Murphy Oil Corporation (MUR)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 9,667,480 9,716,420 9,893,720 9,668,660 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 10,620,800 10,469,400 10,754,000 11,205,800
Total stockholders’ equity US$ in thousands 5,341,840 5,249,740 5,323,720 5,303,990 5,549,650 5,340,030 5,234,310 5,137,600 4,994,800 4,708,940 4,312,800 4,032,840 4,320,800 3,949,510 3,880,600 3,935,190 4,394,100 4,343,440 4,568,540 4,886,150
Financial leverage ratio 1.81 1.85 1.86 1.82 1.76 1.86 1.96 1.98 2.06 2.17 2.45 2.61 2.38 2.62 2.73 2.61 2.42 2.41 2.35 2.29

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,667,480K ÷ $5,341,840K
= 1.81

The financial leverage ratio indicates the extent to which a company relies on debt to finance its operations. Looking at the historical trend for Murphy Oil Corporation, the financial leverage ratio has shown fluctuations over the years.

From March 31, 2020, to September 30, 2021, the financial leverage ratio steadily increased from 2.29 to 2.73, indicating a reliance on debt to support its business activities. However, from September 30, 2021, to March 31, 2024, the ratio exhibited a downward trend, reaching a low of 1.76 by December 31, 2023, suggesting a reduction in debt usage.

Although there was a slight increase in the financial leverage ratio by December 31, 2024, to 1.81, it remained lower compared to previous points in the timeline. This downward trend may indicate Murphy Oil Corporation's efforts to reduce its debt levels and improve its financial stability. It is important for investors to monitor this ratio as it can reflect the company's risk profile and ability to meet its financial obligations.