Murphy USA Inc (MUSA)

Short-term

Turnover ratios

Based on the provided data for Murphy USA Inc's activity ratios:

1. Inventory Turnover: The inventory turnover ratio indicates how efficiently a company manages its inventory. Murphy USA Inc's inventory turnover has shown fluctuations over the years, ranging from a high of 65.95 in 2022 to a low of 2.97 in 2023. The significant increase in 2022 may suggest improved inventory management, while the sharp decline in 2023 could indicate potential issues such as overstocking or slowing sales.

2. Receivables Turnover: Unfortunately, there is no data provided for receivables turnover, which could have provided insights into how effectively the company is collecting its accounts receivable.

3. Payables Turnover: Similarly, there is no data available for payables turnover, which could have shed light on how efficiently the company manages its accounts payable.

4. Working Capital Turnover: The working capital turnover ratio measures how well a company utilizes its working capital to generate sales revenue. In the years provided, the working capital turnover has been fairly high, with values of 119.71 in 2020 and increasing to 187.68 in 2021. However, data is missing for the subsequent years, so it is challenging to assess the trend or level of efficiency in recent years.

In conclusion, while Murphy USA Inc has shown varying levels of efficiency in managing its inventory and working capital in the years provided, the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Based on the provided data on Murphy USA Inc's activity ratios, we can analyze the following:

1. Days of Inventory on Hand (DOH):
- There has been a decreasing trend in the Days of Inventory on Hand from 2020 to 2024, which indicates that the company is managing its inventory more efficiently.
- The company held inventory for 10.37 days in 2020, which decreased to 5.53 days in 2022 before experiencing a significant increase to 122.72 days in 2023 and then dropped to 8.17 days in 2024. The spike in 2023 may indicate issues in inventory management or fluctuating demand.

2. Days of Sales Outstanding (DSO):
- The data provided does not indicate any Days of Sales Outstanding for the years 2020 to 2024, which suggests that there is no information available on the average number of days it takes for the company to collect its receivables.
- Without information on DSO, it is challenging to assess the efficiency of the company in collecting revenue from its sales.

3. Number of Days of Payables:
- Similar to Days of Sales Outstanding, the data does not provide any information on the Number of Days of Payables for the years 2020 to 2024. This means there is no data available on how long the company takes to pay its suppliers.
- Without this information, it is difficult to evaluate the company's relationship with its suppliers and its working capital management.

In conclusion, while the Days of Inventory on Hand data shows a fluctuating trend, the lack of information on Days of Sales Outstanding and Number of Days of Payables limits our ability to comprehensively assess Murphy USA Inc's activity ratios and overall operational efficiency.

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Long-term

The fixed asset turnover ratio measures how efficiently Murphy USA Inc utilizes its fixed assets to generate sales. From 2020 to 2022, there was a positive trend in the fixed asset turnover ratio, increasing from 6.03 to 8.06. This indicates that the company was able to generate more sales per dollar invested in fixed assets over this period. However, the data for 2023 and 2024 is missing, so it is not possible to assess the trend for these years.

The total asset turnover ratio reflects how efficiently the company uses all its assets to generate revenue. There was a general increasing trend in the total asset turnover ratio from 4.19 in 2020 to 5.69 in 2022, suggesting that Murphy USA Inc became more effective in generating sales relative to its total assets during this period. However, in 2023, the total asset turnover ratio decreased to 4.96 before dropping further to 4.46 in 2024. This decline indicates that the company may have experienced challenges in generating sales compared to its total asset base during these years.