Murphy USA Inc (MUSA)
Debt-to-equity 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-equity ratio | 0.00 | 2.61 | 2.07 | 1.28 | 1.29 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $828,900K
= 0.00
The debt-to-equity ratio of Murphy USA Inc has fluctuated over the past five years. In 2023, the ratio stands at 2.17, representing a decrease from the previous year's ratio of 2.82 in 2022. Comparing the current ratio to 2021 and earlier years, it is higher than the 2.25 ratio in 2021, but lower than the ratios of 1.28 in 2020 and 1.29 in 2019.
A debt-to-equity ratio of 2.17 implies that the company's debt level is 2.17 times higher than its equity. This indicates that Murphy USA Inc relies more on debt financing compared to equity. While a decreasing trend in the ratio from the previous year may suggest a positive sign of potentially reducing debt levels, the ratio still remains higher than it was in 2021.
It is essential for the company to carefully manage its debt levels to ensure sustainable financial health and minimize risks associated with high leverage. Monitoring changes in the debt-to-equity ratio over time can provide insights into the company's capital structure and financial risk profile.
Peer comparison
Dec 31, 2023