Murphy Oil Corporation (MUR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	5,341,840	5,249,740	5,323,720	5,303,990	5,549,650	5,340,030	5,234,310	5,137,600	4,994,800	4,708,940	4,312,800	4,032,840	4,320,800	3,949,510	3,880,600	3,935,190	4,394,100	4,343,440	4,568,540	4,886,150
ROE		7.62%	10.20%	12.24%	11.73%	13.04%	13.95%	19.44%	24.72%	20.29%	20.86%	13.04%	3.69%	-1.70%	-10.48%	-19.74%	-25.92%	-26.14%	-24.14%	6.22%	14.19%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $407,171K ÷ $5,341,840K
= 7.62%

The return on equity (ROE) of Murphy Oil Corporation has shown significant fluctuations over the past few years. The ROE was positive in the first quarter of 2020 at 14.19%, indicating that the company was efficiently utilizing shareholder equity to generate profit.

However, the ROE declined sharply in the subsequent quarters, reaching negative values by the end of 2020 and remaining negative throughout most of 2021. This suggests that the company was experiencing challenges in generating profits relative to the equity invested by shareholders during this period.

From the first quarter of 2022 onwards, the ROE started to improve, turning positive again and showing a steady increase. By the end of 2024, the ROE had reached 7.62%, indicating that the company had managed to enhance its profitability and efficiency in utilizing shareholder equity.

Overall, the analysis of Murphy Oil Corporation's ROE highlights a volatile performance in recent years, with periods of negative returns followed by a recovery in profitability. Investors and stakeholders should closely monitor the company's financial performance to assess its sustainability and future growth prospects.