Murphy USA Inc (MUSA)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		8.10	8.27	7.86	8.90	8.33	9.25	8.09	9.41	8.42	8.19	7.34	7.48	7.51	7.75	8.18	9.12	9.66	9.48	10.30	31.82
DOH	days	45.07	44.14	46.43	41.02	43.83	39.45	45.14	38.77	43.36	44.59	49.74	48.77	48.60	47.11	44.61	40.01	37.78	38.49	35.45	11.47

December 31, 2023 calculation

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

To analyze Murphy USA Inc's days of inventory on hand (DOH), we can observe a fluctuating trend over the past eight quarters. The DOH metric indicates how many days, on average, the company holds inventory before selling it.

In Q4 2023, the DOH increased to 6.48 days compared to the previous quarter's 6.26 days. This could suggest a slower rate of inventory turnover during the period. The DOH in Q2 and Q3 of 2023 were 6.42 days and 5.27 days, respectively, showing some variability in inventory management efficiency.

Comparing to the same quarter of the previous year, the DOH in Q4 2023 was higher than Q4 2022, which had a DOH of 5.53 days. This indicates a potential increase in the time taken to sell inventory, which might be attributed to various factors such as changes in demand, supply chain disruptions, or inventory mismanagement.

Overall, a high DOH value suggests that a company may be facing challenges in efficiently managing its inventory levels and could potentially lead to increased holding costs or obsolescence. Consequently, Murphy USA Inc may need to assess its inventory management strategies to optimize inventory turnover and enhance profitability.