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.