Murphy Oil Corporation (MUR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 785,279 | 752,194 | 972,300 | 880,900 | 1,000,300 |
| Total current liabilities | US$ in thousands | 942,814 | 846,545 | 1,257,800 | 1,164,300 | 716,300 |
| Current ratio | 0.83 | 0.89 | 0.77 | 0.76 | 1.40 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $785,279K ÷ $942,814K
= 0.83
The current ratio of Murphy Oil Corporation has displayed fluctuating trends over the past five years, as per the available data. Starting at 1.40 in December 31, 2020, the ratio declined to 0.76 by December 31, 2021. This sharp decrease may indicate potential liquidity concerns or challenges in meeting short-term obligations with current assets.
However, from December 31, 2021 to December 31, 2022, there was a slight increase in the current ratio to 0.77, suggesting a marginal improvement in the company's ability to cover its short-term liabilities with current assets. The ratio further improved to 0.89 by December 31, 2023, indicating a more favorable position in terms of liquidity and short-term financial health.
Nevertheless, by December 31, 2024, the current ratio decreased to 0.83, indicating a decline in liquidity compared to the previous year. It is essential for Murphy Oil Corporation to closely monitor its current ratio and ensure it stays at a level that allows the company to meet its short-term obligations efficiently without straining its financial resources.
Peer comparison
Dec 31, 2024