Marten Transport Ltd (MRTN)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 963,708 1,001,498 1,043,670 1,083,104 1,131,455 1,185,817 1,230,727 1,274,620 1,263,878 1,208,170 1,135,002 1,037,879 973,644 934,101 898,832 878,774 874,374 864,226 863,188 862,894
Total current assets US$ in thousands 138,511 170,275 219,570 214,022 196,582 224,586 231,959 243,912 235,840 225,309 237,883 220,034 186,949 211,944 201,940 201,058 175,658 192,546 194,722 159,547
Total current liabilities US$ in thousands 93,519 116,749 118,976 111,442 110,242 121,644 131,020 119,602 124,310 125,457 130,717 109,382 93,559 152,271 106,989 97,851 89,794 87,947 87,579 91,126
Working capital turnover 21.42 18.71 10.38 10.56 13.10 11.52 12.19 10.25 11.33 12.10 10.59 9.38 10.43 15.65 9.47 8.51 10.18 8.26 8.06 12.61

December 31, 2024 calculation

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

The working capital turnover of Marten Transport Ltd has fluctuated over the specified time period. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. A higher ratio indicates better efficiency in managing working capital.

From March 31, 2020, to September 30, 2021, the working capital turnover ranged between 8.06 and 15.65, showing variable efficiency in utilizing working capital during this period.

However, following a peak at 15.65 on September 30, 2021, the ratio decreased but remained relatively stable between 9.38 and 13.10 until December 31, 2023. This downward trend could suggest a potential decrease in the company's efficiency in utilizing working capital to generate sales.

Notably, there was a significant increase in the working capital turnover ratio on September 30, 2024, reaching 18.71, and further rising to 21.42 on December 31, 2024. This substantial increase may indicate improved efficiency in utilizing working capital to support sales growth during this period.

Overall, the working capital turnover ratio of Marten Transport Ltd has shown variability, with some periods of stronger efficiency in utilizing working capital than others, highlighting the importance of closely monitoring working capital management to optimize operational performance.