Murphy Oil Corporation (MUR)

Receivables 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
Receivables	US$ in thousands	343,992	460,630	409,989	394,936	391,152	385,153	522,023	371,838	258,150	186,683	366,542	278,819	262,014	279,149	372,549	597,248	426,684	462,513	425,845	349,768
Receivables turnover		10.06	7.80	9.60	10.69	10.05	9.60	5.79	6.65	8.91	10.13	4.59	4.82	7.51	8.15	7.17	5.36	6.63	5.83	5.56	5.76

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,460,196K ÷ $343,992K
= 10.06

The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. A higher receivables turnover ratio indicates better efficiency in collecting payments from customers, while a lower ratio may suggest potential issues with collections.

By analyzing the receivables turnover data provided for Murphy Oil Corp. over the past eight quarters, we can observe fluctuations in the company's collection efficiency. The receivables turnover ratio ranged from 5.76 to 10.61, with Q1 2023 and Q4 2023 showing the highest turnover ratios of 10.61 and 10.03, respectively.

The increasing trend from Q2 2022 to Q1 2023 suggests improvements in Murphy Oil Corp.'s collection process, reaching a peak in Q1 2023. However, the slight decrease in Q2 and Q3 2023 followed by a moderate increase in Q4 2023 indicates some variability in the company's ability to collect receivables efficiently during those periods.

Overall, Murphy Oil Corp. has shown relatively strong performance in managing its accounts receivable, with generally consistent turnover ratios above 7. However, management should continue to monitor and improve its collection practices to maintain a healthy level of receivables turnover and ensure steady cash flow.