Murphy USA Inc (MUSA)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.41 | 1.29 | 1.13 | 1.15 |
| Quick ratio | 0.53 | 0.58 | 0.46 | 0.49 | 0.42 | 0.60 | 0.63 | 0.73 | 0.67 | 0.71 | 0.61 | 0.72 | 0.63 | 0.90 | 1.02 | 0.74 | 0.90 | 0.80 | 0.72 | 0.76 |
| Cash ratio | 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 | 0.56 | 0.48 | 0.31 | 0.34 |
The liquidity ratios of Murphy USA Inc over the past eight quarters show fluctuations in its ability to meet short-term obligations. The current ratio, a general measure of liquidity, has ranged from 0.85 to 1.02, with the latest being 0.95. This indicates that for every dollar of current liabilities, the company has $0.95 of current assets to cover them, suggesting some vulnerability in meeting short-term obligations.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has varied between 0.48 and 0.77, with the most recent figure at 0.56. This implies that the company may face challenges in meeting immediate liabilities without relying on selling inventory.
The cash ratio, the most conservative measure of liquidity, reflects the ability to meet short-term obligations using only cash and cash equivalents. Murphy USA Inc's cash ratio has ranged from 0.15 to 0.46, with the latest figure at 0.17. This suggests that the company has a relatively low level of cash reserves compared to its current liabilities, potentially indicating a limited ability to cover short-term obligations without relying on other assets or financing.
In summary, Murphy USA Inc's liquidity ratios show fluctuations, with the company potentially facing challenges in meeting short-term obligations, especially when considering its quick and cash ratios. Further analysis and monitoring of these ratios are recommended to ensure the company's liquidity position remains stable.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -17.95 | 49.90 | 50.88 | 45.15 | -27.00 | 43.57 | 50.23 | 43.79 | -10.75 | 49.52 | 56.68 | 54.50 | 8.62 | 51.49 | 49.25 | 43.54 | -4.33 | 42.76 | 41.52 | 17.29 |
To analyze Murphy USA Inc's cash conversion cycle, we can observe a fluctuating trend over the past eight quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, the cash conversion cycle decreased significantly to 2.31 days compared to the previous quarter, indicating an improvement in the efficiency of cash management. This reduction could be attributed to better inventory management or quicker collection of accounts receivable.
However, in Q3 and Q2 2023, the cash conversion cycle increased to 12.02 days and 10.86 days, respectively, reflecting a slowdown in the company's ability to generate cash from its operations. This could be a result of increased inventory levels or longer collection periods for accounts receivable.
Q1 2023 showed a slight decrease in the cash conversion cycle to 9.40 days compared to the previous quarter, indicating some improvement but still higher than optimal levels.
Notably, in Q4 2022, the company had an exceptionally low cash conversion cycle of 0.42 days, which could suggest very efficient working capital management during that period.
Overall, Murphy USA Inc's cash conversion cycle has varied significantly in recent quarters, indicating fluctuations in working capital management efficiency. It is crucial for the company to continually monitor and improve its processes to ensure optimal cash flow generation and liquidity.