Murphy Oil Corporation (MUR)

Current 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
Total current assets	US$ in thousands	752,194	887,011	869,148	801,841	972,325	951,587	1,066,880	960,050	880,910	830,731	918,606	691,305	1,000,290	733,656	763,390	1,212,360	974,327	1,144,630	2,751,890	2,638,240
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
Current ratio		0.89	0.99	0.84	0.78	0.77	0.78	0.66	0.60	0.76	0.73	0.72	0.80	1.40	1.20	1.14	1.40	1.03	1.23	1.25	1.61

December 31, 2023 calculation

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

Murphy Oil Corp.'s current ratio has fluctuated over the past eight quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position.

Looking at the data provided, the current ratio ranged from 0.60 in Q1 2022 to 0.99 in Q3 2023. In recent quarters, the current ratio has shown improvement from the low of 0.60 to the recent peak of 0.99 in Q3 2023. This suggests that the company has been more capable of meeting its short-term obligations with its current assets.

While the current ratio decreased slightly in Q4 2023 to 0.89, it still remains above the levels seen in the first half of 2022. This indicates that Murphy Oil Corp. maintains a reasonable level of liquidity. However, the ratio of 0.89 in Q4 2023 suggests a slightly weakened liquidity position compared to the immediate previous quarter.

In conclusion, although the current ratio has experienced fluctuations, Murphy Oil Corp. generally appears to have improved its liquidity position in recent quarters, with some slight variability. It will be important to monitor future trends to ensure the company maintains an adequate level of liquidity to meet its short-term obligations.