Murphy USA Inc (MUSA)

Receivables 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
Receivables	US$ in thousands	336,700	281,700	195,700	168,800	172,900
Receivables turnover		63.94	83.23	88.71	66.73	81.17

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $21,529,400K ÷ $336,700K
= 63.94

The receivables turnover ratio measures how efficiently a company is able to collect on its accounts receivable during a specific period. In the case of Murphy USA Inc, the receivables turnover has shown some fluctuation over the past five years, with values ranging from a low of 63.94 in 2023 to a high of 88.71 in 2021.

A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more quickly, which is generally preferred as it signifies better cash flow management. Conversely, a lower ratio may suggest slower collections and potential liquidity issues.

Despite the year-to-year variation in the receivables turnover ratio, it is crucial to analyze trends over time to identify any underlying patterns or changes in the company's receivables management efficiency. Further examination of the reasons behind these fluctuations and comparison with industry benchmarks would provide additional insights into Murphy USA Inc's performance in this area.