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Murphy USA (Murphy USA) Interest Coverage : 9.06 (As of Dec. 2023)


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What is Murphy USA Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Murphy USA's Operating Income for the three months ended in Dec. 2023 was $217 Mil. Murphy USA's Interest Expense for the three months ended in Dec. 2023 was $-24 Mil. Murphy USA's interest coverage for the quarter that ended in Dec. 2023 was 9.06. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Murphy USA's Interest Coverage or its related term are showing as below:

MUSA' s Interest Coverage Range Over the Past 10 Years
Min: 4.89   Med: 7.58   Max: 11.35
Current: 8.39


MUSA's Interest Coverage is ranked better than
51.19% of 756 companies
in the Retail - Cyclical industry
Industry Median: 7.87 vs MUSA: 8.39

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Murphy USA Interest Coverage Historical Data

The historical data trend for Murphy USA's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Murphy USA Interest Coverage Chart

Murphy USA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.89 10.93 7.44 11.35 8.39

Murphy USA Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.33 6.55 7.94 10.07 9.06

Competitive Comparison of Murphy USA's Interest Coverage

For the Specialty Retail subindustry, Murphy USA's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Murphy USA's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Murphy USA's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Murphy USA's Interest Coverage falls into.



Murphy USA Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Murphy USA's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Murphy USA's Interest Expense was $-99 Mil. Its Operating Income was $827 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,235 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*826.8/-98.5
=8.39

Murphy USA's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Murphy USA's Interest Expense was $-24 Mil. Its Operating Income was $217 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,235 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*217.4/-24
=9.06

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Murphy USA  (NYSE:MUSA) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Murphy USA Interest Coverage Related Terms

Thank you for viewing the detailed overview of Murphy USA's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Murphy USA (Murphy USA) Business Description

Traded in Other Exchanges
Address
200 Peach Street, El Dorado, AR, USA, 71730-5836
Murphy USA Inc is an American retailer of gasoline products and convenience-store merchandise operating in the United States. The stores are 100% company-operated and 90% company-owned; most are adjacent to Walmart stores. The business also contains product supply and wholesale assets, such as product distribution terminals and pipelines. Murphy is positioned in the market as a low-price, high-volume fuel retailer selling through low-cost kiosks and small stores. The stores adjacent to Walmart offer a discount program. The amount of the discount offered can vary based on many factors, including state laws.
Executives
Renee M Bacon officer: SVP, Sales & Ops 200 PEACH STREET, EL DORADO AR 71730
Jennifer Bridges officer: SVP, Asset Development 200 E. PEACH STREET, EL DORADO AR 71730
Robert J Chumley officer: Senior Vice President 200 PEACH STREET, EL DORADO AR 71730
Robert Madison Murphy director 200 NORTH JEFFERSON SUITE 400, EL DODRADO AR 71730
R Andrew Clyde director, officer: President & CEO 200 PEACH STREET, EL DORADO AR 71730
Christopher A Click officer: SVP, Strategy & Development 200 PEACH ST, EL DORADO AR 71731
Jeanne Linder Phillips director 5421 DRANE DR., DALLAS TX 75201
Smith Donald R Jr officer: Vice President & Controller 200 PEACH STREET, EL DORADO AR 71730
Malynda K West officer: EVP, CFO & Treasurer 200 PEACH STREET, PO BOX 7000, EL DORADO AR 71730
Terry P. Hatten officer: SVP 6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039
Rosemary Turner director 1500 SOLANA BLVD., WESTLAKE TX 76262
David Goebel director C/O APPLEBEE'S INTERNATIONAL, INC., 4551 W 107TH STREET, OVERLAND PARK KS 66207
Blake Segal officer: SVP, QuickChek 200 E. PEACH STREET, EL DORADO AR 71730
John A Moore officer: SVP & Secretary 200 PEACH ST., P.O. BOX 7000, EL DORADO AR 71730
Claiborne P Deming director ENTERGY CORP, PO BOX 61000, NEW ORLEANS LA 70161

Murphy USA (Murphy USA) Headlines