Murphy USA Inc (MUSA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 117,800 | 60,500 | 256,400 | 163,600 | 280,300 |
| Short-term investments | US$ in thousands | 7,100 | 17,900 | — | — | — |
| Receivables | US$ in thousands | 336,700 | 281,700 | 195,700 | 168,800 | 172,900 |
| Total current liabilities | US$ in thousands | 872,800 | 854,200 | 675,300 | 531,100 | 505,000 |
| Quick ratio | 0.53 | 0.42 | 0.67 | 0.63 | 0.90 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($117,800K
+ $7,100K
+ $336,700K)
÷ $872,800K
= 0.53
The quick ratio of Murphy USA Inc has shown fluctuations over the past five years, ranging from 0.48 to 0.96. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. In this case, the quick ratio indicates that Murphy USA Inc may have had challenges in the past few years in meeting its short-term obligations using its quick assets.
A quick ratio of less than 1 suggests that the company may have difficulty fulfilling its short-term liabilities without relying on selling inventory. A higher quick ratio generally indicates a stronger liquidity position.
In the most recent year, the quick ratio is reported at 0.56, which is below 1 and lower than the previous year's ratio of 0.70. This decline could signal potential liquidity challenges or a change in the company's liquidity management strategies. It is important for investors and stakeholders to monitor this ratio over time to assess the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023