Murphy Oil Corporation (MUR)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	571,367	744,490	955,710	902,326	1,033,441	1,157,560	1,542,629	1,942,362	1,601,020	1,588,444	1,038,833	487,176	277,658	-182,700	-682,533	-1,061,929	-1,362,068	-1,243,204	-738,685	-193,545
Interest expense (ttm)	US$ in thousands	105,926	85,943	94,669	103,539	112,373	123,352	130,808	142,337	150,759	164,788	175,866	182,380	238,544	241,600	243,441	239,311	186,967	213,791	212,780	232,075
Interest coverage		5.39	8.66	10.10	8.71	9.20	9.38	11.79	13.65	10.62	9.64	5.91	2.67	1.16	-0.76	-2.80	-4.44	-7.29	-5.82	-3.47	-0.83

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $571,367K ÷ $105,926K
= 5.39

The interest coverage ratio of Murphy Oil Corporation has shown significant fluctuations over the reported periods. The ratio was negative for the first several quarters, indicating that the company's operating income was insufficient to cover its interest expenses. However, starting from the fourth quarter of 2021, the interest coverage ratio turned positive and has been gradually improving since then. As of December 31, 2024, the interest coverage ratio stood at 5.39, indicating that the company's operating income was more than sufficient to cover its interest expenses. This positive trend in the interest coverage ratio reflects an improved ability of Murphy Oil Corporation to meet its interest obligations and suggests a stronger financial position compared to earlier periods.