Murphy USA Inc (MUSA)
Activity ratios
Short-term
Turnover ratios
| 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 |
| Receivables turnover | 63.94 | 63.37 | 82.05 | 88.40 | 83.23 | 88.67 | 71.62 | 72.75 | 88.71 | 74.04 | 52.56 | 63.75 | 66.73 | 83.27 | 78.64 | 103.47 | 81.17 | 85.57 | 60.12 | 62.68 |
| Payables turnover | 5.31 | — | — | — | 4.85 | — | — | — | 6.27 | — | — | — | 8.03 | — | — | — | 7.83 | — | — | — |
| Working capital turnover | — | 1,664.97 | — | — | — | 2,967.43 | 718.11 | 270.62 | 187.68 | 143.27 | 200.24 | 98.05 | 119.71 | 51.71 | 44.26 | 97.47 | 68.20 | 95.00 | 183.31 | 178.99 |
Activity ratios provide insight into how efficiently a company manages its assets and liabilities to generate revenues. Let's analyze Murphy USA Inc's activity ratios based on the provided data.
1. Inventory Turnover:
Murphy USA Inc's inventory turnover has been consistent over the past eight quarters, ranging from 56.32 to 73.17. A high inventory turnover indicates that the company is effectively managing its inventory levels and selling products quickly. This can lead to lower holding costs and potential risks of obsolescence. Overall, Murphy USA Inc demonstrates efficient management of its inventory.
2. Receivables Turnover:
The receivables turnover ratio for Murphy USA Inc has also been relatively stable, ranging from 63.41 to 88.66. A high receivables turnover ratio signifies that the company is collecting its receivables quickly, which is a positive indicator of effective credit management and liquidity. Murphy USA Inc's consistent performance in this metric reflects its strong ability to convert credit sales into cash.
3. Payables Turnover:
The payables turnover ratio shows how efficiently a company pays its suppliers. Although data is missing for Q3 and earlier quarters, Murphy USA Inc's payables turnover ratio in Q4 2022 and Q1 2023 was 38.43 and 36.93, respectively. A lower payables turnover ratio may suggest that the company takes longer to pay its suppliers, potentially indicating strong bargaining power or advantageous credit terms.
4. Working Capital Turnover:
Murphy USA Inc's working capital turnover was particularly high in Q3 2022 and Q1 2022, at 2,967.12 and 270.60, respectively. This metric measures how effectively the company generates revenue relative to its working capital. A high working capital turnover ratio indicates efficient use of working capital to generate sales, demonstrating operational efficiency and liquidity.
In conclusion, Murphy USA Inc has shown strong efficiency in managing its inventory, receivables, and working capital, as evidenced by the stable and competitive activity ratios over the past eight quarters. The payables turnover data gap highlights the need for further information to assess the company's payment practices comprehensively.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (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 |
| Days of sales outstanding (DSO) | days | 5.71 | 5.76 | 4.45 | 4.13 | 4.39 | 4.12 | 5.10 | 5.02 | 4.11 | 4.93 | 6.94 | 5.73 | 5.47 | 4.38 | 4.64 | 3.53 | 4.50 | 4.27 | 6.07 | 5.82 |
| Number of days of payables | days | 68.72 | — | — | — | 75.22 | — | — | — | 58.22 | — | — | — | 45.45 | — | — | — | 46.61 | — | — | — |
Murphy USA Inc's activity ratios indicate the efficiency of its operations in managing inventory, collecting receivables, and paying suppliers.
The Days of Inventory on Hand (DOH) shows how many days it takes for the company to sell its inventory. The trend shows a slight increase in 2023 compared to 2022, potentially indicating a slower turnover of inventory, which may tie up capital.
The Days of Sales Outstanding (DSO) measures how quickly the company collects payments from its customers. The decreasing trend from Q4 2022 to Q1 2023 suggests improved efficiency in collecting receivables, which can help improve cash flow.
The Number of Days of Payables reveals how long it takes for the company to pay its suppliers. The data presented is incomplete, but there seems to be consistency in paying suppliers in a timely manner, which can impact cash flow management positively.
Overall, Murphy USA Inc's activity ratios reflect varying levels of efficiency in managing inventory, receivables, and payables. Continuous monitoring and improvement in these areas can enhance the company's operational performance and financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 8.76 | 9.07 | 9.32 | 9.93 | 10.04 | 9.90 | 9.33 | 8.39 | 7.75 | 6.91 | 6.19 | 5.36 | 6.04 | 6.41 | 6.92 | 7.80 | 7.77 | 7.86 | 8.08 | 8.20 |
| Total asset turnover | 4.96 | 5.07 | 5.28 | 5.68 | 5.69 | 5.53 | 5.04 | 4.50 | 4.29 | 3.77 | 3.43 | 2.92 | 4.19 | 4.26 | 4.43 | 5.46 | 5.22 | 5.37 | 5.52 | 5.69 |
The long-term activity ratios of Murphy USA Inc, specifically the fixed asset turnover and total asset turnover, provide insights into the efficiency of the company in generating sales in relation to its fixed assets and total assets.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how effectively the company is utilizing its fixed assets to generate revenue. A higher ratio implies better efficiency in using fixed assets for sales generation.
- Murphy USA Inc's fixed asset turnover ratio has been consistently high over the past eight quarters, ranging from 7.92 to 9.53. This indicates that the company is efficiently utilizing its fixed assets to generate sales.
- The upward trend in the fixed asset turnover ratio from Q1 2022 to Q1 2023 suggests improved efficiency in utilizing fixed assets over time.
2. Total Asset Turnover:
- The total asset turnover ratio measures the company's ability to generate revenue from all its assets. It indicates how efficiently the company is utilizing both fixed and current assets to generate sales.
- Murphy USA Inc's total asset turnover ratio has also been relatively high over the same period, ranging from 4.50 to 5.69. This suggests that the company is effectively utilizing its total assets to generate sales.
- The increasing trend in the total asset turnover ratio from Q1 2022 to Q1 2023 indicates that Murphy USA Inc has been improving its efficiency in generating sales from its total asset base.
In conclusion, based on the analysis of the long-term activity ratios, Murphy USA Inc demonstrates strong efficiency in utilizing both fixed and total assets to generate sales. The company's consistent performance in terms of asset turnover highlights its effectiveness in driving revenue and managing its asset base efficiently over the quarters analyzed.