Murphy Oil Corporation (MUR)

Liquidity ratios

	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
Current ratio	0.83	0.71	0.82	0.93	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
Quick 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
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

The current ratio of Murphy Oil Corporation has shown a declining trend from March 2020 to December 2024, starting at 1.40 and decreasing to 0.83. This indicates a weakening ability of the company to cover its short-term liabilities with its current assets over the period.

Similarly, the quick ratio has also decreased over the same period, indicating a decline in the company's ability to meet its short-term obligations using its most liquid assets. The quick ratio started at 0.47 in March 2020 and fell to 0.45 by December 2024.

The cash ratio, a more stringent measure of liquidity, has also declined over the period, further signaling potential liquidity challenges for Murphy Oil Corporation. The cash ratio remained relatively stable around 0.30 to 0.45 from March 2020 to December 2024.

Overall, the decreasing trend in these liquidity ratios suggests that Murphy Oil Corporation may face challenges in meeting its short-term financial obligations in the future. Management should closely monitor and address the company's liquidity position to ensure financial stability and the ability to seize future opportunities.

Additional liquidity measure

		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 conversion cycle	days	9.40	11.19	11.33	11.61	13.39	11.22	11.52	11.94	10.81	11.43	15.02	14.30	13.00	13.59	13.24	15.30	13.71	12.77	10.54	12.15

The cash conversion cycle of Murphy Oil Corporation has shown some fluctuations over the years based on the provided data. The cycle represents the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020 to December 31, 2024, the cash conversion cycle ranged between a low of 9.40 days to a high of 15.30 days. The company managed to reduce its cycle to the lowest point in December 31, 2024, indicating efficient management of its working capital during that period. The shortest cash conversion cycle implies that the company is able to efficiently manage its inventory and collect payments from customers more quickly.

It is important to note that a shorter cash conversion cycle generally indicates that the company is managing its working capital effectively and generating cash flows efficiently. However, fluctuations in the cycle may also be influenced by various factors such as seasonalities, changes in industry demand, and operational efficiency. Overall, monitoring the cash conversion cycle can provide insights into the company's liquidity position and efficiency in managing its cash flows.