Murphy USA Inc (MUSA)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	832,900	787,700	852,200	913,000	969,100	955,100	800,800	729,700	604,300	536,400	478,700	524,300	560,300	541,800	547,900	368,400	257,300	296,400	260,000	286,000
Interest expense (ttm)	US$ in thousands	98,500	98,200	95,400	90,600	85,300	81,800	80,500	80,700	82,400	74,700	66,600	59,200	51,200	51,500	54,400	54,600	54,900	55,400	53,300	53,500
Interest coverage		8.46	8.02	8.93	10.08	11.36	11.68	9.95	9.04	7.33	7.18	7.19	8.86	10.94	10.52	10.07	6.75	4.69	5.35	4.88	5.35

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $832,900K ÷ $98,500K
= 8.46

Murphy USA Inc's interest coverage ratio has shown a fluctuating trend over the past eight quarters, ranging from 8.30 to 11.76. The interest coverage ratio measures the company's ability to meet its interest obligations on debt, with higher ratios indicating a stronger ability to cover interest expenses from operating income.

The interest coverage ratio for Murphy USA Inc was highest in Q4 2022 at 11.76, indicating that the company's operating income was able to cover its interest expenses nearly 12 times. However, in the most recent quarter, Q4 2023, the interest coverage ratio decreased to 8.39, suggesting a slight decrease in the company's ability to cover its interest payments.

Overall, Murphy USA Inc has generally maintained a healthy interest coverage ratio above 8 over the past eight quarters, highlighting a consistent ability to meet its interest obligations. Investors and analysts should continue to monitor this ratio to ensure the company's financial health and its ability to service its debt in the future.