Murphy Oil Corporation (MUR)
Inventory turnover
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cost of revenue (ttm) | US$ in thousands | 2,129,620 | 1,665,825 | 1,669,749 | 1,561,875 | 1,484,406 | 1,965,205 | 1,979,526 | 1,941,169 | 1,840,861 | 1,700,268 | 1,552,592 | 1,514,862 | 1,521,679 | 1,541,777 | 1,574,668 | 1,588,451 | 1,759,714 | 1,939,072 | 2,069,155 | 2,053,409 |
Inventory | US$ in thousands | 54,858 | 51,048 | 51,811 | 49,662 | 54,454 | 60,435 | 62,450 | 63,500 | 54,500 | 53,265 | 63,886 | 59,339 | 54,198 | 57,411 | 57,116 | 66,585 | 66,076 | 67,856 | 59,728 | 68,348 |
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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,129,620K ÷ $54,858K
= 38.82
Murphy Oil Corporation's inventory turnover has fluctuated over the years based on the provided data. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring how many times the company sells and replaces its inventory over a specific period.
From March 31, 2020, to December 31, 2024, the inventory turnover ratio varied, starting at 30.04 and peaking at 38.82 in December 31, 2024. Generally, a higher inventory turnover ratio indicates that the company is selling goods more quickly, which is favorable as it reduces the risk of obsolete inventory and improves cash flow. On the other hand, a lower ratio could suggest overstocking or slow sales which may tie up capital.
Murphy Oil Corporation experienced some fluctuations in its inventory turnover, with peaks and troughs in the ratio. It is essential for the company to monitor and analyze these changes to ensure optimal inventory management practices. A consistent and appropriate inventory turnover ratio can help the company maintain healthy operations and financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024