Murphy Oil Corporation (MUR)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	407,171	535,244	651,492	622,039	723,681	744,670	1,017,756	1,270,027	1,013,448	982,450	562,478	148,839	-73,664	-414,000	-766,009	-1,020,111	-1,148,777	-1,048,565	283,988	693,444
Total assets	US$ in thousands	9,667,480	9,716,420	9,893,720	9,668,660	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	10,620,800	10,469,400	10,754,000	11,205,800
ROA		4.21%	5.51%	6.58%	6.43%	7.41%	7.49%	9.93%	12.47%	9.83%	9.60%	5.32%	1.41%	-0.71%	-4.01%	-7.22%	-9.92%	-10.82%	-10.02%	2.64%	6.19%

December 31, 2024 calculation

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

Murphy Oil Corporation's Return on Assets (ROA) is a key financial metric that indicates the company's efficiency in generating profits from its total assets. Analyzing the trend of ROA over the given time period provides insights into the company's operational performance and financial health.

From March 31, 2020, to December 31, 2024, Murphy Oil's ROA experienced fluctuations. The ROA started at 6.19% in March 2020, gradually declined to negative values by September 2020 and remained negative until March 2022. This period indicates that the company was struggling to generate profits from its assets efficiently.

However, there was a notable improvement in the ROA starting from June 2022, reaching a peak of 12.47% by March 2023. This significant increase suggests that Murphy Oil's profitability relative to its assets improved substantially during this period.

Subsequently, the ROA exhibited a slight downward trend from March 2023 to December 2024 but remained positive, indicating the company's ability to generate profits from its assets effectively, although at a slightly lower rate compared to the peak in March 2023.

Overall, the increasing trend in ROA from June 2022 to March 2023 reflects a positive development in Murphy Oil's operational efficiency and financial performance. However, the slight decline in ROA towards the end of the period suggests the need for continued monitoring of the company's asset utilization and profitability to ensure sustained growth and profitability in the future.