Marten Transport Ltd (MRTN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 53,213 | 80,600 | 56,995 | 66,127 | 31,461 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 115,857 | 127,920 | 105,974 | 87,628 | 101,767 |
| Total current liabilities | US$ in thousands | 110,242 | 124,310 | 93,559 | 89,794 | 76,326 |
| Quick ratio | 1.53 | 1.68 | 1.74 | 1.71 | 1.75 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($53,213K
+ $—K
+ $115,857K)
÷ $110,242K
= 1.53
The quick ratio of Marten Transport, Ltd. has shown a decreasing trend over the past five years, declining from 1.91 in 2019 to 1.68 in 2023. Despite the decrease, the quick ratio remains above 1 in all years, indicating that the company has a sufficient level of liquid assets to cover its short-term obligations.
The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio above 1 suggests that Marten Transport, Ltd. can easily cover its short-term obligations without relying heavily on inventory, which is a positive indicator of financial health.
Although the quick ratio has decreased slightly over the years, it is still at a healthy level, indicating that the company maintains good liquidity and is capable of meeting its short-term financial obligations without facing significant liquidity risk. Further analysis of the company's current assets and liabilities may provide additional insights into its overall financial strength.
Peer comparison
Dec 31, 2023