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GuruFocus has detected 4 Warning Signs with Murphy Oil Corp $MUR.
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Murphy Oil Corp (NYSE:MUR)
Days Inventory
99.85 (As of Dec. 2016)

Murphy Oil Corp's average inventory for the three months ended in Dec. 2016 was $145 Mil. Murphy Oil Corp's cost of goods sold for the three months ended in Dec. 2016 was $132 Mil. Hence, Murphy Oil Corp's days inventory for the three months ended in Dec. 2016 was 99.85.

MUR' s Days Inventory Range Over the Past 10 Years
Min: 10.54   Max: 177.36
Current: 94.03

10.54
177.36

During the past 13 years, Murphy Oil Corp's highest Days Inventory was 177.36. The lowest was 10.54. And the median was 82.54.

MUR's Days Inventory is ranked lower than
83% of the 202 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 28.39 vs. MUR: 94.03 )

Murphy Oil Corp's days inventory increased from Dec. 2015 (79.14) to Dec. 2016 (99.85). It might indicate that Murphy Oil Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Murphy Oil Corp's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 26.10.

Inventory turnover measures how fast the company turns over its inventory within a year. Murphy Oil Corp's inventory turnover for the three months ended in Dec. 2016 was 0.91.

Inventory to revenue ratio determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Murphy Oil Corp's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.29.


Definition

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Murphy Oil Corp's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (166.788 + 127.071) / 2 ) / 603.186*365
=146.9295 / 603.186*365
=88.91

Murphy Oil Corp's Days Inventory for the quarter that ended in Dec. 2016 is calculated as:

Days Inventory (Q: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Sep. 2016 ) + Inventory (Q: Dec. 2016 )) / 2 ) / COGS (Q: Dec. 2016 )*Days in Period
=( (162.303 + 127.071) / 2 ) / 132.222*365 / 4
=144.687 / 132.222*365 / 4
=99.85

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

Murphy Oil Corp's Days Sales of Inventory for the three months ended in Dec. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=144.687/505.839*365 / 4
=26.10

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Murphy Oil Corp's Inventory Turnover for the three months ended in Dec. 2016 is calculated as

3. Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Murphy Oil Corp's Inventory to Revenue for the three months ended in Dec. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=144.687 / 505.839
=0.29

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Murphy Oil Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 11.5510.5415.1016.06173.91177.36142.5181.8683.2288.91

Murphy Oil Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 91.4582.6284.1080.1989.8079.1488.6186.12111.6799.85
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