Murphy Oil Corporation (MUR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9.40 | 11.19 | 11.33 | 11.61 | 13.39 | 11.22 | 11.52 | 11.94 | 10.81 | 11.43 | 15.02 | 14.30 | 13.00 | 13.59 | 13.24 | 15.30 | 13.71 | 12.77 | 10.54 | 12.15 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 9.40 | 11.19 | 11.33 | 11.61 | 13.39 | 11.22 | 11.52 | 11.94 | 10.81 | 11.43 | 15.02 | 14.30 | 13.00 | 13.59 | 13.24 | 15.30 | 13.71 | 12.77 | 10.54 | 12.15 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 9.40 + — – —
= 9.40
The cash conversion cycle of Murphy Oil Corporation has demonstrated fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The average cash conversion cycle for Murphy Oil Corporation over this period was approximately 12.20 days. The company's cash conversion cycle varied from a low of 9.40 days on December 31, 2024, to a high of 15.30 days on March 31, 2021.
A lower cash conversion cycle indicates that the company is able to more efficiently manage its working capital, while a higher cycle may suggest longer periods of holding inventory or collecting receivables, potentially leading to liquidity challenges.
It is crucial for Murphy Oil Corporation to monitor its cash conversion cycle regularly to ensure optimal working capital management, efficient operations, and sustainable cash flow generation. Fluctuations in the cash conversion cycle should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2024