Murphy Oil Corporation (MUR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 5,362,790 | 4,994,770 | 4,157,310 | 4,214,340 | 5,467,460 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.41 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $5,362,790K)
= 0.00
The trend in Murphy Oil Corp.'s debt-to-capital ratio over the past five years indicates a consistent decrease in the proportion of debt to total capital. The ratio has declined from 0.34 in 2019 to 0.20 in 2023. This suggests that the company has been reducing its reliance on debt financing in relation to its overall capital structure.
A lower debt-to-capital ratio may indicate improved financial stability and reduced financial risk for the company. It could also imply that Murphy Oil Corp. has been efficiently managing its capital structure by utilizing more equity financing or by reducing its overall debt levels.
Overall, the decreasing trend in the debt-to-capital ratio for Murphy Oil Corp. reflects a positive financial strategy that may enhance the company's financial health and resilience in the long term.
Peer comparison
Dec 31, 2023