Murphy Oil Corporation (MUR)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.71 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $5,362,790K
= 0.00
The debt-to-equity ratio of Murphy Oil Corp. has shown a fluctuating trend over the past five years. The ratio decreased from 0.71 in 2020 to 0.51 in 2019 before increasing to 0.59 in 2021 and further to 0.37 in 2022. However, in 2023, there was a significant decrease in the ratio to 0.25.
A decreasing debt-to-equity ratio indicates that the company is relying less on debt financing compared to equity, which can be viewed positively as it signifies a lower level of financial risk and potentially greater financial stability. Conversely, an increasing ratio generally indicates a higher level of leverage and financial risk.
Overall, the recent decrease in Murphy Oil Corp.'s debt-to-equity ratio from 0.37 in 2022 to 0.25 in 2023 suggests a more conservative financial structure with lower reliance on debt financing. This trend may be indicative of prudent financial management strategies aimed at reducing risk and enhancing the company's financial health.
Peer comparison
Dec 31, 2023