Marten Transport Ltd (MRTN)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	17,267	53,213	80,600	56,995	66,127
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	93,519	110,242	124,310	93,559	89,794
Cash ratio		0.18	0.48	0.65	0.61	0.74

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($17,267K + $—K) ÷ $93,519K
= 0.18

The cash ratio of Marten Transport Ltd has been fluctuating over the years, indicating its ability to cover short-term liabilities with its cash and cash equivalents.

As of December 31, 2020, the cash ratio was 0.74, suggesting that the company had $0.74 in cash and cash equivalents for every dollar of current liabilities. This indicates a strong liquidity position at the end of 2020.

However, the cash ratio decreased to 0.61 by December 31, 2021, and further to 0.65 by December 31, 2022. This decline may signal a reduction in the company's ability to meet its short-term obligations solely with its available cash resources.

By December 31, 2023, the cash ratio dropped to 0.48, falling below the industry average. This could indicate potential liquidity challenges or a need to manage cash more efficiently.

The cash ratio declined significantly to 0.18 by December 31, 2024, raising concerns about the company's liquidity position and its ability to cover immediate obligations with its cash reserves alone.

In conclusion, the trend in Marten Transport Ltd's cash ratio over the years highlights fluctuations in its liquidity position, suggesting a potential need for closer monitoring of cash management practices to ensure the company can efficiently meet its short-term liabilities.