Marten Transport Ltd (MRTN)

Liquidity ratios

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
Current ratio 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 2.02 1.74 2.26 2.43
Quick ratio 1.53 1.62 1.55 1.84 1.68 1.60 1.61 1.81 1.74 1.25 1.67 1.86 1.71 1.95 1.96 1.54 1.75 1.52 2.03 2.20
Cash ratio 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 0.41 0.48 0.97 1.08

Marten Transport, Ltd. has consistently maintained solid liquidity ratios over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from 1.77 to 2.04, peaking in Q1 2023. This indicates that Marten Transport has had more than enough current assets to meet its short-term obligations.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has mirrored the trend of the current ratio, with a range of 1.77 to 2.04 over the same period.

The cash ratio, which specifically looks at the company's ability to cover its current liabilities with its cash and cash equivalents, has seen some fluctuations but generally remains relatively healthy. The cash ratio has ranged from 0.63 to 1.01, showing that Marten Transport has maintained a sufficient level of cash to meet its short-term obligations.

Overall, Marten Transport's liquidity ratios indicate that the company has been effectively managing its short-term liquidity needs and has remained in a strong financial position to meet its obligations as they come due.

Additional liquidity measure

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
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

The cash conversion cycle of Marten Transport, Ltd. has shown fluctuations over the past eight quarters. It measures the time it takes for the company to convert its investments in inventory and other resources into cash from sales.

In Q4 2023, the cash conversion cycle decreased to 37.37 days from 39.87 days in Q3 2023, indicating an improvement in the efficiency of the company's working capital management. This was a positive trend for the company as it suggests faster inventory turnover and collection of receivables.

Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), the company managed to reduce its cash conversion cycle from 36.94 days to 37.37 days. This improvement suggests that Marten Transport has become more efficient in managing its working capital over the year.

Looking at the overall trend, the cash conversion cycle of Marten Transport has generally decreased over the past two years, indicating that the company has been managing its resources more effectively. However, it is important to monitor this metric consistently to ensure that the improvements are sustainable and in line with industry benchmarks.