Murphy Oil Corporation (MUR)

Working capital 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
Revenue (ttm) US$ in thousands 3,019,984 3,193,222 3,393,819 3,405,662 3,450,782 3,592,703 3,805,347 4,188,737 4,220,143 3,996,334 3,517,473 3,080,062 2,801,215 2,478,987 2,216,762 1,743,678 1,751,709 2,068,611 2,393,624 2,753,993
Total current assets US$ in thousands 785,279 629,615 757,448 760,889 752,194 887,011 869,148 801,800 972,300 951,587 1,066,880 960,050 880,900 830,731 918,606 691,305 1,000,300 733,656 763,390 1,212,360
Total current liabilities US$ in thousands 942,814 884,833 927,632 818,152 846,545 892,393 1,034,510 1,028,000 1,257,800 1,212,500 1,618,210 1,598,880 1,164,300 1,134,610 1,273,290 865,384 716,300 609,386 670,739 864,751
Working capital turnover — — — — — — — — — — — — — — — — 6.17 16.65 25.83 7.92

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,019,984K ÷ ($785,279K – $942,814K)
= —

The working capital turnover ratio is a measure of how efficiently a company is utilizing its working capital to generate sales revenue. For Murphy Oil Corporation, the working capital turnover has fluctuated significantly over the past quarters.

As of March 31, 2020, the working capital turnover was reported at 7.92, indicating that the company generated $7.92 in revenue for every dollar of working capital invested. This ratio improved significantly to 25.83 by June 30, 2020, suggesting a more efficient use of working capital to drive sales.

However, the ratio decreased to 16.65 by September 30, 2020, and further dropped to 6.17 by December 31, 2020. This decline may signal potential inefficiencies in managing working capital during these periods.

From March 31, 2021, there is no available data on the working capital turnover for Murphy Oil Corporation, indicating a lack of visibility into the company's performance in utilizing working capital for the subsequent quarters.

Overall, the working capital turnover ratio provides insights into how effectively Murphy Oil Corporation is leveraging its working capital to drive business activities and generate sales. Analyzing the trend over time can help identify areas of improvement in managing working capital efficiently to support revenue generation.