Murphy USA Inc (MUSA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		8.10	8.33	8.42	7.51	9.66
DOH	days	45.07	43.83	43.36	48.60	37.78

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.10
= 45.07

Murphy USA Inc's days of inventory on hand (DOH) has fluctuated over the past five years. In 2023, the company reported a DOH of 6.48 days, which is higher compared to the previous year's 5.53 days. This suggests that in 2023, Murphy USA held inventory for a slightly longer period before selling it. However, when compared to 2020 and 2019, where the DOH was 10.37 days and 6.44 days respectively, the 2023 figure indicates an improvement in managing inventory levels.

Overall, Murphy USA's DOH has shown some variability over the years, with the company seeming to find a better balance in 2023 compared to the previous years. A lower DOH generally indicates efficient inventory management and faster inventory turnover, which can positively impact the company's profitability and cash flow. Monitoring this ratio over time can provide insights into the company's inventory management strategies and operational efficiency.