Murphy USA Inc (MUSA)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,763,400	2,657,100	2,460,800	2,096,100	2,198,900
Payables	US$ in thousands	520,300	547,600	392,500	261,000	280,800
Payables turnover		5.31	4.85	6.27	8.03	7.83

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,763,400K ÷ $520,300K
= 5.31

The payables turnover ratio for Murphy USA Inc has been relatively stable over the past five years, with values ranging between 36.93 and 45.97. This ratio measures how efficiently the company is managing its trade payables by comparing the cost of goods sold to average accounts payable.

A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period, which could suggest strong liquidity management or favorable credit terms. On the other hand, a lower ratio may indicate that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships.

In this case, the payables turnover ratio has shown a slight fluctuation over the years but has generally remained at a reasonably high level, indicating that Murphy USA Inc has been effectively managing its trade payables and liquidity. This consistency suggests that the company has maintained good relationships with its suppliers while also efficiently controlling its working capital.