Murphy USA Inc (MUSA)

Solvency ratios

	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
Debt-to-assets ratio	0.00	0.39	0.40	0.41	0.41	0.40	0.40	0.40	0.41	0.41	0.42	0.42	0.37	0.36	0.36	0.40	0.39	0.38	0.33	0.34
Debt-to-capital ratio	0.00	0.66	0.69	0.70	0.72	0.69	0.69	0.68	0.67	0.67	0.69	0.68	0.56	0.53	0.53	0.58	0.56	0.56	0.51	0.52
Debt-to-equity ratio	0.00	1.98	2.23	2.33	2.61	2.18	2.19	2.11	2.07	2.03	2.21	2.14	1.28	1.13	1.12	1.39	1.29	1.27	1.05	1.08
Financial leverage ratio	5.24	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	3.35	3.36	3.15	3.14

Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at the solvency ratios of Murphy USA Inc over the past eight quarters, a few key observations can be made:

1. Debt-to-Assets Ratio: This ratio indicates the proportion of a company's assets financed by debt. The trend for Murphy USA Inc's debt-to-assets ratio has been relatively stable, fluctuating between 0.41 and 0.44 over the observation period. This suggests that the company's reliance on debt to fund its assets has remained consistent.

2. Debt-to-Capital Ratio: The debt-to-capital ratio reflects the percentage of a company's capital structure that is financed by debt. Murphy USA Inc's ratio has shown some variability, ranging from 0.68 to 0.74. The higher values in some quarters indicate a higher proportion of debt in the company's capital structure, which could potentially increase financial risk.

3. Debt-to-Equity Ratio: This ratio demonstrates the degree to which a company is leveraged through debt. The trend for Murphy USA Inc's debt-to-equity ratio has seen fluctuations, with values ranging from 2.13 to 2.82. The higher ratios indicate higher financial leverage and suggest that the company relies more on debt financing compared to equity.

4. Financial Leverage Ratio: The financial leverage ratio evaluates the extent to which a company uses debt to finance its operations. Murphy USA Inc's financial leverage ratio has shown variations, with values between 5.10 and 6.44. Higher values of this ratio suggest a higher level of financial risk due to increased debt usage.

In summary, Murphy USA Inc's solvency ratios indicate a consistent reliance on debt to finance its assets and operations. The company has shown some fluctuations in its leverage and capital structure over the observation period, with a tendency towards higher debt levels in certain quarters. Investors and stakeholders may want to monitor these solvency ratios closely to assess the company's ability to sustain its financial obligations in the long term.

Coverage ratios

	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
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

Murphy USA Inc's interest coverage ratio has shown a decreasing trend over the past four quarters, starting at 11.76 in Q4 2022 and decreasing to 8.39 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened. Despite the decreasing trend, the interest coverage ratio remains consistently above 1, implying the company is generating sufficient income to cover its interest payments.

It is important to note that a higher interest coverage ratio signifies a stronger ability to meet interest obligations. In this case, Murphy USA Inc has maintained a relatively healthy interest coverage ratio above 8 in all quarters, indicating a solid financial position. However, the decreasing trend warrants monitoring to ensure the company's ability to meet its interest payments does not deteriorate further in the future.