Murphy USA Inc (MUSA)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	117,800	60,500	256,400	163,600	280,300
Short-term investments	US$ in thousands	7,100	17,900	—	—	—
Total current liabilities	US$ in thousands	872,800	854,200	675,300	531,100	505,000
Cash ratio		0.14	0.09	0.38	0.31	0.56

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($117,800K + $7,100K) ÷ $872,800K
= 0.14

The cash ratio of Murphy USA Inc has shown some fluctuations over the past five years. The company's cash ratio was at its highest in 2019 at 0.61, indicating that the company had $0.61 in cash and cash equivalents for every $1 of current liabilities. However, the cash ratio has been decreasing since then, reaching its lowest point in 2022 at 0.15. This implies that the company had $0.15 in cash and cash equivalents for every $1 of current liabilities in 2022.

In 2023, the cash ratio improved slightly to 0.17, but it still remains below the levels seen in 2019 and 2020. This indicates that Murphy USA Inc may have a lower level of liquidity in relation to its current liabilities than in previous years. It is important for investors and stakeholders to monitor the company's cash position and liquidity management closely, especially in times of economic uncertainty or rapid changes in the business environment.