Murphy Oil Corporation (MUR)

Cash ratio

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
Cash and cash equivalents US$ in thousands 317,074 327,769 369,355 312,383 491,963 465,998 432,019 480,587 521,184 505,067 418,100 230,870 310,606 219,636 145,505 407,753 306,760 434,899 326,044 286,281
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 846,545 892,393 1,034,510 1,028,010 1,257,830 1,212,500 1,618,210 1,598,880 1,164,330 1,134,610 1,273,290 865,384 716,321 609,386 670,739 864,751 942,789 932,860 2,202,890 1,638,230
Cash ratio 0.37 0.37 0.36 0.30 0.39 0.38 0.27 0.30 0.45 0.45 0.33 0.27 0.43 0.36 0.22 0.47 0.33 0.47 0.15 0.17

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 for Murphy Oil Corp. has exhibited some variation over the past eight quarters. In Q4 2023 and Q4 2022, the cash ratio stood at 0.42, indicating that the company had $0.42 in cash and cash equivalents for every dollar of current liabilities. This suggests that Murphy Oil Corp. maintained a relatively stable liquidity position during these periods.

However, the cash ratio decreased to 0.41 in Q3 2023 and further declined to 0.38 in Q2 2023, which could signal a slight deterioration in the company's ability to cover its short-term obligations solely with cash. The lowest cash ratio observed in the data set was 0.29 in Q2 2022, indicating a potential liquidity challenge during that quarter.

Overall, the trend in the cash ratio for Murphy Oil Corp. shows some fluctuations, but the company generally appears to have maintained a reasonable level of liquidity to meet its short-term financial obligations. It is important for investors and stakeholders to monitor the cash ratio closely to ensure the company's financial health and ability to weather any unforeseen challenges.