Murphy USA Inc (MUSA)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	826,000	968,400	604,000	559,000	268,500
Revenue	US$ in thousands	21,529,400	23,446,100	17,360,500	11,264,300	14,034,600
Operating profit margin		3.84%	4.13%	3.48%	4.96%	1.91%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $826,000K ÷ $21,529,400K
= 3.84%

The operating profit margin of Murphy USA Inc has experienced fluctuations over the past five years. In 2019, the operating profit margin was at a relatively low level of 1.91%, indicating that the company's operating expenses were relatively high compared to its operating revenues.

Subsequently, there was a significant improvement in the operating profit margin in 2020, increasing to 4.97%, suggesting that the company was able to better control its operating expenses or generate higher operating revenues during that period.

However, in the following years of 2021 and 2022, the operating profit margin decreased to 3.53% and 4.13%, respectively. This downward trend could imply that Murphy USA Inc faced challenges in managing its operating costs efficiently or faced pressures on its pricing and revenue generation strategies.

By the end of 2023, the operating profit margin further dipped to 3.84%. This indicates that while the company was still able to generate profits from its core operations, there might be room for improvement in optimizing its cost structure or enhancing revenue streams to boost profitability.

In conclusion, the fluctuating trend in Murphy USA Inc's operating profit margin over the years suggests the company may need to focus on enhancing operational efficiency and strategic pricing strategies to maintain and improve its profitability levels in the future.