Marten Transport Ltd (MRTN)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 963,708 1,131,460 1,263,880 973,644 874,374
Total current assets US$ in thousands 138,511 196,582 235,840 186,949 175,658
Total current liabilities US$ in thousands 93,519 110,242 124,310 93,559 89,794
Working capital turnover 21.42 13.10 11.33 10.43 10.18

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $963,708K ÷ ($138,511K – $93,519K)
= 21.42

Marten Transport Ltd has shown a consistent improvement in its working capital turnover over the last five years. The trend indicates that the company has become more efficient in utilizing its working capital to generate sales revenue.

The working capital turnover ratio has increased from 10.18 in December 2020 to 21.42 in December 2024. This suggests that for every dollar invested in working capital, the company is generating $21.42 in sales revenue by the end of 2024.

The progressive improvement in this ratio signifies that Marten Transport Ltd has been able to manage its working capital effectively, indicating better liquidity and operational efficiency. This trend is usually viewed positively by investors and analysts as it demonstrates the company's strong financial management and potential for growth.