Murphy Oil Corporation (MUR)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	567,569	658,547	861,041	798,787	921,068	1,034,208	1,411,821	1,800,025	1,450,261	1,428,928	869,832	316,186	42,891	-425,795	-929,062	-1,308,853	-1,549,035	-1,456,995	-951,465	-425,620
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
Pretax margin		18.79%	20.62%	25.37%	23.45%	26.69%	28.79%	37.10%	42.97%	34.37%	35.76%	24.73%	10.27%	1.53%	-17.18%	-41.91%	-75.06%	-88.43%	-70.43%	-39.75%	-15.45%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $567,569K ÷ $3,019,984K
= 18.79%

The pretax margin of Murphy Oil Corporation has shown a significant improvement over the past few years. Starting at negative percentages in 2020 and early 2021, the company experienced losses before taxes, with margins reaching as low as -88.43% by the end of 2020.

However, there was a notable turnaround in the company's performance in late 2021 and throughout 2022 and 2023. The pretax margin gradually increased from 1.53% in December 2021 to 42.97% in March 2023, reflecting a substantial improvement in profitability.

Although the pretax margin experienced some fluctuations in the following quarters, it generally remained at healthy levels above 20% until the end of 2024. This positive trend indicates that Murphy Oil Corporation managed to enhance its operational efficiency and cost management, resulting in better profitability before taxes during this period.