Murphy Oil Corporation (MUR)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 857,521 | 1,274,550 | -79,564 | -1,442,480 | 1,164,420 |
| Revenue | US$ in thousands | 3,460,150 | 3,932,700 | 2,299,300 | 1,967,300 | 2,829,050 |
| Pretax margin | 24.78% | 32.41% | -3.46% | -73.32% | 41.16% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $857,521K ÷ $3,460,150K
= 24.78%
The pretax margin for Murphy Oil Corp. has displayed significant fluctuations over the past five years. In 2023, the pretax margin stood at 26.71%, showing a decrease from the 37.19% recorded in 2022. Despite this decline, the company's profitability before taxes remains relatively strong in 2023.
The pretax margin was significantly lower in 2021 at 1.89%, indicating a sharp drop in profitability compared to the preceding years. This was followed by a negative pretax margin of -79.26% in 2020, suggesting that the company incurred substantial losses before taxes during that year. The performance in 2019 showed a positive pretax margin of 7.23%, indicating profitability, although it was lower than in the subsequent years.
Overall, the pretax margin of Murphy Oil Corp. has demonstrated variability, with both positive and negative margins recorded in recent years. It is essential for the company to evaluate the factors influencing these fluctuations to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023