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.