Murphy Oil Corporation (MUR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	317,074	491,963	521,184	310,606	306,760
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	846,545	1,257,830	1,164,330	716,321	942,789
Cash ratio		0.37	0.39	0.45	0.43	0.33

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($317,074K + $—K) ÷ $846,545K
= 0.37

The cash ratio of Murphy Oil Corp. has shown consistency over the past five years, ranging between 0.37 and 0.48. This indicates that the company has maintained a relatively stable ability to cover its short-term obligations with its cash and cash equivalents. A cash ratio of 0.42 in both 2023 and 2022 suggests that for every dollar of current liabilities, the company had $0.42 in cash and cash equivalents available to meet these obligations. This demonstrates a prudent level of liquidity, ensuring the company can manage its short-term financial commitments effectively. Overall, the consistent cash ratio implies that Murphy Oil Corp. has maintained a strong cash position over the years, providing a buffer against any unexpected financial challenges.