Murphy USA Inc (MUSA)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		44.67	2.97	65.95	53.07	35.19
DOH	days	8.17	122.72	5.53	6.88	10.37

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 44.67
= 8.17

The days of inventory on hand (DOH) for Murphy USA Inc has shown a downward trend from 10.37 days as of December 31, 2020, to 6.88 days as of December 31, 2021, and further decreasing to 5.53 days as of December 31, 2022. This indicates that the company is managing its inventory more efficiently, possibly through better inventory control or demand forecasting.

However, there is a significant spike in the DOH to 122.72 days as of December 31, 2023, which could signal potential issues such as overstocking, slowing sales, or supply chain disruptions affecting the company's ability to move inventory. This sudden increase may require further investigation to understand the underlying causes and address any potential risks.

The DOH then dropped back down to 8.17 days as of December 31, 2024, which is closer to the levels seen in the earlier years. Overall, the fluctuation in the DOH over the years suggests varying inventory management strategies and external factors impacting Murphy USA Inc's inventory turnover efficiency. Further analysis and monitoring of inventory levels will be crucial for the company to maintain optimal inventory management practices.