Murphy Oil Corporation (MUR)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	407,171	661,559	965,047	48,753	-1,255,290
Total assets	US$ in thousands	9,667,480	9,766,700	10,309,000	10,304,900	10,620,800
ROA		4.21%	6.77%	9.36%	0.47%	-11.82%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $407,171K ÷ $9,667,480K
= 4.21%

Based on the data provided, Murphy Oil Corporation's return on assets (ROA) fluctuated over the years. In 2020, the company experienced a negative ROA of -11.82%, indicating that it generated a loss on its assets. However, by December 31, 2021, the ROA improved to 0.47%, suggesting a modest recovery in profitability.

Subsequently, the ROA continued to increase significantly in the following years, reaching 9.36% by December 31, 2022. This sharp improvement in ROA indicates that Murphy Oil Corporation was able to generate higher profits relative to its assets investment.

In 2023, the ROA slightly decreased to 6.77%, indicating a potential dip in profitability compared to the previous year. By December 31, 2024, the ROA further decreased to 4.21%, suggesting a continued decline in the company's ability to generate profits from its assets.

Overall, Murphy Oil Corporation experienced fluctuations in its ROA over the years, with a mix of positive and negative trends that may indicate varying levels of efficiency and profitability in utilizing its assets. Further analysis of the company's financial performance and business strategies would be necessary to better understand the factors influencing these changes in ROA.