Murphy USA Inc (MUSA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.41 | 5.24 | 6.44 | 5.02 | 3.43 |
Looking at the solvency ratios of Murphy USA Inc, we observe a consistent trend of low debt levels as reflected by the Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio, all of which are at 0.00 across the years from 2020 to 2024. This indicates that the company has minimal debt obligations compared to its total assets, capital, and equity, signifying a strong financial position in terms of solvency.
However, the Financial leverage ratio shows some fluctuation over the years, with the highest ratio recorded in 2022 at 6.44 and the lowest in 2020 at 3.43. Despite the fluctuations, the ratios are generally within a reasonable range, indicating that the company's use of debt to finance its operations is manageable and not excessive.
Overall, based on these solvency ratios, Murphy USA Inc appears to have a healthy financial structure with a low level of debt relative to its assets, capital, and equity, suggesting a strong ability to meet its financial obligations in the long run.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.71 | 8.46 | 11.37 | 7.34 | 10.93 |
Interest coverage is a crucial financial metric that indicates a company's ability to meet its interest obligations from its operating income. Analyzing Murphy USA Inc's interest coverage over the past five years reveals fluctuations in its ability to cover interest expenses.
As of December 31, 2020, Murphy USA Inc had an interest coverage ratio of 10.93, indicating that the company generated operating income nearly 11 times higher than its interest expenses. This suggests a strong ability to service its debt obligations.
However, by December 31, 2021, the interest coverage ratio decreased to 7.34, signaling a decline in the company's ability to cover its interest payments. This could be a concern as it indicates that the company's operating income may not be as sufficient to cover its interest expenses as before.
The trend reversed by December 31, 2022, with the interest coverage ratio improving to 11.37. This signifies a positive development, indicating that Murphy USA Inc's operating income once again comfortably covered its interest costs.
By December 31, 2023, the interest coverage ratio slightly declined to 8.46, reflecting a moderate decrease in the company's ability to cover interest expenses compared to the previous year.
As of December 31, 2024, the interest coverage ratio further decreased to 7.71, which is lower than the levels seen in the earlier years analyzed. This decline may raise concerns about the company's ability to service its debt obligations using its operating income.
In conclusion, Murphy USA Inc's interest coverage has shown fluctuations over the past five years, with periods of strength and weakness. Investors and stakeholders should monitor this metric closely to ensure the company can meet its interest obligations effectively in the future.