Murphy Oil Corporation (MUR)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	752,194	972,325	880,910	1,000,290	974,327
Total current liabilities	US$ in thousands	846,545	1,257,830	1,164,330	716,321	942,789
Current ratio		0.89	0.77	0.76	1.40	1.03

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $752,194K ÷ $846,545K
= 0.89

The current ratio of Murphy Oil Corp. has exhibited fluctuations over the past five years. The ratio stood at 0.89 as of December 31, 2023, indicating that the company may have had difficulty meeting its short-term obligations with its current assets alone. This represents an improvement compared to the previous year, where the ratio was 0.77, suggesting a better ability to cover its current liabilities.

However, the current ratio was notably higher in 2020 at 1.40, indicating the company had a stronger ability to cover its short-term liabilities with its current assets. The ratio decreased in the following years, reaching 0.76 in 2021 and 1.03 in 2019.

Overall, the trend in the current ratio suggests fluctuations in the company's liquidity position over the years, with an improvement in 2023 compared to the previous year but still lower than the more favorable ratio observed in 2020. It is essential for stakeholders to monitor this ratio closely to assess the company's short-term liquidity and ability to meet its current obligations.