Murphy Oil Corporation (MUR)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	379,517	1,033,440	1,598,920	262,564	-1,381,140
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	5,194,250	5,362,790	4,994,800	4,320,800	4,394,100
Return on total capital		7.31%	19.27%	32.01%	6.08%	-31.43%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $379,517K ÷ ($—K + $5,194,250K)
= 7.31%

Murphy Oil Corporation's return on total capital experienced significant fluctuations over the five-year period from 2020 to 2024. At the end of 2020, the return on total capital was -31.43%, indicating that the company was generating negative returns compared to the total capital employed.

However, the following years showed an improvement in performance. By the end of 2021, the return on total capital increased to 6.08%, suggesting a positive turnaround. Subsequently, in 2022, the return on total capital surged to 32.01%, indicating a strong performance in utilizing the total capital effectively to generate returns.

In 2023, the return on total capital slightly decreased to 19.27%, but remained at a relatively healthy level, showcasing the company's ability to maintain profitability. By the end of 2024, the return on total capital further dipped to 7.31%, signifying a slight decrease in performance compared to the previous year.

Overall, Murphy Oil Corporation's return on total capital showed a mix of negative, positive, and fluctuating trends over the five-year period, with improvements in performance seen in some years and slight declines in others. It is important for investors and stakeholders to closely monitor these fluctuations to assess the company's efficiency in generating returns relative to the total capital employed.