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.