Marten Transport Ltd (MRTN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 17,267 | 53,213 | 80,600 | 56,995 | 66,127 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 93,519 | 110,242 | 124,310 | 93,559 | 89,794 |
| Quick ratio | 0.18 | 0.48 | 0.65 | 0.61 | 0.74 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($17,267K
+ $—K
+ $—K)
÷ $93,519K
= 0.18
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. For Marten Transport Ltd, the trend in the quick ratio over the past five years shows a decrease from 0.74 in December 2020 to 0.18 in December 2024.
A quick ratio below 1 indicates that the company may have difficulties meeting its short-term financial obligations. In Marten Transport Ltd's case, the decreasing trend in the quick ratio raises concerns about the company's liquidity position and its ability to cover its current liabilities with its most liquid assets.
A quick ratio of 0.18 in December 2024 suggests that Marten Transport Ltd may be facing challenges in converting its current assets into cash quickly enough to cover its short-term liabilities. This could indicate potential cash flow constraints or inefficiencies in managing working capital.
Overall, the declining trend in Marten Transport Ltd's quick ratio over the past five years raises red flags regarding the company's liquidity position and highlights the importance of closely monitoring its ability to meet its short-term financial obligations in the future.
Peer comparison
Dec 31, 2024