Murphy Oil Corporation (MUR)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,016,690	827,327	1,840,860	1,521,680	1,759,710
Inventory	US$ in thousands	54,858	54,454	54,500	54,198	66,076
Inventory turnover		36.76	15.19	33.78	28.08	26.63

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,016,690K ÷ $54,858K
= 36.76

Murphy Oil Corporation's inventory turnover has demonstrated fluctuations over the past five years. In 2020, the inventory turnover ratio was 26.63 times, indicating that the company turned over its inventory approximately 26.63 times during that year. This ratio increased to 28.08 times in 2021, showing a slight improvement in the efficiency of inventory management.

The inventory turnover ratio saw a significant boost in 2022, reaching 33.78 times, suggesting that Murphy Oil Corporation was more effective in managing its inventory levels and converting them into sales. However, there was a notable drop in the inventory turnover ratio in 2023 to 15.19 times, which could signal potential issues with inventory management or sales performance during that period.

The most recent data point for 2024 shows a substantial increase in the inventory turnover ratio to 36.76 times, indicating a considerable improvement in the company's ability to sell and replace inventory quickly. Overall, while there have been fluctuations in Murphy Oil Corporation's inventory turnover ratios, the trend seems to be moving towards more efficient inventory management practices, particularly evidenced by the significant increase in 2024.