Murphy Oil Corporation (MUR)

Days of inventory on hand (DOH)

		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
Inventory turnover		38.82	32.63	32.23	31.45	27.26	32.52	31.70	30.57	33.78	31.92	24.30	25.53	28.08	26.86	27.57	23.86	26.63	28.58	34.64	30.04
DOH	days	9.40	11.19	11.33	11.61	13.39	11.22	11.52	11.94	10.81	11.43	15.02	14.30	13.00	13.59	13.24	15.30	13.71	12.77	10.54	12.15

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 38.82
= 9.40

The days of inventory on hand (DOH) for Murphy Oil Corporation have shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The DOH indicates the number of days a company holds its inventory before selling it, providing insight into its efficiency in managing inventory levels.

Initially, in March 2020, Murphy Oil had 12.15 days of inventory on hand, which decreased slightly to 10.54 days by June 30, 2020. However, there was an uptick in DOH to 12.77 days by September 30, 2020, and further to 13.71 days by December 31, 2020. This increase may suggest a buildup of inventory or slower inventory turnover during this period.

Subsequently, the DOH continued to rise to 15.30 days by March 31, 2021, indicating a longer time taken to sell inventory. The trend shifted downwards slightly to 13.24 days by June 30, 2021, before rising again to 13.59 days by September 30, 2021, and 13.00 days by December 31, 2021.

By the first half of 2022, the DOH increased to 14.30 days and further to 15.02 days by June 30, 2022, signaling a potential inventory management challenge. However, there was a significant improvement by September 30, 2022, with the DOH decreasing to 11.43 days and continuing to decline to 10.81 days by December 31, 2022.

The DOH remained relatively stable around the 11 to 13-day range throughout 2023 and most of 2024, indicating a more consistent inventory management performance. By December 31, 2024, Murphy Oil achieved a lower DOH of 9.40 days, potentially indicating improved efficiency in inventory management and quicker inventory turnover.

Overall, the fluctuating trend in Murphy Oil Corporation's DOH suggests varying levels of efficiency and effectiveness in managing inventory over the analyzed period. Investors and stakeholders should monitor these metrics closely to assess the company's inventory management practices and operational performance.