1.73%	3.80%	4.53%	3.18%	2.35%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,042,029K ÷ $9,766,700K
= 10.67%

To analyze Murphy Oil Corp.'s operating return on assets (operating ROA) based on the provided data, we observe fluctuations over eight quarters. The operating ROA has shown a mixed trend, ranging from 5.76% in Q1 2022 to 19.01% in Q1 2023.

The operating ROA was at its lowest in Q1 2022 at 5.76%, indicating lower operating income generated in relation to total assets. Subsequently, there was a significant improvement in Q2 2023, with the operating ROA increasing to 14.87%, followed by further growth reaching 19.01% in Q1 2023.

However, the operating ROA declined in Q4 2023 to 11.03%, suggesting a decrease in operational efficiency or profitability relative to the assets employed during that period. Q3 2023 also exhibited a slight decrease to 12.03% compared to the previous quarter.

Overall, while the operating ROA has shown fluctuations, it is essential for Murphy Oil Corp. to maintain a stable and increasing trend to ensure efficient utilization of assets in generating operating income. Monitoring and analyzing the factors contributing to these fluctuations can aid in making informed decisions to enhance operational performance and profitability.