Murphy USA Inc (MUSA)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,541,600 | 4,402,400 | 4,429,900 | 4,307,000 | 4,472,100 | 4,305,300 | 4,204,800 | 4,119,200 | 4,123,200 | 4,135,100 | 4,217,800 | 4,206,200 | 4,048,200 | 4,094,300 | 3,986,100 | 3,980,600 | 2,685,700 | 2,788,200 | 2,860,700 | 2,583,400 |
| Total stockholders’ equity | US$ in thousands | 840,100 | 830,100 | 811,300 | 781,600 | 828,900 | 844,100 | 750,800 | 716,800 | 640,700 | 766,000 | 762,700 | 791,500 | 807,200 | 824,800 | 757,900 | 780,600 | 784,100 | 895,700 | 918,000 | 746,800 |
| Financial leverage ratio | 5.41 | 5.30 | 5.46 | 5.51 | 5.40 | 5.10 | 5.60 | 5.75 | 6.44 | 5.40 | 5.53 | 5.31 | 5.02 | 4.96 | 5.26 | 5.10 | 3.43 | 3.11 | 3.12 | 3.46 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,541,600K ÷ $840,100K
= 5.41
Murphy USA Inc's financial leverage ratio has shown fluctuations over the years, ranging from 3.11 to 6.44. The ratio indicates the extent to which the company relies on debt financing versus equity. An increasing trend in the financial leverage ratio, as observed from March 31, 2021, to December 31, 2024, from 5.10 to 5.41, suggests a higher proportion of debt in the company's capital structure.
A high financial leverage ratio can imply increased financial risk, as the company may have a higher debt burden and interest expenses to cover. It also indicates that a significant portion of the company's assets is funded by debt rather than equity.
Investors, lenders, and analysts monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and the potential impact on profitability and cash flows. Murphy USA Inc's management may need to carefully manage its debt levels and consider the implications of higher leverage on the company's overall financial health and strategic decisions.
Peer comparison
Dec 31, 2024