Marten Transport Ltd (MRTN)

Payables 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
Payables	US$ in thousands	36,516	37,299	20,150	25,702	22,917
Payables turnover		11.97	11.89	17.99	13.60	13.71

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $437,151K ÷ $36,516K
= 11.97

The payables turnover ratio of Marten Transport, Ltd. has consistently been reported as 0.00 for the past five years, indicating that the company is not effectively managing its accounts payable. This ratio measures how many times a company pays off its accounts payable balance within a specific period. A low or zero payables turnover ratio may suggest that the company is not paying its creditors promptly or efficiently utilizing trade credit terms. In the case of Marten Transport, Ltd., the consistent 0.00 payables turnover over the years may raise concerns about the company's liquidity management and supplier relationships. Further analysis and investigation into the company's accounts payable processes and financial health are recommended to identify the reasons behind this pattern and implement improvements if necessary.