Murphy Oil Corporation (MUR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.00 | 0.00 | 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 | 0.00 | 0.00 | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Murphy Oil Corporation, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, reflect a consistently strong financial position with minimal debt.
The debt-to-assets ratio, which measures the proportion of assets financed by debt, remains at 0.00 throughout the years, indicating that the company has not relied significantly on debt to fund its operations and investments.
Similarly, the debt-to-capital ratio and debt-to-equity ratio also consistently stay at 0.00, highlighting that the company's capital structure is primarily composed of equity rather than debt. This low level of debt compared to capital indicates a conservative approach to financing and a reduced risk of financial distress.
The financial leverage ratio, which demonstrates the extent to which a company uses debt to finance its assets, has shown a decreasing trend over the years. Starting at 2.29 in March 2020 and declining to 1.81 by December 2024, this trend signifies that Murphy Oil has been reducing its reliance on debt as a source of financing, thereby improving its overall financial stability and solvency.
Overall, Murphy Oil Corporation's solvency ratios portray a picture of a financially sound company with a prudent debt management strategy and a strong balance sheet throughout the years covered in the data.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Murphy Oil Corporation's interest coverage ratio has shown significant fluctuations over the reported periods. The ratio, which was negative in the first half of 2020, improved gradually and turned positive by the end of 2021. The interest coverage ratio has been increasing consistently since then, indicating the company's ability to cover its interest expenses with its earnings. As of December 31, 2024, the interest coverage ratio stood at 5.39, implying that the company's operating income is more than sufficient to cover its interest payments. This trend suggests an improved financial health and reduced risk of potential financial distress for Murphy Oil Corporation.