Murphy USA Inc (MUSA)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	502,500	556,800	672,900	396,900	386,100
Total stockholders’ equity	US$ in thousands	840,100	828,900	640,700	807,200	784,100
ROE		59.81%	67.17%	105.03%	49.17%	49.24%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $502,500K ÷ $840,100K
= 59.81%

Based on the provided data, Murphy USA Inc's return on equity (ROE) has experienced fluctuations over the past five years. In 2020, the ROE was relatively high at 49.24%, indicating that the company generated a solid return for its shareholders relative to its equity base. The ROE remained stable in 2021 at 49.17%.

However, there was a significant increase in ROE in 2022 to 105.03%, suggesting a substantial improvement in the company's profitability and efficiency in generating returns on the shareholders' equity. This surge could be attributed to various factors such as improved operational performance, cost management, or strategic investments.

In 2023, the ROE decreased to 67.17%, but it remained at a relatively high level compared to the industry average, indicating that the company continued to deliver satisfactory returns to its shareholders.

By the end of 2024, the ROE decreased further to 59.81%, indicating a slight decline in the company's ability to generate profits from shareholders' equity compared to the previous year. It could be due to changes in market conditions, increased competition, or other external factors impacting the company's financial performance.

Overall, Murphy USA Inc's ROE has shown variability over the years, with some years performing exceptionally well, while others experiencing a slight decline. It would be important for stakeholders to monitor these trends and assess the underlying reasons behind the fluctuations to make informed investment decisions.