Murphy Oil Corporation (MUR)

Days of sales outstanding (DSO)

		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
Receivables turnover		10.06	7.80	9.60	10.69	10.05	9.60	5.79	6.65	8.91	10.13	4.59	4.82	7.51	8.15	7.17	5.36	6.63	5.83	5.56	5.76
DSO	days	36.29	46.82	38.03	34.15	36.30	38.03	63.01	54.90	40.98	36.04	79.56	75.74	48.61	44.79	50.93	68.08	55.05	62.64	65.62	63.38

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.06
= 36.29

To analyze Murphy Oil Corp.'s Days of Sales Outstanding (DSO) over the past eight quarters, we observe the following trends:

1. Overall, there has been variability in the DSO figures over the quarters, indicating fluctuations in the company's accounts receivable collection efficiency.

2. The DSO figures ranged between 34.41 days to 63.34 days during the period under review, with the highest DSO observed in Q2 2022 and the lowest in Q1 2023.

3. Q2 2022 stands out as a quarter with significantly high DSO of 63.34 days, suggesting a delay in collecting sales revenue from customers. This spike in DSO warrants further investigation into the company's credit policies and collection procedures during that period.

4. On the other hand, Q1 2023 recorded the lowest DSO of 34.41 days, indicating an improvement in the company's accounts receivable collection process, potentially resulting in faster cash conversion from sales.

5. It is crucial for Murphy Oil Corp. to closely monitor DSO trends to ensure efficient management of accounts receivable and timely collection of outstanding payments, which directly impact the company's liquidity and working capital management.

In conclusion, while Murphy Oil Corp. has shown fluctuations in its DSO figures over the past eight quarters, the company should focus on enhancing its accounts receivable collection processes to maintain healthy cash flows and financial stability.