Murphy USA Inc (MUSA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Murphy USA Inc has shown consistently low levels of solvency risk as evident from its debt ratios. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00 across the periods, indicating that the company has not relied heavily on debt financing to support its assets and operations.
Additionally, the financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, has also been relatively stable over the years. While there was a slight increase in the ratio from 3.46 in March 2020 to around 6.44 in December 2022, it began to decrease towards the end of the period, indicating a potential deleveraging or a shift towards a more conservative capital structure.
Overall, Murphy USA Inc's solvency ratios suggest a conservative financial position with minimal reliance on debt, which is indicative of a lower risk of financial distress and a more stable business model.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.69 | 7.78 | 8.01 | 7.82 | 8.42 | 8.00 | 8.91 | 10.06 | 11.34 | 11.67 | 9.95 | 9.04 | 7.44 | 7.30 | 7.32 | 8.98 | 10.92 | 10.50 | 10.32 | 7.01 |
Interest coverage ratio measures the ability of a company to meet its interest payments on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.
Based on the provided data on Murphy USA Inc's interest coverage ratio from March 31, 2020, to December 31, 2024, the trend shows some fluctuations. The interest coverage ratio ranged from a low of 7.01 in March 2020 to a high of 11.67 in September 2022. This suggests that the company's ability to cover its interest payments improved over the period, indicating a relatively healthy position in terms of meeting its interest obligations.
The ratio generally stayed above 1, which indicates that Murphy USA Inc was able to generate enough earnings to cover its interest expenses throughout the period. However, it is notable that there were some fluctuations in the ratio, indicating possible variations in the company's earnings and interest expenses during certain periods.
Overall, the interest coverage ratio trend suggests that Murphy USA Inc maintained a satisfactory ability to meet its interest obligations, with improvements seen in the later years of the period. It would be important for stakeholders to continue monitoring this ratio to ensure the company's financial health and ability to manage its debt effectively.