Marten Transport Ltd (MRTN)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	5.24	—	—	—	4.48	—	—	—	—	—	—	—	3.53	—	—	—	3.48	—	—	—
Days of sales outstanding (DSO)	days	37.37	39.87	36.25	35.34	36.94	38.98	45.69	46.12	39.73	41.38	39.72	38.64	36.58	35.32	40.80	44.14	44.05	39.07	40.50	40.95
Number of days of payables	days	30.46	34.38	29.14	33.46	30.82	37.18	43.80	28.11	20.38	34.84	41.27	33.64	26.93	26.49	28.84	39.15	23.48	25.66	20.38	14.23
Cash conversion cycle	days	12.15	5.49	7.10	1.88	10.61	1.80	1.88	18.01	19.35	6.54	-1.54	5.00	13.18	8.83	11.96	4.99	24.04	13.41	20.12	26.72

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.24 + 37.37 – 30.46
= 12.15

The cash conversion cycle of Marten Transport, Ltd. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 37.37 days, which decreased from Q3 2023 where it was 39.87 days. This suggests that the company improved its efficiency in converting its investments in inventory and receivables into cash during this period. Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), the cash conversion cycle slightly decreased from 36.94 days to 37.37 days.

Overall, the trend in Marten Transport's cash conversion cycle appears to have been relatively stable over the past eight quarters, with some fluctuations seen quarter over quarter. The company should continue to monitor and manage its working capital effectively to optimize its cash conversion cycle and enhance its overall liquidity and financial performance.