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GuruFocus has detected 1 Warning Sign with Murphy Oil Corp $MUR.
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Murphy Oil Corp (NYSE:MUR)
Altman Z-Score
1.51 (As of Today)

Murphy Oil Corp has a Z-score of 1.51, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress” Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey” Zones.

MUR' s Altman Z-Score Range Over the Past 10 Years
Min: 0.45   Max: 5.21
Current: 1.52


During the past 13 years, Murphy Oil Corp's highest Altman Z-Score was 5.21. The lowest was 0.45. And the median was 2.44.


Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Murphy Oil Corp's Altman Z-Score for today is calculated with this formula:


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

Trailing Twelve Months (TTM) ended in Mar. 2017:
Total Assets was $10,272 Mil.
Total Current Assets was $1,610 Mil.
Total Current Liabilities was $1,469 Mil.
Retained Earnings was $5,745 Mil.
Pretax Income was 154.882 + -80.055 + -16.759 + -131.267 = $-73 Mil.
Interest Expense was -44.597 + -44.281 + -39.219 + -34.45 = $-163 Mil.
Revenue was 664.619 + 505.839 + 500.533 + 437.462 = $2,108 Mil.
Market Capitalization (Today) was $4,205 Mil.
Total Liabilities was $5,314 Mil.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1609.856 - 1468.649)/10271.987

X2=Retained Earnings/Total Assets

X3=Earnings Before Interest and Taxes/Total Assets
=(Pretax Income + Interest Expense)/Total Assets
=(-73.199 + -162.547)/10271.987

X4=Market Value Equity/Book Value of Total Liabilities
=Market Capitalization/Total Liabilities

X5=Revenue/Total Assets

The zones of discrimination were as such:

Distress” Zones - 1.81 < “Grey” Zones < 2.99 - “Safe” Zones

Murphy Oil Corp has a Z-score of 1.51 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm’s assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm’s assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm’s assets.

Read more about Altman Z-score and the original research.

Be Aware

Z score does not apply to financial companies.

Related Terms

Total Assets, Total Current Assets, Total Current Liabilities, Retained Earnings, Pretax Income, Interest Expense, Revenue, Market Capitalization, Total Liabilities, Financial Strength

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

X1 0.07380.0860.09360.04350.0440.03990.01630.0078-0.02410.0055
X2 0.37810.49850.48640.47780.52770.44040.46030.52190.54050.5565
X3 0.11990.26220.1020.09560.08550.07890.08820.0818-0.2754-0.0335
X4 2.53961.49681.65222.06111.73851.14181.3351.10020.62420.9965
X5 1.75012.46051.49041.40770.30260.26360.30780.32740.26390.182
Zones Safe ZonesSafe ZonesSafe ZonesSafe ZonesGrey ZonesGrey ZonesGrey ZonesGrey ZonesDistress” ZonesDistress” Zones

Murphy Oil Corp Quarterly Data

X1 0.00780.02710.04570.0407-0.02410.0280.01580.06650.00550.0137
X2 0.52190.57060.56210.54320.54050.51940.59470.56150.55650.5593
X3 0.08180.06070.0334-0.182-0.2754-0.2888-0.3354-0.089-0.03350.0087
X4 1.10021.19220.98590.63080.62420.69341.15270.98610.99650.9284
X5 0.32740.33710.29710.29950.26390.22180.2260.1950.1820.2053
Zones Grey ZonesGrey ZonesGrey ZonesDistress” ZonesDistress” ZonesDistress” ZonesDistress” ZonesDistress” ZonesDistress” ZonesDistress” Zones
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