Murphy Oil Corporation (MUR)

Short-term

Turnover ratios

Based on the data provided for Murphy Oil Corporation, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory.
- Murphy Oil Corporation's inventory turnover has shown an increasing trend over the years, from 26.63 in 2020 to 36.76 in 2024.
- A higher inventory turnover ratio indicates that the company is selling its products quickly and efficiently, which is generally positive.

2. Receivables Turnover:
- The receivables turnover ratio reflects how well the company collects payment from its customers.
- Unfortunately, the data provided shows that there are no values for receivables turnover for any of the years.
- This may suggest that there is inadequate information to assess how effectively the company is managing its accounts receivable.

3. Payables Turnover:
- The payables turnover ratio measures how quickly the company pays its suppliers.
- Similar to receivables turnover, there is no data available for payables turnover for any of the years provided.
- Without this information, it is challenging to evaluate how efficiently Murphy Oil Corporation manages its payments to suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently the company utilizes its working capital to generate sales.
- In this case, the data only includes a value for 2020, which is 6.17, with no values for the following years.
- The lack of data for subsequent years limits the ability to assess changes in working capital efficiency over time.

In conclusion, based on the available information, Murphy Oil Corporation appears to have a favorable trend in inventory turnover, indicating efficient management of inventory. However, the lack of data for receivables turnover, payables turnover, and working capital turnover limits a comprehensive assessment of the company's overall activity ratios.

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Average number of days

Based on the provided data on Murphy Oil Corporation's activity ratios, we can analyze the following:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand decreased from 13.71 days as of December 31, 2020, to 9.93 days as of December 31, 2024. This indicates that the company has been able to manage its inventory more efficiently over the period, holding inventory for fewer days before selling it.

2. Days of Sales Outstanding (DSO):
- The data does not provide information on the Days of Sales Outstanding (DSO) for Murphy Oil Corporation for the given years. DSO reflects the average number of days a company takes to collect revenue after a sale is made. Without this data, we are unable to analyze the company's effectiveness in collecting its accounts receivable promptly.

3. Number of Days of Payables:
- Similar to DSO, the information on the number of days of payables is not available for Murphy Oil Corporation for the specified years. The number of days of payables indicates how long a company takes to pay its suppliers. This metric is essential in understanding the company's liquidity and relationship with its suppliers.

In conclusion, based on the available data, Murphy Oil Corporation has shown improvement in managing its inventory more efficiently over the years. However, without information on DSO and the number of days of payables, a comprehensive analysis of the company's overall efficiency in managing its working capital and relationships with customers and suppliers is limited.

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Long-term

The analysis of Murphy Oil Corporation's long-term activity ratios provides insight into its efficiency in utilizing fixed assets and total assets to generate revenue over the years.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio demonstrates the company's ability to generate revenue from its fixed assets.
- The trend shows an improvement from 0.21 in 2020 to 0.46 in 2022, indicating a more efficient use of fixed assets to generate sales.
- However, the absence of data for 2023 and 2024 makes it challenging to evaluate the consistency of this improvement over time.

2. Total Asset Turnover:
- The total asset turnover ratio evaluates how effectively the company utilizes all its assets to generate revenue.
- There is a steady increase in the ratio from 0.16 in 2020 to 0.41 in 2022, indicating improved efficiency in generating sales relative to total assets.
- The slight decrease observed in 2023 and 2024 to 0.35 and 0.31, respectively, might suggest a decline in the company’s ability to generate revenue efficiently or a shift in its asset utilization strategy.

In conclusion, Murphy Oil Corporation has shown an overall positive trend in both fixed asset turnover and total asset turnover ratios, indicating an improvement in utilizing assets to generate revenue. However, the fluctuation in ratios for certain years warrants further investigation to understand the underlying factors affecting the company's long-term activity efficiency.