Murphy USA Inc (MUSA)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 0.95 | 0.85 | 1.14 | 1.18 | 1.41 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $826,500K ÷ $872,800K
= 0.95
The current ratio of Murphy USA Inc has exhibited a declining trend over the past five years, decreasing from 1.41 in 2019 to 0.95 in 2023. The current ratio indicates the company's ability to cover its short-term obligations with its current assets. A current ratio below 1 implies that the company may have difficulty meeting its short-term liabilities with its current assets alone.
The current ratio of 0.95 as of December 31, 2023, indicates that Murphy USA Inc had slightly less current assets than current liabilities. This could potentially pose liquidity challenges and raise concerns about the company's ability to pay off its short-term debts. It may prompt stakeholders to closely monitor the company's liquidity position and assess its ability to manage its current obligations effectively.
It is important for management to analyze the factors contributing to the declining current ratio, such as changes in current assets and liabilities, in order to implement strategic measures to improve liquidity and financial stability. Investors and creditors may consider this decreasing trend in the current ratio when evaluating the company's financial health and risk profile.
Peer comparison
Dec 31, 2023