Marten Transport Ltd (MRTN)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 53,213 80,600 56,995 66,127 31,461
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 110,242 124,310 93,559 89,794 76,326
Cash ratio 0.48 0.65 0.61 0.74 0.41

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($53,213K + $—K) ÷ $110,242K
= 0.48

The cash ratio of Marten Transport, Ltd. has fluctuated over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet its short-term obligations without relying on external sources of financing.

In 2020, the cash ratio was at its highest at 0.89, indicating the company had a significant amount of cash relative to its short-term liabilities. However, in the following years, the cash ratio decreased to 0.77 in 2021 and further to 0.63 in 2023. This downward trend suggests that Marten Transport may have started utilizing its cash reserves for other purposes or experienced a decrease in cash holdings relative to its short-term obligations.

Although the cash ratio has decreased over the years, it is still above 0.5, which generally indicates that the company has enough cash to cover at least 50% of its current liabilities. Investors and creditors may consider a cash ratio above 1 as ideal, as it suggests the company can cover all its current liabilities with its cash on hand.

Overall, while the decreasing trend in the cash ratio of Marten Transport, Ltd. raises some concerns about its liquidity position, the company still maintains a reasonable ability to meet its short-term obligations with its available cash and cash equivalents. It would be important for stakeholders to monitor the cash position of the company and assess any potential impact on its financial health and stability.


Peer comparison

Dec 31, 2023