Murphy Oil Corporation (MUR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.27 | 0.28 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.41 | 0.41 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.70 | 0.71 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the solvency ratios for Murphy Oil Corp. over the past eight quarters, a few observations can be made regarding the company's financial leverage and ability to meet its debt obligations:
1. Debt-to-assets ratio: This ratio indicates the proportion of Murphy Oil's total assets that are financed by debt. The trend shows a slight decrease from 0.18 in Q1 2023 to 0.14 in Q4 2023, suggesting that the company has been reducing its reliance on debt to finance its assets.
2. Debt-to-capital ratio: This ratio reflects the percentage of Murphy Oil's capital structure that is in the form of debt. The ratio has also shown a declining trend from 0.38 in Q1 2022 to 0.20 in Q4 2023, indicating a positive shift towards a more equity-funded capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio indicates the extent to which Murphy Oil's operations are financed by debt relative to equity. The decreasing trend from 0.61 in Q1 2022 to 0.25 in Q4 2023 suggests that the company has been reducing its financial leverage and becoming less reliant on debt financing.
4. Financial leverage ratio: This ratio measures the company's total assets relative to its equity. The declining trend from 2.61 in Q1 2022 to 1.82 in Q4 2023 indicates that Murphy Oil has been deleveraging its balance sheet and improving its financial position over the quarters.
Overall, Murphy Oil Corp. has shown a positive trend in improving its solvency ratios, indicating a stronger financial position and reduced risk of default. It is evident that the company has been focusing on reducing its debt levels and enhancing its capital structure to better support its long-term financial health and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.63 | 8.89 | 11.15 | 12.59 | 9.45 | 8.76 | 5.12 | 1.97 | 0.64 | -1.34 | -3.40 | -5.06 | -7.51 | -5.64 | 1.46 | 3.83 | 6.31 | 7.91 | 2.74 | 2.54 |
The interest coverage ratio for Murphy Oil Corp. has displayed fluctuating trends over the past eight quarters. The ratio has ranged from a low of 3.55 in Q1 2022 to a high of 13.61 in Q1 2023, indicating the company's ability to meet its interest obligations from operating income. The trend shows an improvement in the company's ability to cover its interest expenses from Q1 2022 to Q1 2023. It is also noteworthy that the interest coverage ratio remained above 1 in all quarters, indicating that the company's earnings were sufficient to cover its interest expenses. A higher interest coverage ratio signifies that the company is financially healthy and less at risk of default on its debt obligations.