Murphy USA Inc (MUSA)

Working capital 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
Total current assets	US$ in thousands	826,500	726,800	767,800	625,200	710,800
Total current liabilities	US$ in thousands	872,800	854,200	675,300	531,100	505,000
Working capital turnover		—	—	187.68	119.71	68.20

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $21,529,400K ÷ ($826,500K – $872,800K)
= —

Working capital turnover reflects how efficiently a company utilizes its working capital to generate sales revenue. Murphy USA Inc's working capital turnover has shown a significant improvement over the past five years, with the ratio increasing from 68.20 in 2019 to 187.68 in 2021. This indicates that the company is managing its working capital more efficiently and generating higher levels of sales relative to its working capital investments.

The annual fluctuation in the working capital turnover ratio suggests varying levels of effectiveness in utilizing working capital to support sales activities. The notable increase in 2021 compared to previous years may be attributed to better inventory and receivables management, leading to a more optimized working capital structure.

However, the lack of available data for 2020 and 2023 makes it challenging to provide a comprehensive trend analysis. It would be beneficial to assess the company's working capital turnover consistently over time to better understand its operational efficiency and financial performance.