Murphy USA Inc (MUSA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	21,529,400	23,446,100	17,360,500	11,264,300	14,034,600
Property, plant and equipment	US$ in thousands	2,458,000	2,334,700	2,241,100	1,865,000	1,807,300
Fixed asset turnover		8.76	10.04	7.75	6.04	7.77

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $21,529,400K ÷ $2,458,000K
= 8.76

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.

Analyzing Murphy USA Inc's fixed asset turnover ratio over the past five years, we observe fluctuations in the efficiency of utilizing fixed assets.

In 2023, the fixed asset turnover ratio decreased to 8.37 from 9.53 in 2022. Despite the decrease, the ratio remains relatively high, indicating that Murphy USA Inc generated $8.37 in revenue for every dollar invested in fixed assets. This suggests a commendable level of efficiency in utilizing fixed assets.

In 2022, the company achieved a high fixed asset turnover ratio of 9.53, indicating that for every dollar invested in fixed assets, $9.53 in revenue was generated. This signifies strong asset utilization efficiency.

In 2021, the fixed asset turnover ratio was 7.30, reflecting a slight decrease compared to previous years. While the ratio declined, it remained at an acceptable level, indicating efficient utilization of fixed assets to generate revenue.

The absence of data for 2020 presents a gap in the trend analysis for that year. However, the trend suggests that the company generally maintains a good level of efficiency in utilizing fixed assets based on the available data.

In 2019, the fixed asset turnover ratio was 7.77, showing a moderate level of efficiency in generating revenue from fixed assets.

Overall, Murphy USA Inc has demonstrated varying levels of efficiency in utilizing its fixed assets over the past five years. It is essential for the company to continue monitoring and optimizing its asset utilization to maintain and improve operational efficiency.