Murphy Oil Corporation (MUR)

Financial leverage 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
Total assets	US$ in thousands	9,766,700	9,942,580	10,249,500	10,188,500	10,309,000	10,229,200	10,572,200	10,541,700	10,304,900	10,330,900	10,604,200	10,284,300	10,620,900	10,469,400	10,754,000	11,205,800	11,718,500	11,783,700	13,536,000	11,983,100
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
Financial leverage ratio		1.82	1.86	1.96	1.98	2.06	2.17	2.45	2.61	2.48	2.62	2.73	2.61	2.52	2.41	2.35	2.29	2.14	2.08	2.86	2.42

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,766,700K ÷ $5,362,790K
= 1.82

The financial leverage ratio of Murphy Oil Corp. has shown a declining trend over the past few quarters, indicating a decrease in the company's reliance on debt to finance its operations. From Q1 2022 to Q4 2023, the ratio decreased from 2.61 to 1.82, reflecting a significant improvement in the company's leverage position.

The decreasing trend in the financial leverage ratio suggests that Murphy Oil Corp. has been able to reduce its debt levels relative to its equity, which can be seen as a positive signal for investors and creditors. A lower leverage ratio generally implies lower financial risk and greater financial stability for the company.

It is worth noting that while a declining leverage ratio is generally viewed positively, it is important to assess the ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial health and performance.