Murphy USA Inc (MUSA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 748,700 | 833,500 | 970,000 | 605,200 | 559,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 840,100 | 828,900 | 640,700 | 807,200 | 784,100 |
| Return on total capital | 89.12% | 100.55% | 151.40% | 74.98% | 71.34% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $748,700K ÷ ($—K + $840,100K)
= 89.12%
To analyze Murphy USA Inc's return on total capital over the specified period, we observe a consistent increase from 71.34% as of December 31, 2020, to 74.98% by December 31, 2021. This upward trend continues significantly, reaching its peak at 151.40% by December 31, 2022. Subsequently, although there was a decrease to 100.55% by December 31, 2023, the return remained well above the initial levels. By the end of December 31, 2024, the return on total capital stood at a commendable 89.12%.
This trend signifies Murphy USA Inc's ability to generate returns relative to its total capital employed, indicating strong profitability and effective capital utilization over the years under review. The substantial increase in 2022 followed by sustained high returns highlights the company's capability in efficiently deploying its resources to generate profits. The slight decline in 2023 did not significantly impact the overall positive trajectory demonstrated by the return on total capital during the period.
Peer comparison
Dec 31, 2024