Murphy Oil Corporation (MUR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | 2,988,070 | — |
| Total assets | US$ in thousands | 9,766,700 | 10,309,000 | 10,304,900 | 10,620,900 | 11,718,500 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.28 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $9,766,700K
= 0.00
The debt-to-assets ratio of Murphy Oil Corp. has shown a steady decline over the past five years, indicating a decreasing reliance on debt to finance its assets. The ratio has decreased from 0.24 in 2019 to 0.14 in 2023, reflecting a more conservative approach towards debt management.
A lower debt-to-assets ratio suggests that the company has a stronger ability to cover its debt obligations with its existing assets. This reduction in leverage may reduce the company's financial risk and potentially enhance its creditworthiness in the eyes of lenders and investors.
Overall, the decreasing trend in Murphy Oil Corp.'s debt-to-assets ratio signals a positive shift towards a more stable and efficient capital structure, which may lead to improved financial performance and sustainability in the long term.
Peer comparison
Dec 31, 2023