Marten Transport Ltd (MRTN)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,131,460	1,263,880	973,644	874,374	843,271
Receivables	US$ in thousands	115,857	127,920	105,974	87,628	101,767
Receivables turnover		9.77	9.88	9.19	9.98	8.29

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,131,460K ÷ $115,857K
= 9.77

The receivables turnover of Marten Transport, Ltd. has been relatively stable over the past five years, ranging between 8.29 and 9.98. This ratio measures how efficiently the company is able to collect payments from its customers. A higher receivables turnover ratio indicates that the company is collecting payments more frequently within a given period.

In the most recent year, the receivables turnover was 9.77, showing a slight decrease from the previous year's ratio of 9.88. This minor decrease could suggest a slightly slower pace in collecting payments from customers in the latest period. However, the overall trend over the five-year period indicates that Marten Transport has been effectively managing its accounts receivable and collecting payments efficiently.

It is essential for Marten Transport to maintain a healthy receivables turnover ratio to ensure a steady and timely inflow of cash, as well as to minimize the risk of bad debts. By consistently monitoring and managing their accounts receivable turnover, the company can continue to ensure efficient cash flow management and financial stability.