Murphy Oil Corporation (MUR)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 969,994 | 1,096,764 | 1,458,646 | 1,792,660 | 1,425,308 | 1,397,724 | 864,568 | 336,639 | 142,200 | -298,386 | -751,451 | -1,093,923 | -1,273,000 | -1,122,344 | 291,268 | 820,154 | 1,383,781 | 1,521,076 | 524,312 | 461,248 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | 2,755,600 | 2,988,070 | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,362,790 | 5,340,030 | 5,234,310 | 5,137,560 | 4,994,770 | 4,708,940 | 4,312,800 | 4,032,840 | 4,157,310 | 3,949,510 | 3,880,600 | 3,935,190 | 4,214,340 | 4,343,440 | 4,568,540 | 4,886,150 | 5,467,460 | 5,676,650 | 4,740,010 | 4,948,780 |
| Return on total capital | 18.09% | 20.54% | 27.87% | 34.89% | 28.54% | 29.68% | 20.05% | 8.35% | 3.42% | -7.56% | -19.36% | -16.35% | -17.67% | -25.84% | 6.38% | 16.79% | 25.31% | 26.80% | 11.06% | 9.32% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $969,994K ÷ ($—K + $5,362,790K)
= 18.09%
Murphy Oil Corp.'s return on total capital has shown fluctuations over the past eight quarters, ranging from a low of 9.35% in Q1 2022 to a high of 27.82% in Q1 2023. The trend appears to be generally increasing from the beginning of 2022, peaking in Q1 2023, and then decreasing slightly in the most recent quarter, Q4 2023.
The return on total capital indicates the efficiency and effectiveness with which the company is utilizing all of its capital to generate profits. Higher values suggest that Murphy Oil Corp. is generating more profit relative to its invested capital, which is generally viewed positively by investors and analysts.
While the recent decline in Q4 2023 from the peak in Q1 2023 is noteworthy, it is important to monitor future quarters to determine if this is a temporary fluctuation or a potential trend reversal. Additional analysis of the company's operational performance and strategic initiatives may provide further insights into the drivers behind these fluctuations in return on total capital.
Peer comparison
Dec 31, 2023