Murphy USA Inc (MUSA)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	18,579,100	14,721,900	10,370,700	10,208,800	10,091,700	14,644,700	19,899,900	21,033,400	21,046,200	20,516,000	19,114,800	16,923,200	15,511,600	13,778,800	12,160,100	10,142,500	9,821,400	10,448,600	11,267,200	12,857,700
Inventory	US$ in thousands	401,600	341,200	315,900	292,700	341,200	335,400	349,900	303,600	319,100	280,400	314,000	265,900	292,300	289,300	311,700	283,000	279,100	268,100	257,700	243,500
Inventory turnover		46.26	43.15	32.83	34.88	29.58	43.66	56.87	69.28	65.95	73.17	60.88	63.64	53.07	47.63	39.01	35.84	35.19	38.97	43.72	52.80

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $18,579,100K ÷ $401,600K
= 46.26

MurphyUSA Inc's inventory turnover has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures the number of times a company sells and replaces its inventory during a specific period. The ratio increased from 52.80 on March 31, 2020, to a peak of 73.17 on September 30, 2022, indicating efficient management in converting inventory into sales.

However, there were subsequent declines in the inventory turnover ratio, dropping to 29.58 on December 31, 2023, before recovering slightly to 46.26 by December 31, 2024. A declining inventory turnover ratio may suggest inefficiencies in managing inventory levels or challenges in selling products effectively.

Overall, Murphy USA Inc's inventory turnover has shown variability, reflecting changes in sales volumes, inventory management practices, and market demand. It is essential for the company to closely monitor its inventory turnover ratio to ensure optimal inventory levels while balancing the costs associated with excess inventory or stockouts.