Murphy Oil Corporation (MUR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,667,480 | 9,766,700 | 10,309,000 | 10,304,900 | 10,620,800 |
| Total stockholders’ equity | US$ in thousands | 5,194,250 | 5,362,790 | 4,994,800 | 4,320,800 | 4,394,100 |
| Financial leverage ratio | 1.86 | 1.82 | 2.06 | 2.38 | 2.42 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,667,480K ÷ $5,194,250K
= 1.86
The financial leverage ratio for Murphy Oil Corporation has shown a decreasing trend over the years, declining from 2.42 in 2020 to 1.86 in 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A decreasing financial leverage ratio can be a positive sign as it signifies a stronger equity position relative to debt, which can enhance the company's financial stability and reduce its financial risk. The decreasing trend suggests that Murphy Oil Corporation is managing its capital structure efficiently and moving towards a more sustainable and balanced financing approach.
Peer comparison
Dec 31, 2024