Murphy Oil Corporation (MUR)

Cash ratio

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
Cash and cash equivalents US$ in thousands 423,569 271,223 333,619 323,430 317,074 327,769 369,355 312,400 492,000 465,998 432,019 480,587 521,200 505,067 418,100 230,870 310,600 219,636 145,505 407,753
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
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
Cash ratio 0.45 0.31 0.36 0.40 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

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 past few years, ranging from a low of 0.22 in June 2020 to a high of 0.47 in March 2020. The ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a more liquid position, reflecting a better ability to meet financial obligations without relying on external sources of capital.

In general, Murphy Oil Corporation has maintained a relatively stable cash ratio above 0.2, which suggests that the company has sufficient cash on hand to cover a significant portion of its current liabilities. However, the ratio has not shown a clear trend upwards or downwards throughout the periods analyzed. It is important for the company to continue monitoring and managing its cash reserves effectively to ensure it can meet its financial obligations and maintain financial stability.