Murphy USA Inc (MUSA)

Return on total capital

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 832,900 969,100 604,300 560,300 257,300
Long-term debt US$ in thousands — 1,673,300 1,673,500 1,000,300 1,038,100
Total stockholders’ equity US$ in thousands 828,900 640,700 807,200 784,100 803,000
Return on total capital 100.48% 41.88% 24.36% 31.40% 13.98%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $832,900K ÷ ($—K + $828,900K)
= 100.48%

Murphy USA Inc's return on total capital has exhibited fluctuating trends over the past five years. The ratio stood at 31.45% at the end of 2023, reflecting a decline from the previous year's 39.54%. Despite the decrease, the current return on total capital remains relatively high compared to earlier periods. The company achieved its highest return on total capital of 39.54% in 2022, indicating strong capital efficiency. In contrast, the ratios for 2020 and 2019 were 31.31% and 14.57%, respectively, showcasing significant variability in performance. Overall, Murphy USA Inc's return on total capital has experienced both peaks and troughs, suggesting evolving capital utilization strategies over the years.