Murphy Oil Corporation (MUR)

Number of days of payables

		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
Payables turnover		0.48	0.58	0.51	0.65	0.65	0.51	0.25	0.20	0.51	0.56	0.76	1.18	3.53	5.04	3.53	2.25	0.52	0.78	0.99	1.53
Number of days of payables	days	753.03	629.74	717.44	559.03	559.42	716.19	1,443.25	1,856.94	717.54	656.17	479.54	309.12	103.27	72.37	103.42	162.02	696.60	469.22	370.21	238.42

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.48
= 753.03

The number of days of payables for Murphy Oil Corp. has fluctuated over the past eight quarters. In Q1 2022, the company had an unusually high number of days of payables at 10,190.95 days, indicating that it took over 10,000 days to pay off its payables, which is a concerning sign of inefficiency in managing its trade payables.

In the following quarters, there was a significant improvement in managing payables, with the number of days decreasing to 4,068.71 days in Q2 2022 and further to 1,572.32 in Q3 2022. However, in Q4 2022, the number of days of payables increased slightly to 1,154.02 days before increasing significantly again to 1,105.85 days in Q1 2023.

The trend reversed in Q2 and Q3 2023, with the number of days of payables increasing to 1,611.71 days and 1,744.85 days respectively. Finally, in Q4 2023, there was a substantial jump to 3,156.13 days.

Overall, the company's number of days of payables has shown inconsistency and volatility, with some quarters displaying a more efficient management of payables compared to others. It is essential for Murphy Oil Corp. to closely monitor and improve its payables management to ensure a stable and sustainable financial position.