Murphy Oil Corporation (MUR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,460,150 | 3,932,700 | 2,299,300 | 1,967,300 | 2,829,050 |
| Property, plant and equipment | US$ in thousands | 8,225,200 | 8,228,020 | 8,127,850 | 8,269,040 | 9,969,740 |
| Fixed asset turnover | 0.42 | 0.48 | 0.28 | 0.24 | 0.28 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,460,150K ÷ $8,225,200K
= 0.42
The fixed asset turnover ratio for Murphy Oil Corp. has shown some fluctuations over the past five years. The ratio was 0.42 in 2023, indicating that for every $1 of fixed assets, the company generated $0.42 in revenue. This represents a decrease from the previous year's ratio of 0.47, suggesting a slightly less efficient utilization of fixed assets in generating revenue.
Looking at the trend over the past five years, the company's fixed asset turnover has ranged from a low of 0.24 in 2020 to a high of 0.47 in 2022. The ratio saw a significant improvement from 2020 to 2021, but then dropped in 2023. This variability in the ratio may indicate fluctuations in the company's efficiency in generating sales from its fixed assets.
Overall, the downward trend in fixed asset turnover from 2022 to 2023 may indicate a need for Murphy Oil Corp. to further streamline its operations and optimize the use of its fixed assets to enhance revenue generation efficiency in the future.
Peer comparison
Dec 31, 2023