Murphy Oil Corporation (MUR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 423,569 | 317,074 | 492,000 | 521,200 | 310,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 942,814 | 846,545 | 1,257,800 | 1,164,300 | 716,300 |
| Cash ratio | 0.45 | 0.37 | 0.39 | 0.45 | 0.43 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($423,569K
+ $—K)
÷ $942,814K
= 0.45
The cash ratio of Murphy Oil Corporation has fluctuated over the years based on the provided data. In 2020, the cash ratio was 0.43, indicating that the company had $0.43 in cash and cash equivalents for every dollar of current liabilities. This ratio improved slightly to 0.45 in 2021, suggesting a stronger liquidity position. However, in 2022 and 2023, the cash ratio decreased to 0.39 and 0.37, respectively, indicating a potential decrease in the company's ability to cover its short-term obligations with available cash.
The ratio recovered in 2024 to 0.45, returning to the 2021 level, which could signify an improvement in the company's liquidity position that year. Overall, the trend in the cash ratio highlights the importance of monitoring Murphy Oil Corporation's ability to meet its short-term obligations using cash and cash equivalents. It is essential for investors and stakeholders to assess the company's liquidity position consistently to understand its financial health.
Peer comparison
Dec 31, 2024