Marten Transport Ltd (MRTN)

Short-term

Turnover ratios

The activity ratios for Marten Transport, Ltd. provide insight into how efficiently the company is managing its assets and liabilities to generate revenue.

1. Inventory turnover: The inventory turnover ratio for Q4 2023 and Q4 2022 is 0.00, indicating that the company did not sell any inventory during those quarters. This could signal potential issues with inventory management or sales performance.

2. Receivables turnover: The receivables turnover ratio shows how many times a company collects its average accounts receivable balance during a specific period. Marten Transport's receivables turnover ratio has been relatively stable, ranging from 9.16 to 10.33 over the past eight quarters. This suggests that the company is efficient in collecting payments from its customers.

3. Payables turnover: The payables turnover ratio measures how often a company pays its suppliers during a period. The data provided indicates that Marten Transport's payables turnover ratio is consistently at 0.00 across all quarters, suggesting that the company does not have significant payables or is not actively managing its payables turnover.

4. Working capital turnover: The working capital turnover ratio measures how effectively a company is using its working capital to generate revenue. Marten Transport's working capital turnover has varied between 9.38 and 13.10 over the past eight quarters, indicating that the company is relatively efficient in using its working capital to generate sales.

Overall, the activity ratios suggest that Marten Transport, Ltd. is efficient in managing its receivables and working capital. However, the company's zero inventory turnover and payables turnover ratios may warrant further investigation into its inventory management and payment practices.

---

Average number of days

Based on the data provided, we can analyze the activity ratios of Marten Transport, Ltd. as follows:

1. Days of Inventory on Hand (DOH): Unfortunately, specific data regarding the number of days of inventory on hand is not available for all quarters. This ratio indicates how many days it takes for the company to sell its inventory. Without this data, it is challenging to assess Marten Transport's efficiency in managing its inventory levels.

2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding ratio shows the average number of days it takes for the company to collect its accounts receivable. Over the four quarters provided, Marten Transport, Ltd.'s DSO has fluctuated. It decreased from 36.94 days in Q4 2022 to 35.34 days in Q1 2023, indicating a slight improvement in collecting receivables efficiently. However, it is essential to monitor this metric closely to ensure timely collections and healthy cash flow management.

3. Number of Days of Payables: Unfortunately, the specific data regarding the number of days of payables is not available for all quarters. This ratio typically indicates how long it takes the company to pay its suppliers. Without this information, it is challenging to evaluate Marten Transport's payment practices and working capital management.

In conclusion, while the Days of Sales Outstanding ratio provides some insight into Marten Transport, Ltd.'s efficiency in collecting receivables, the lack of data on inventory and payables hinders a comprehensive analysis of the company's overall activity ratios. It would be beneficial for stakeholders to keep a close eye on these metrics to assess the company's efficiency in managing working capital effectively.

---

Long-term

Marten Transport, Ltd.'s long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has been relatively stable over the past eight quarters, with a range of 1.43 to 1.74. This indicates that, on average, for every dollar of fixed assets, the company generated between $1.43 and $1.74 in sales. A higher fixed asset turnover ratio suggests more efficient utilization of fixed assets to generate revenue.

In comparison, the total asset turnover ratio has also been fairly consistent, ranging from 1.14 to 1.31 over the same period. This ratio reflects the company's ability to generate sales from all its assets, including both fixed and current assets. A total asset turnover ratio of 1.14 to 1.31 indicates that, on average, the company generated between $1.14 and $1.31 in sales for every dollar of total assets owned.

Overall, the trend in both fixed asset turnover and total asset turnover ratios for Marten Transport, Ltd. suggests that the company has been effectively managing and utilizing its assets to generate revenue over the past eight quarters.