Murphy USA Inc (MUSA)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	21,529,400	21,811,100	22,211,500	23,399,400	23,446,100	22,849,200	21,256,200	18,943,300	17,360,500	15,429,900	13,676,300	11,608,700	11,264,300	11,883,100	12,684,200	14,103,500	14,034,600	14,059,600	14,206,200	14,248,000
Receivables	US$ in thousands	336,700	344,200	270,700	264,700	281,700	257,700	296,800	260,400	195,700	208,400	260,200	182,100	168,800	142,700	161,300	136,300	172,900	164,300	236,300	227,300
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ 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. It is calculated by dividing net credit sales by average accounts receivable.

By analyzing Murphy USA Inc's receivables turnover over the last 8 quarters, we can see some fluctuations in the ratio. The trend shows that the company's ability to collect on its receivables has been fairly stable, with some minor fluctuations.

The average receivables turnover ratio for Murphy USA Inc over this period is approximately 76.43. This suggests that, on average, the company is able to convert its accounts receivable into cash roughly 76.43 times a year.

It's important to note that a higher receivables turnover ratio indicates a more efficient collection process, while a lower ratio may suggest inefficiencies in collecting outstanding payments. Therefore, Murphy USA Inc's consistent receivables turnover ratios within the range of 63.41 to 88.42 demonstrate a relatively efficient collections process during the analyzed period.

Further examination of the reasons behind the fluctuations in the receivables turnover ratio could provide insight into the company's credit policies, customer payment behaviors, and overall financial health.