Marten Transport Ltd (MRTN)

Short-term

Turnover ratios

Activity ratios are important measures that provide insight into how effectively a company manages its assets and liabilities to generate revenue. Let's analyze the activity ratios of Marten Transport Ltd based on the provided data:

1. Inventory Turnover:
- Inventory turnover indicates how efficiently the company manages its inventory. Marten Transport Ltd's inventory turnover has fluctuated over the years, with a peak of 208.66 in December 31, 2020, and a decrease to 152.82 in December 31, 2023. A higher turnover ratio generally indicates better inventory management.

2. Receivables Turnover:
- Receivables turnover reflects how efficiently the company collects outstanding receivables from customers. The data shows no specific values for this ratio, indicating that information on customer receivables turnover is not available for analysis.

3. Payables Turnover:
- Payables turnover measures how long it takes the company to pay its suppliers. Similar to receivables turnover, there is no data available for payables turnover, suggesting limited information on the company's payment practices.

4. Working Capital Turnover:
- Working capital turnover ratio assesses how efficiently the company utilizes its working capital to generate sales revenue. Marten Transport Ltd's working capital turnover has varied, showing fluctuations in the effectiveness of working capital utilization. The ratio has generally increased from March 31, 2020, to December 31, 2024, reaching a peak of 21.42 in December 31, 2024. A higher working capital turnover ratio indicates better utilization of working capital.

Overall, based on the available data, Marten Transport Ltd's inventory turnover demonstrates some level of efficiency in managing inventory, while information on receivables turnover and payables turnover is not provided. The working capital turnover has shown fluctuations but generally indicates improvement in working capital utilization over time. Further analysis combining these ratios with other financial metrics would provide a more comprehensive understanding of the company's operational efficiency and financial performance.

---

Average number of days

Based on the provided data for Marten Transport Ltd, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- In December 31, 2020, the company had 1.75 days of inventory on hand, which increased to 1.93 days by December 31, 2022. This indicates that the company is holding inventory for a slightly longer period over these years. However, the data for other periods is not available, making it challenging to assess any trend or make a detailed analysis.

2. Days of Sales Outstanding (DSO):
- The DSO data for all the periods is not available, suggesting that we lack the information to determine the number of days it takes for the company to collect its accounts receivable. Therefore, it is not possible to provide an analysis or trend on this ratio based on the available data.

3. Number of Days of Payables:
- Similar to the previous ratios, data for the number of days of payables is also not present for any of the periods. Without this information, we cannot assess the company's payment practices or its ability to manage its payables effectively.

In conclusion, the limited data available for the activity ratios of Marten Transport Ltd hinders a detailed analysis of its inventory management, accounts receivable collection efficiency, and payables management. More information would be needed to provide a comprehensive assessment of the company's operational efficiency based on these ratios.

---

Long-term

Marten Transport Ltd's fixed asset turnover ratio has shown fluctuating trends over the years, starting at 2.22 in March 2020, reaching a peak of 1.74 in March 2023, and then declining to 1.54 by September 30, 2023. This ratio measures how efficiently the company generates revenue from its fixed assets, such as property, plant, and equipment.

On the other hand, the total asset turnover ratio, which reflects the company's overall efficiency in generating sales from all its assets, has also exhibited variability. It began at 1.05 in March 2020, dipped to 1.02 by June 30, 2021, before gradually increasing to 1.29 by September 30, 2022. However, it then saw a downward trend, dropping to 1.00 by September 30, 2024.

Analyzing these ratios together provides insights into Marten Transport Ltd's ability to utilize both its fixed assets and total assets effectively to generate sales. The trends observed suggest that the company may have experienced fluctuations in its asset utilization efficiency during the period under consideration. Further investigation into the underlying factors driving these changes in activity ratios would be necessary to provide a more comprehensive analysis of Marten Transport Ltd's long-term operational performance.