Marten Transport Ltd (MRTN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.48 | 1.46 | 1.85 | 1.92 | 1.78 | 1.85 | 1.77 | 2.04 | 1.90 | 1.80 | 1.82 | 2.01 | 2.00 | 1.39 | 1.89 | 2.05 | 1.96 | 2.19 | 2.22 | 1.75 |
| Quick ratio | 0.18 | 0.37 | 0.65 | 0.66 | 0.48 | 0.56 | 0.61 | 0.81 | 0.65 | 0.57 | 0.52 | 0.61 | 0.61 | 0.55 | 0.75 | 0.91 | 0.74 | 1.00 | 0.86 | 0.40 |
| Cash ratio | 0.18 | 0.37 | 0.65 | 0.66 | 0.48 | 0.56 | 0.61 | 0.81 | 0.65 | 0.57 | 0.52 | 0.61 | 0.61 | 0.55 | 0.75 | 0.91 | 0.74 | 1.00 | 0.86 | 0.40 |
Based on the provided data on Marten Transport Ltd's liquidity ratios, the company's current ratio has fluctuated over the years but generally remained above 1, indicating an ability to meet its short-term obligations. The current ratio peaked at 2.22 as of June 30, 2020, but has since decreased to 1.48 as of December 31, 2024, showing some potential challenges in short-term liquidity management.
In terms of the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, Marten Transport Ltd has shown a trend of having a lower quick ratio compared to the current ratio. The quick ratio ranged from 0.18 on December 31, 2024, to 1.00 on September 30, 2020. The decreasing trend in the quick ratio could indicate potential concerns about the company's ability to meet its immediate liabilities without relying on inventory.
Lastly, the cash ratio, which measures a company's ability to cover its short-term liabilities using only cash and cash equivalents, mirrors the trends seen in the quick ratio. The cash ratio for Marten Transport Ltd ranged from 0.18 on December 31, 2024, to 1.00 on September 30, 2020. The decreasing trend in the cash ratio reflects potential challenges in the company's ability to cover its short-term obligations solely with cash reserves.
Overall, while Marten Transport Ltd has generally maintained a current ratio above 1, indicating an ability to cover short-term obligations, the decreasing trends in the quick ratio and cash ratio may suggest potential challenges in liquidity management and highlight the importance of closely monitoring and managing the company's short-term liquidity position.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 2.39 | 0.00 | 0.00 | 0.00 | 1.93 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.75 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of Marten Transport Ltd has shown fluctuations over the past few years. As of December 31, 2020, the company's cash conversion cycle was 1.75 days, indicating that it took the company 1.75 days on average to convert its investments in inventory into cash inflows from sales.
Subsequently, the cash conversion cycle returned to 0.00 days in the following periods up to December 31, 2022, implying efficient management of working capital during these periods with minimal delays in converting inventory into cash.
However, as of December 31, 2023, the cash conversion cycle slightly increased to 2.39 days, suggesting a potential slowdown in the company's ability to convert its inventory into cash. This increase may be attributed to various factors such as changes in sales patterns, inventory management practices, or payment terms with customers.
Overall, while the company has demonstrated efficient working capital management in most periods with a relatively low or zero cash conversion cycle, the slight increase observed in December 31, 2023, should be further monitored to assess its impact on the company's liquidity and operational efficiency.