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 | ||
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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.
Peer comparison
Dec 31, 2024