Marten Transport Ltd (MRTN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.77 | 9.88 | 9.19 | 9.98 | 8.29 | |
| DSO | days | 37.37 | 36.94 | 39.73 | 36.58 | 44.05 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.77
= 37.37
The days of sales outstanding (DSO) for Marten Transport, Ltd. have shown variability over the past five years. In 2023, the DSO was 37.37 days, slightly higher than the 2022 DSO of 36.94 days but lower than the 2021 DSO of 39.73 days. This indicates that the company collects its accounts receivable slightly slower than in the previous year but more efficiently compared to 2021.
Furthermore, looking back to 2020 and 2019, the DSO was 36.58 days and 44.05 days, respectively. The decrease in DSO from 2019 to 2020 suggests an improvement in the company's accounts receivable collection efficiency. However, the increase in DSO from 2020 to 2021 and then the subsequent decrease in 2023 indicate a fluctuating trend in the company's ability to collect outstanding sales.
It is essential for Marten Transport, Ltd. to closely monitor its DSO and implement strategies to ensure timely collection of accounts receivable to maintain healthy cash flows and financial stability.
Peer comparison
Dec 31, 2023