Marten Transport Ltd (MRTN)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	437,151	443,631	362,467	349,460	314,174
Inventory	US$ in thousands	6,286	5,427	4,375	3,372	3,394
Inventory turnover		69.54	81.75	82.85	103.64	92.57

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $437,151K ÷ $6,286K
= 69.54

Based on the data provided for Marten Transport, Ltd., the inventory turnover ratio for the years 2019 to 2023 shows a consistent value of 0.00. A consistent inventory turnover ratio of 0.00 indicates that the company is not effectively managing its inventory levels or is facing challenges in selling its inventory. A low or zero inventory turnover ratio may suggest overstocking, obsolete inventory, or issues with demand forecasting.

Further analysis and investigation into the company's inventory management practices, sales strategy, and supply chain efficiency are warranted to understand the reasons behind the consistently low inventory turnover ratio. It is crucial for the company to improve its inventory turnover ratio to ensure optimal utilization of resources, minimize carrying costs, and enhance profitability.