Murphy Oil Corporation (MUR)

Total asset 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
Total assets	US$ in thousands	9,766,700	9,942,580	10,249,500	10,188,500	10,309,000	10,229,200	10,572,200	10,541,700	10,304,900	10,330,900	10,604,200	10,284,300	10,620,900	10,469,400	10,754,000	11,205,800	11,718,500	11,783,700	13,536,000	11,983,100
Total asset turnover		0.35	0.36	0.38	0.41	0.38	0.36	0.29	0.23	0.22	0.18	0.16	0.13	0.19	0.22	0.25	0.29	0.24	0.23	0.17	0.17

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $3,460,196K ÷ $9,766,700K
= 0.35

Murphy Oil Corp.'s total asset turnover has been showing variability over the past eight quarters, ranging from 0.23 to 0.41. The total asset turnover ratio indicates the company's efficiency in generating revenue from its assets. A higher ratio suggests that the company is utilizing its assets more effectively to generate sales.

In Q1 2022, the total asset turnover was at its lowest point of 0.23, indicating that the company generated $0.23 in sales for every $1 of assets. The ratio improved steadily throughout the quarters, reaching its peak at 0.41 in Q1 2023. This implies that the company became more efficient in generating sales from its assets during this period.

However, in Q4 2023, the total asset turnover ratio decreased to 0.35, which may be a cause for concern as it suggests a slight decline in efficiency in utilizing assets to generate revenue compared to the previous quarter. Further analysis is required to understand the reasons behind this fluctuation and to assess the company's overall performance in utilizing its assets effectively for revenue generation.