Murphy USA Inc (MUSA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 8.17 | 122.72 | 5.53 | 6.88 | 10.37 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 8.17 | 122.72 | 5.53 | 6.88 | 10.37 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 8.17 + — – —
= 8.17
The cash conversion cycle of Murphy USA Inc has shown fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle stood at 10.37 days, indicating that it took approximately 10 days to convert its investments in inventory and other resources back into cash. By December 31, 2021, the cycle improved to 6.88 days, suggesting a more efficient management of working capital.
In the following year, by December 31, 2022, the cash conversion cycle further decreased to 5.53 days, indicating an even faster conversion of resources into cash. However, by December 31, 2023, there was a significant spike in the cash conversion cycle to 122.72 days, which may raise concerns about the company's cash flow management during that period.
Subsequently, by December 31, 2024, the cash conversion cycle improved to 8.17 days, though not back to the level seen in earlier years. Overall, the trend in the cash conversion cycle of Murphy USA Inc shows variability, with periods of efficiency and challenges in managing working capital and cash flow effectively.
Peer comparison
Dec 31, 2024