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.