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.