Murphy Oil Corporation (MUR)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.41	0.41	0.00	0.00	0.00	0.00	0.00	0.00	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

Murphy Oil Corp.'s debt-to-capital ratio has shown a gradual decline over the past eight quarters, indicating improved financial health in terms of leverage. The ratio decreased from 0.38 in Q1 2022 to 0.20 in Q4 2023. This signifies a reduction in the proportion of debt relative to the total capital employed by the company. A lower debt-to-capital ratio suggests a lower financial risk and indicates that the company relies less on debt financing to fund its operations.

The declining trend in the debt-to-capital ratio reflects a potential improvement in Murphy Oil Corp.'s ability to manage its debt obligations effectively. It also signals that the company may be generating sufficient cash flow from operations to support its capital structure without relying heavily on debt funding. Overall, the decreasing debt-to-capital ratio indicates a positive trend in the company's financial leverage and strengthens its financial position in the long term.