Marten Transport Ltd (MRTN)

Short-term

Turnover ratios

Marten Transport Ltd's activity ratios provide insight into how efficiently the company manages its assets and liabilities.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced during a period. Marten Transport Ltd's inventory turnover has trended downwards over the years, from 208.66 in 2020 to 133.02 in 2023, and the 2024 data is missing. This decline suggests a potential issue with inventory management efficiency, as inventory is being sold less frequently in recent years.

2. Receivables Turnover:
- The receivables turnover ratio reflects how many times a company collects its average accounts receivable balance during a period. However, in the case of Marten Transport Ltd, there is no data available for receivables turnover from 2020 to 2024, making it difficult to assess the efficiency of the company in collecting payments from its customers.

3. Payables Turnover:
- The payables turnover ratio evaluates how many times a company pays off its average accounts payable during a period. Similar to receivables turnover, there is no available data for payables turnover for Marten Transport Ltd from 2020 to 2024, making it challenging to evaluate the company's payment practices to suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue. Marten Transport Ltd's working capital turnover has shown an increasing trend from 10.18 in 2020 to 21.42 in 2024. This suggests that the company has been able to generate more sales revenue per unit of working capital over the years, indicating improved efficiency in utilizing its current assets for revenue generation.

In conclusion, while Marten Transport Ltd has shown improvements in working capital turnover, the lack of data for receivables turnover and payables turnover makes it challenging to evaluate the company's efficiency in managing accounts receivable and payable. The declining trend in inventory turnover raises concerns about inventory management efficiency that the company may need to address to improve overall operational performance.

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Average number of days

Marten Transport Ltd's activity ratios provide insights into how efficiently the company manages its inventory and accounts receivable.

1. Days of Inventory on Hand (DOH): Marten Transport Ltd's DOH has shown a slight increase from 1.75 days in 2020 to 2.74 days in 2023, indicating that the company is holding onto its inventory for a longer period. However, in 2024, there is no data available to analyze the trend further. Generally, a lower DOH is preferred as it signifies that inventory is being managed efficiently and goods are moving quickly, minimizing holding costs.

2. Days of Sales Outstanding (DSO): The DSO data is not available for any of the years analyzed, which could mean that the company does not extend credit to its customers or has a quick turnover of accounts receivable. Without this information, it is challenging to assess how quickly the company collects payments from its customers and whether there are potential issues with credit management.

3. Number of Days of Payables: Similarly, there is no data provided for the number of days of payables, which would have given insights into how long the company takes to pay its suppliers. A longer payable period could indicate better cash flow management, but it may also strain relationships with suppliers if not managed effectively.

Overall, while the DOH shows a slight increase over the years, the lack of data for DSO and payables limits the ability to assess Marten Transport Ltd's overall efficiency in managing its working capital effectively. Additional information would be needed to provide a more comprehensive analysis of the company's activity ratios.

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Long-term

Long-term activity ratios provide insights into how effectively a company is utilizing its assets to generate sales over an extended period. In the case of Marten Transport Ltd, we have two key ratios to examine: Fixed Asset Turnover and Total Asset Turnover.

Fixed Asset Turnover Ratio:
- The Fixed Asset Turnover ratio indicates how efficiently a company is using its fixed assets (such as property, plant, and equipment) to generate sales.
- Marten Transport Ltd's Fixed Asset Turnover ratio has shown an increasing trend from 1.34 in December 2020 to 1.43 in December 2021 and further to 1.73 in December 2022. This suggests that the company is becoming more efficient in utilizing its fixed assets to generate revenue.
- However, data is missing for December 2023 and December 2024, making it difficult to assess the ongoing trend and the impact on the company's fixed asset utilization in those years.

Total Asset Turnover Ratio:
- The Total Asset Turnover ratio measures the company's ability to generate sales from its total assets, including both fixed and current assets.
- For Marten Transport Ltd, the Total Asset Turnover ratio increased from 1.05 in December 2020 to 1.12 in December 2021 and further to 1.31 in December 2022. This indicates an improvement in the company's overall asset efficiency in generating revenue.
- However, there was a slight decline in the ratio to 1.14 in December 2023 and a more noticeable drop to 0.99 in December 2024. This could suggest a decrease in the company's ability to generate sales from its total assets in those years.

Overall, the increasing trend in the Fixed Asset Turnover ratio up to 2022 indicates improved efficiency in utilizing fixed assets, while the fluctuation in the Total Asset Turnover ratio highlights some variability in the company's overall asset utilization efficiency over the years analyzed. It would be important to further investigate the reasons behind the fluctuations and assess the impact on Marten Transport Ltd's operational performance and profitability.