Murphy Oil Corporation (MUR)

Days of inventory on hand (DOH)

		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
Inventory turnover		3.98	4.32	4.76	5.31	6.51	5.16	3.60	3.11	5.85	5.96	9.92	9.55	21.78	21.96	21.64	18.28	4.14	5.63	6.81	9.42
DOH	days	91.76	84.58	76.70	68.72	56.08	70.70	101.32	117.23	62.41	61.21	36.81	38.23	16.76	16.62	16.87	19.97	88.07	64.77	53.63	38.74

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.98
= 91.76

Murphy Oil Corp.'s days of inventory on hand (DOH) has been fluctuating over the past eight quarters. In Q4 2023, the company had 384.58 days of inventory on hand, significantly higher compared to the previous quarter's 234.35 days. This may indicate that Murphy Oil Corp. is holding more inventory relative to its sales, which could tie up capital and potentially lead to higher storage costs.

Looking at the trend over the past two years, the DOH figures have ranged from as low as 115.69 days in Q4 2022 to as high as 643.36 days in Q1 2022. The peak in Q1 2022 suggests that Murphy Oil Corp. may have experienced challenges in managing its inventory levels efficiently, possibly leading to excess inventory or slower inventory turnover.

It is essential for Murphy Oil Corp. to closely monitor its inventory management practices to ensure optimal levels that align with demand and operational requirements. High DOH values can indicate inefficiencies or risks in the company's supply chain and working capital management, while lower DOH may suggest potential stockouts or production disruptions. Further analysis of the reasons behind these fluctuations and industry benchmarks would provide valuable insights into the effectiveness of Murphy Oil Corp.'s inventory management strategy.