Murphy USA Inc (MUSA)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	4,340,100	4,123,200	4,048,200	2,685,700	2,687,200
Total stockholders’ equity	US$ in thousands	828,900	640,700	807,200	784,100	803,000
Financial leverage ratio		5.24	6.44	5.02	3.43	3.35

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,340,100K ÷ $828,900K
= 5.24

The financial leverage ratio of Murphy USA Inc has exhibited fluctuations over the past five years. The ratio has shown an increasing trend from 3.35 in 2019 to 6.44 in 2022, indicating a significant rise in the company's reliance on debt financing during this period. However, there was a notable decrease in the ratio in 2023 to 5.24, suggesting a slight improvement in the company's debt levels compared to the previous year.

The financial leverage ratio exceeding 1 indicates that the company has more debt than equity in its capital structure, highlighting a higher risk associated with its financial leverage. The peak ratio of 6.44 in 2022 may raise concerns about the company's ability to meet its debt obligations and interest payments.

Overall, the fluctuating trend in Murphy USA Inc's financial leverage ratio implies varying degrees of leverage and financial risk over the past five years. It is essential for investors and stakeholders to monitor the company's leverage levels closely to assess its financial health and sustainability in the long term.