Murphy Oil Corporation (MUR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	317,074	491,963	521,184	310,606	306,760
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	343,992	391,152	258,150	262,014	426,684
Total current liabilities	US$ in thousands	846,545	1,257,830	1,164,330	716,321	942,789
Quick ratio		0.78	0.70	0.67	0.80	0.78

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($317,074K + $—K + $343,992K) ÷ $846,545K
= 0.78

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty covering its short-term liabilities with its liquid assets.

For Murphy Oil Corp., the quick ratio has fluctuated over the past five years. In 2023, the quick ratio stood at 0.82, an improvement from the previous year's 0.73. Despite this improvement, the ratio remains below 1, suggesting that the company may face challenges in meeting its short-term obligations with its quick assets.

Comparing the quick ratio to historical data, we can see that Murphy Oil Corp. had its lowest quick ratio in 2021 at 0.70, indicating potential liquidity issues that year. The highest quick ratio was recorded in 2020 at 0.85, reflecting a better ability to cover short-term liabilities with quick assets.

Overall, the trend in Murphy Oil Corp.'s quick ratio indicates some variability in the company's liquidity position over the years. Investors and creditors should continue to monitor this ratio to assess the company's ability to manage its short-term financial obligations.