Murphy Oil Corporation (MUR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	3,460,196	3,591,249	3,935,004	4,221,516	3,932,761	3,696,433	3,023,733	2,472,233	2,299,257	1,890,485	1,681,685	1,343,585	1,967,330	2,274,583	2,669,783	3,202,233	2,829,049	2,695,197	2,368,608	2,014,238
Property, plant and equipment	US$ in thousands	8,225,200	8,218,020	8,426,040	8,363,000	8,228,020	8,249,390	8,295,660	8,237,740	8,127,850	8,112,090	8,224,540	8,216,720	8,269,040	8,592,830	8,891,420	8,956,300	9,969,740	9,931,960	10,041,200	8,559,140
Fixed asset turnover		0.42	0.44	0.47	0.50	0.48	0.45	0.36	0.30	0.28	0.23	0.20	0.16	0.24	0.26	0.30	0.36	0.28	0.27	0.24	0.24

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,460,196K ÷ $8,225,200K
= 0.42

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher ratio indicates better utilization of assets.

Murphy Oil Corp.'s fixed asset turnover has fluctuated over the past eight quarters. In Q1 2022, the ratio was 0.30, indicating that the company generated $0.30 in sales for every dollar invested in fixed assets. The ratio increased steadily over the next three quarters to reach 0.50 in Q1 2023, showcasing improved efficiency in asset utilization.

However, in Q2 and Q3 2023, the fixed asset turnover ratio slightly declined to 0.46 and 0.44, respectively. This could indicate a potential slowdown in the company's ability to generate sales from its fixed assets.

Overall, although there have been fluctuations, Murphy Oil Corp. has generally maintained a relatively stable fixed asset turnover ratio in the range of 0.40 to 0.50 over the past two years, demonstrating a moderate level of efficiency in utilizing its fixed assets to drive sales. It is advisable for the company to continue monitoring and improving this ratio to ensure optimal asset utilization and profitability.