Murphy USA Inc (MUSA)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Current ratio 0.79 0.80 0.84 0.87 0.95 1.02 0.94 0.92 0.85 1.01 1.03 1.08 1.14 1.15 1.10 1.18 1.18 1.45 1.52 1.32
Quick ratio 0.05 0.06 0.09 0.07 0.14 0.16 0.13 0.15 0.09 0.26 0.28 0.42 0.38 0.42 0.24 0.45 0.31 0.62 0.73 0.44
Cash ratio 0.05 0.06 0.09 0.07 0.14 0.16 0.13 0.15 0.09 0.26 0.28 0.42 0.38 0.42 0.24 0.45 0.31 0.62 0.73 0.44

Murphy USA Inc's liquidity ratios show a mixed trend over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with current assets, has been fluctuating between 0.79 and 1.52. The ratio peaked at 1.52 in June 2020 but has generally been declining, reaching 0.79 by December 2024. This downward trend indicates a potential decrease in the company's short-term liquidity and ability to meet its current obligations.

On the other hand, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows a declining trend. The quick ratio has been fluctuating between 0.05 and 0.73, with a general downward trajectory over the years. The ratio hit its peak at 0.73 in June 2020 but has since declined to 0.05 by December 2024. This downward trend suggests a potential strain on the company's ability to meet its short-term obligations using its most liquid assets.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents to cover current liabilities, mirrors the trend observed in the quick ratio. The cash ratio has been decreasing from 0.44 in March 2020 to 0.05 by December 2024. This downward trend indicates a decrease in the company's ability to meet its short-term obligations solely with its cash reserves.

Overall, the decreasing trends in the current, quick, and cash ratios suggest potential liquidity challenges for Murphy USA Inc in meeting its short-term obligations. The company may need to closely monitor its liquidity position and implement strategies to improve its short-term financial stability.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash conversion cycle days 7.89 8.46 11.12 10.47 12.34 8.36 6.42 5.27 5.53 4.99 6.00 5.73 6.88 7.66 9.36 10.18 10.37 9.37 8.35 6.91

The cash conversion cycle of Murphy USA Inc has shown fluctuations over the period analyzed. Initially, the company's cash conversion cycle ranged from around 6 to 10 days, indicating a relatively efficient process of converting investments in inventory into cash receipts from sales.

However, towards the end of 2023 and into 2024, there was a notable increase in the cash conversion cycle, peaking at 12.34 days by December 31, 2023. This suggests potential challenges in managing inventory levels, collection of receivables, and payment of payables during this period, impacting the company's liquidity and working capital management.

Subsequently, there was a gradual improvement in the cash conversion cycle, dropping to 7.89 days by December 31, 2024. This reduction indicates a more efficient utilization of cash resources and improved operational performance.

Overall, Murphy USA Inc should continue monitoring its cash conversion cycle and working capital management practices to ensure effective control over cash flows and operational efficiency in the future.