Marten Transport Ltd (MRTN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		9.77	9.16	10.07	10.33	9.88	9.36	7.99	7.91	9.19	8.82	9.19	9.45	9.98	10.33	8.95	8.27	8.29	9.34	9.01	8.91
DSO	days	37.37	39.87	36.25	35.34	36.94	38.98	45.69	46.12	39.73	41.38	39.72	38.64	36.58	35.32	40.80	44.14	44.05	39.07	40.50	40.95

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.77
= 37.37

The Days Sales Outstanding (DSO) ratio for Marten Transport, Ltd. has exhibited some fluctuations over the past eight quarters. In Q4 2023, the DSO was 37.37 days, showing a slight decrease compared to the previous quarter. This indicates that, on average, it took the company approximately 37 days to collect its accounts receivable during the fourth quarter of 2023.

Overall, the trend in DSO appears relatively stable, with some variability from quarter to quarter. The company's DSO has generally ranged between 35 to 40 days over the past two years, suggesting a consistent collection period for its accounts receivable. Lower DSO values typically indicate more efficient accounts receivable management, as the company is able to collect payments from customers more quickly.

It is important for Marten Transport, Ltd. to monitor its DSO closely to ensure that it maintains an optimal balance between maximizing collections and maintaining good customer relations. By analyzing trends in DSO over time, the company can assess the effectiveness of its credit and collection policies and make necessary adjustments to improve cash flow management.