Marten Transport Ltd (MRTN)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Current ratio		1.48	1.78	1.90	2.00	1.96

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $138,511K ÷ $93,519K
= 1.48

Based on the data provided, Marten Transport Ltd's current ratio has shown some fluctuation over the five-year period. The current ratio is used to assess a company's short-term liquidity and its ability to cover its short-term obligations with its current assets.

Marten Transport Ltd's current ratio was 1.96 as of December 31, 2020, indicating that the company had $1.96 in current assets for every $1 in current liabilities. This ratio improved slightly to 2.00 by December 31, 2021, suggesting a stronger ability to meet its short-term obligations.

However, the current ratio decreased to 1.90 by December 31, 2022, and further dropped to 1.78 by December 31, 2023. These decreases may indicate potential liquidity challenges or difficulties in managing short-term obligations effectively.

By December 31, 2024, the current ratio declined significantly to 1.48, signaling a potential red flag regarding the company's short-term financial health. A current ratio below 2.00 may raise concerns about the company's ability to cover its short-term liabilities using its current assets efficiently.

In conclusion, Marten Transport Ltd's current ratio has shown a mixed trend over the five-year period, with periods of improvement and decline. It is important for stakeholders to monitor this ratio closely to assess the company's short-term liquidity position and financial health accurately.