Murphy Oil Corporation (MUR)

Receivables 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
Receivables	US$ in thousands	343,992	391,152	258,150	262,014	426,684
Receivables turnover		10.06	10.05	8.91	7.51	6.63

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $3,460,150K ÷ $343,992K
= 10.06

The receivables turnover ratio for Murphy Oil Corp. has shown a positive trend over the past five years, indicating improvement in the management of its accounts receivables. The ratio has steadily increased from 6.60 in 2019 to 10.03 in 2023. This suggests that the company is collecting its outstanding receivables more efficiently each year.

A higher receivables turnover ratio reflects that Murphy Oil Corp. is converting its accounts receivables into cash more frequently during the year. This could be attributed to effective credit policies, timely collection procedures, or a more efficient customer base.

Overall, the increasing trend in the receivables turnover ratio is a positive sign for Murphy Oil Corp., as it indicates better liquidity management and potentially reduced bad debt risk. This improvement reflects positively on the company's cash flow position and working capital management.