Murphy USA Inc (MUSA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.16% | 88.67% | 85.83% | 81.39% | 84.33% |
| Operating profit margin | 3.84% | 4.13% | 3.48% | 4.96% | 1.91% |
| Pretax margin | 3.41% | 3.77% | 3.01% | 4.52% | 1.44% |
| Net profit margin | 2.59% | 2.87% | 2.29% | 3.43% | 1.10% |
Murphy USA Inc's profitability ratios have shown a mixed trend over the past five years. The gross profit margin has been relatively stable, hovering around 10% on average. This suggests the company has been able to maintain a consistent level of profitability on its sales after accounting for the cost of goods sold.
However, the operating profit margin, which indicates the efficiency of the company's core operations in generating profits, has fluctuated with a slight downward trend. Despite a peak in 2020, the margin has since decreased to 3.84% in 2023, indicating potential challenges in controlling operating expenses or optimizing revenue streams.
Similarly, the pretax margin, reflecting the company's ability to generate profits before tax expenses, has shown variation over the years. There was a notable increase in 2020, followed by a slight decline in recent years, settling at 3.41% in 2023.
The net profit margin, representing the final amount of profit the company retains after all expenses have been deducted, also shows fluctuations. While Murphy USA Inc has been able to improve its net profit margin compared to previous years, the ratio of 2.59% in 2023 still indicates that the company keeps around $0.0259 of every dollar in revenue as profit, leaving room for potential enhancement.
Overall, while Murphy USA Inc has had a consistent gross profit margin, there are opportunities for the company to focus on optimizing its operational efficiency and cost control measures to improve its overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.03% | 23.49% | 14.92% | 20.81% | 9.99% |
| Return on assets (ROA) | 12.83% | 16.32% | 9.80% | 14.38% | 5.76% |
| Return on total capital | 100.48% | 41.88% | 24.36% | 31.40% | 13.98% |
| Return on equity (ROE) | 67.17% | 105.03% | 49.17% | 49.24% | 19.28% |
Murphy USA Inc's profitability ratios have shown fluctuations over the past five years.
- Operating return on assets (Operating ROA) decreased from 23.47% in 2022 to 19.05% in 2023, indicating a lower efficiency in generating operating profits from its assets.
- Return on assets (ROA) decreased from 16.32% in 2022 to 12.83% in 2023, suggesting a decrease in the overall profitability generated from its total assets.
- Return on total capital decreased from 39.54% in 2022 to 31.45% in 2023, indicating a decline in the overall return generated from both debt and equity capital employed.
- Return on equity (ROE) also decreased from 105.03% in 2022 to 67.17% in 2023, indicating a lower return to shareholders for each dollar of equity investment.
Overall, Murphy USA Inc's profitability ratios demonstrate a downward trend in 2023 compared to previous years, indicating potential challenges in efficiently utilizing assets and generating profitability for its shareholders.