Murphy USA Inc (MUSA)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	748,100	826,500	726,800	767,800	625,200
Total current liabilities	US$ in thousands	947,900	872,800	854,200	675,300	531,100
Current ratio		0.79	0.95	0.85	1.14	1.18

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $748,100K ÷ $947,900K
= 0.79

The current ratio of Murphy USA Inc shows a declining trend over the past five years. As of December 31, 2020, the current ratio was 1.18, indicating that the company had $1.18 in current assets for every $1 in current liabilities. However, by the end of December 31, 2024, the current ratio had decreased to 0.79, suggesting a weakening liquidity position.

A current ratio below 1 typically signifies that a company may have difficulty meeting its short-term obligations with its current assets alone. This declining trend in the current ratio for Murphy USA Inc raises concerns about the company's ability to cover its short-term liabilities efficiently. Further analysis of the company's liquidity management and working capital strategies may be necessary to address the decreasing trend in the current ratio.