Marten Transport Ltd (MRTN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.56% | 26.10% | 18.87% | 18.81% | 19.53% |
| Operating profit margin | 3.45% | 7.96% | 0.44% | -2.41% | -3.49% |
| Pretax margin | 3.77% | 8.30% | 11.41% | 11.48% | 10.68% |
| Net profit margin | 2.79% | 6.22% | 8.73% | 8.77% | 7.95% |
Marten Transport Ltd's profitability ratios demonstrate fluctuations over the five-year period:
1. Gross Profit Margin:
- It has shown a slight decline from 19.53% in 2020 to 18.81% in 2021 and 18.87% in 2022.
- There was a significant improvement in 2023, reaching 26.10%, indicating better control over direct costs.
- However, there was a sharp decline to 13.56% in 2024, which could indicate pricing pressures or increased cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin was negative in 2020 and 2021, at -3.49% and -2.41% respectively, indicating operational inefficiencies.
- It turned positive in 2022 at 0.44% and showed improvement to 7.96% in 2023 before dropping to 3.45% in 2024, suggesting varying levels of operational performance.
3. Pretax Margin:
- This ratio remained relatively stable over the years, with values of 10.68% in 2020, 11.48% in 2021, 11.41% in 2022, 8.30% in 2023, and 3.77% in 2024.
- The decline in 2024 may indicate increased expenses or other factors impacting profitability before tax.
4. Net Profit Margin:
- A similar trend is observed in the net profit margin, with values of 7.95% in 2020, 8.77% in 2021, 8.73% in 2022, 6.22% in 2023, and 2.79% in 2024.
- The decrease in 2024 could be attributed to lower revenues, higher expenses, or other factors affecting the bottom line.
In conclusion, while some profitability ratios have fluctuated, indicating varying levels of efficiency and control over costs, it is important for Marten Transport Ltd to closely monitor and analyze the underlying factors driving these changes to sustain and improve its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.43% | 9.10% | 0.58% | -2.69% | -3.67% |
| Return on assets (ROA) | 2.78% | 7.11% | 11.43% | 9.81% | 8.36% |
| Return on total capital | 3.68% | 10.10% | 18.46% | 14.64% | 13.35% |
| Return on equity (ROE) | 3.51% | 9.29% | 15.68% | 13.11% | 11.20% |
Marten Transport Ltd's profitability ratios show mixed performance over the five-year period. The Operating Return on Assets (Operating ROA) improved from negative values in 2020 and 2021 to 9.10% in 2023, indicating the company's ability to generate income from its assets. However, there was a slight decline to 3.43% in 2024.
The Return on Assets (ROA) fluctuated, peaking at 11.43% in 2022 but dropping to 2.78% in 2024. This suggests that the company's efficiency in utilizing its assets to generate profits varied during the period.
Return on Total Capital exhibited a similar trend, increasing from 13.35% in 2020 to 18.46% in 2022 before falling to 3.68% in 2024. This ratio evaluates the company's overall efficiency in generating returns from its total invested capital.
Return on Equity (ROE) also showed fluctuations, with the highest value of 15.68% in 2022 and the lowest of 3.51% in 2024. ROE reflects the company's profitability in relation to shareholders' equity, indicating the return earned on each dollar of equity investment.
Overall, while there were periods of improvement in profitability ratios, the downward trend in some ratios in the later years suggests a need for Marten Transport Ltd to focus on enhancing operational efficiency and maximizing returns on its assets and capital to ensure sustainable profitability in the future.