Murphy USA Inc (MUSA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 95.29% | 10.24% | 10.65% | 12.81% |
| Operating profit margin | 3.67% | 3.84% | 4.13% | 3.48% | 4.96% |
| Pretax margin | 3.22% | 3.41% | 3.77% | 3.01% | 4.52% |
| Net profit margin | 2.48% | 2.59% | 2.87% | 2.29% | 3.43% |
Murphy USA Inc's profitability ratios show a declining trend over the past five years. The gross profit margin decreased from 12.81% in 2020 to 10.24% in 2022, showing a reduction in the percentage of revenue retained after accounting for cost of goods sold. However, there was a significant improvement in 2023 and 2024, with the gross profit margin reaching exceptionally high levels of 95.29% and 100.00%, respectively, indicating a substantial increase in profitability and efficiency in producing goods.
Similarly, the operating profit margin declined from 4.96% in 2020 to 3.67% in 2024, showing a decreasing trend in the percentage of revenue remaining after deducting operating expenses. The pretax margin also exhibited a downward trajectory, decreasing from 4.52% in 2020 to 3.22% in 2024, indicating a reduction in profitability before accounting for taxes.
Additionally, the net profit margin decreased from 3.43% in 2020 to 2.48% in 2024, highlighting a decline in the percentage of revenue retained as net profit after accounting for all expenses, including taxes. This trend suggests a decrease in overall profitability and efficiency in generating profits for Murphy USA Inc over the analyzed period.
Overall, the declining profitability ratios raise concerns about the company's ability to maintain and grow its profitability in the coming years. Further analysis of cost management and revenue generation strategies may be necessary to address the downward trend and enhance the company's financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.36% | 19.03% | 23.49% | 14.92% | 20.81% |
| Return on assets (ROA) | 11.06% | 12.83% | 16.32% | 9.80% | 14.38% |
| Return on total capital | 89.12% | 100.55% | 151.40% | 74.98% | 71.34% |
| Return on equity (ROE) | 59.81% | 67.17% | 105.03% | 49.17% | 49.24% |
Murphy USA Inc's profitability ratios show variations over the years analyzed.
1. Operating Return on Assets (Operating ROA) has fluctuated, with a peak of 23.49% on December 31, 2022, and a low of 14.92% on December 31, 2021. This metric indicates the company's ability to generate operating profit relative to its total assets.
2. Return on Assets (ROA) has also shown variability, ranging from 9.80% on December 31, 2021, to 16.32% on December 31, 2022. ROA reflects the company's efficiency in utilizing its assets to generate profit.
3. Return on Total Capital reached its highest point at 151.40% on December 31, 2022, suggesting a strong return on the company's total capital employed. However, it decreased to 89.12% by December 31, 2024.
4. Return on Equity (ROE) has demonstrated fluctuations, with the highest value of 105.03% on December 31, 2022, indicating the company's ability to generate profit from shareholders' equity. The metric ranged from 49.17% on December 31, 2021, to 59.81% on December 31, 2024.
Overall, the company's profitability ratios show a mix of performance levels, with some years showcasing strong profitability metrics while others exhibiting lower returns. Investors and analysts would need to further investigate the reasons behind these fluctuations to assess the company's profitability and sustainable growth potential.