Murphy USA Inc (MUSA)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.00	0.72	0.67	0.56	0.56

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $828,900K)
= 0.00

The debt-to-capital ratio of Murphy USA Inc has fluctuated over the past five years, ranging from 0.56 to 0.74. In 2023, the ratio stands at 0.68, indicating that 68% of the company's capital structure is comprised of debt. This suggests that Murphy USA Inc relies moderately on debt financing to fund its operations and growth initiatives, compared to shareholder equity.

The increase in the debt-to-capital ratio from 2022 to 2023 may imply that the company took on additional debt during the year, possibly for strategic investments or acquisitions. However, it is important to note that the ratio remains within a reasonable range and does not raise immediate concerns about the company's ability to manage its debt obligations.

Overall, a debt-to-capital ratio of 0.68 suggests that Murphy USA Inc has a balanced capital structure with a significant portion funded by debt. Investors and stakeholders should continue to monitor changes in this ratio to assess the company's financial health and risk profile.