Murphy USA Inc (MUSA)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 32,800 | 117,800 | 60,500 | 256,400 | 163,600 |
| Short-term investments | US$ in thousands | 14,200 | 7,100 | 17,900 | 0 | — |
| Total current liabilities | US$ in thousands | 947,900 | 872,800 | 854,200 | 675,300 | 531,100 |
| Cash ratio | 0.05 | 0.14 | 0.09 | 0.38 | 0.31 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($32,800K
+ $14,200K)
÷ $947,900K
= 0.05
The cash ratio of Murphy USA Inc has seen fluctuations over the past five years. It stood at 0.31 as of December 31, 2020, indicating that the company had $0.31 of cash and cash equivalents for every dollar of current liabilities. By December 31, 2021, the cash ratio improved to 0.38, suggesting the company had strengthened its liquidity position. However, in the following years, the cash ratio declined significantly to 0.09 by December 31, 2022, 0.14 by December 31, 2023, and further dropped to 0.05 by December 31, 2024.
The decreasing trend in the cash ratio from 2022 to 2024 may raise concerns about Murphy USA Inc's ability to meet its short-term obligations using its available cash and cash equivalents. It indicates a potential liquidity strain or a shift in the company's cash management and working capital strategies. Management should monitor and assess the cash position closely to ensure it is sufficient to cover immediate liabilities and operational needs.
Peer comparison
Dec 31, 2024