Marten Transport Ltd (MRTN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 61.36% | 64.90% | 62.77% | 60.03% | 62.74% |
| Operating profit margin | 7.96% | 11.34% | 11.47% | 10.66% | 9.07% |
| Pretax margin | 8.30% | 11.41% | 11.48% | 10.68% | 9.21% |
| Net profit margin | 6.22% | 8.73% | 8.77% | 7.95% | 7.24% |
Marten Transport, Ltd. has shown a consistent gross profit margin of 100% over the past five years, indicating the company's ability to efficiently manage its cost of goods sold. However, the operating profit margin has decreased from 10.28% in 2022 to 6.76% in 2023, suggesting a potential increase in operating expenses relative to sales.
Similarly, the pretax margin has also experienced a decline from 11.41% in 2022 to 8.30% in 2023, indicating a decrease in profitability before accounting for taxes. The net profit margin has followed a similar trend, falling from 8.73% in 2022 to 6.22% in 2023, reflecting a decline in overall profitability after all expenses have been taken into account.
Overall, while Marten Transport, Ltd. has consistently maintained a high gross profit margin, the declining trends in operating, pretax, and net profit margins raise concerns about the company's profitability and efficiency in managing its expenses. Further investigation into the reasons behind these margin decreases may be warranted to improve the company's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.10% | 14.84% | 12.83% | 11.21% | 9.60% |
| Return on assets (ROA) | 7.11% | 11.43% | 9.81% | 8.36% | 7.67% |
| Return on total capital | 11.90% | 20.36% | 17.14% | 15.03% | 12.80% |
| Return on equity (ROE) | 9.29% | 15.68% | 13.11% | 11.20% | 10.22% |
Marten Transport, Ltd.'s profitability ratios have shown a mixed trend over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated between 7.72% to 13.46% during the period, indicating the company's ability to generate profits from its assets used in operations. The decreasing trend from 2022 to 2023 suggests a potential decline in operational efficiency.
2. Return on assets (ROA) has also shown some variability, ranging from 7.11% to 11.43%. This metric reflects the company's overall profitability relative to its total assets, with the latest data showing a slight decrease compared to the previous year.
3. Return on total capital, which measures the company's profitability in relation to all sources of funding, has similarly fluctuated between 10.10% to 18.46%. The percentage decrease in 2023 compared to prior years could indicate a decline in overall capital efficiency.
4. Return on equity (ROE), reflective of the company's ability to generate profit from shareholder equity, has varied from 9.29% to 15.68%. The downward trend in ROE from 2022 to 2023 suggests a potential decrease in returns to shareholders' equity.
Overall, while Marten Transport, Ltd. has demonstrated respectable profitability ratios over the years, the recent declines in certain metrics may require further analysis to identify the underlying causes and potential areas for improvement in operational and capital efficiency.