Marten Transport Ltd (MRTN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 69.54 | 81.75 | 82.85 | 103.64 | 92.57 |
| Receivables turnover | 9.77 | 9.88 | 9.19 | 9.98 | 8.29 |
| Payables turnover | 11.97 | 11.89 | 17.99 | 13.60 | 13.71 |
| Working capital turnover | 13.10 | 11.33 | 10.43 | 10.18 | 10.83 |
Inventory turnover for Marten Transport, Ltd. has consistently been reported as 0.00 for the past five years, indicating that the company is not effectively managing its inventory levels or experiencing challenges in selling its inventory.
Receivables turnover has shown a stable trend over the five-year period, with slight fluctuations. The ratio peaked in 2020 at 9.98 and has remained relatively steady since then, suggesting that Marten Transport is efficient in collecting payments from its customers.
Payables turnover has also been consistently reported as 0.00 over the five years. This may indicate that the company is not effectively managing its payables or could be due to the nature of its industry or payment practices.
Working capital turnover has shown an increasing trend over the years, reaching its highest value of 13.10 in 2023. This indicates that Marten Transport is generating revenue efficiently relative to its working capital, which is a positive sign for the company's operational performance.
Overall, while Marten Transport struggles with inventory management and payables turnover, its efficiency in collecting receivables and generating revenue relative to working capital has been improving over the past five years.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.25 | 4.47 | 4.41 | 3.52 | 3.94 |
| Days of sales outstanding (DSO) | days | 37.37 | 36.94 | 39.73 | 36.58 | 44.05 |
| Number of days of payables | days | 30.49 | 30.69 | 20.29 | 26.84 | 26.62 |
Looking at Marten Transport, Ltd.'s activity ratios, we can see a trend in the efficiency of managing inventory, collecting receivables, and settling payables.
1. Days of Inventory on Hand (DOH):
Unfortunately, there is no data provided for the Days of Inventory on Hand for any of the years, which makes it challenging to assess how quickly Marten Transport is turning over its inventory. A lower number of days would indicate faster inventory turnover and better management of inventory levels.
2. Days of Sales Outstanding (DSO):
The Days of Sales Outstanding has shown a somewhat improving trend over the years, with the number of days to collect receivables decreasing from 44.05 days in 2019 to 37.37 days in 2023. This suggests that Marten Transport has been more efficient in collecting payments from customers, which is a positive sign of liquidity and cash flow management.
3. Number of Days of Payables:
Similar to the Days of Inventory on Hand, there is no data available for the Number of Days of Payables for any of the years. This ratio would have helped assess how long it takes Marten Transport to settle its payables to suppliers, indicating its relationships and liquidity position.
In conclusion, while Marten Transport's management of receivables seems to be improving, the lack of data for inventory and payables ratios limits the complete assessment of the company's overall activity and working capital management efficiency. Further analysis incorporating these missing ratios would provide a more comprehensive view of Marten Transport's operational performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.43 | 1.74 | 1.43 | 1.34 | 1.32 |
| Total asset turnover | 1.14 | 1.31 | 1.12 | 1.05 | 1.06 |
Marten Transport, Ltd.'s long-term activity ratios provide insight into the efficiency with which the company is utilizing its fixed and total assets to generate sales.
The fixed asset turnover has shown fluctuation over the years, ranging from 1.32 in 2019 to 1.74 in 2022. In 2023, the fixed asset turnover decreased to 1.43. A declining fixed asset turnover may indicate that the company is not effectively utilizing its fixed assets to generate sales. However, it's worth noting that the ratio is still above 1, indicating that Marten Transport, Ltd. is generating more in sales than the value of its fixed assets.
On the other hand, the total asset turnover ratio has also varied, with values ranging from 1.05 in 2020 to 1.31 in 2022. In 2023, the total asset turnover ratio decreased to 1.14. The total asset turnover ratio reflects the company's ability to generate sales revenue from its total assets. A higher ratio suggests that the company is effectively using its assets to generate sales.
Overall, while there have been fluctuations in both the fixed asset turnover and total asset turnover ratios, Marten Transport, Ltd. seems to be efficiently utilizing its assets to generate sales revenue. However, management should continue monitoring these ratios to ensure optimal asset utilization and sustained financial performance.