Marten Transport Ltd (MRTN)

Net profit margin

		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
Net income (ttm)	US$ in thousands	70,373	83,488	95,536	105,323	110,354	109,570	105,198	94,955	85,428	80,302	77,072	73,788	69,500	65,644	64,187	61,243	61,071	61,060	59,730	58,242
Revenue (ttm)	US$ in thousands	1,131,455	1,185,817	1,230,727	1,274,620	1,263,878	1,208,170	1,135,002	1,037,879	973,644	934,101	898,832	878,774	874,374	864,226	863,188	862,894	843,271	830,047	814,723	799,657
Net profit margin		6.22%	7.04%	7.76%	8.26%	8.73%	9.07%	9.27%	9.15%	8.77%	8.60%	8.57%	8.40%	7.95%	7.60%	7.44%	7.10%	7.24%	7.36%	7.33%	7.28%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $70,373K ÷ $1,131,455K
= 6.22%

Marten Transport, Ltd.'s net profit margin has exhibited a declining trend over the recent quarters, as indicated by the successive decreases from 8.73% in Q4 2022 to 6.22% in Q4 2023. This downward trajectory suggests potential challenges in the company's profitability. Although the net profit margins in Q4 2023 and Q3 2023 were above 6%, indicating that the company is still generating profits relative to its revenue, the declining trend warrants further investigation.

The highest net profit margin recorded in the analyzed period was 9.27% in Q2 2022, indicating a peak level of profitability during that quarter. Subsequently, the margins experienced a gradual decline, with fluctuations in between but showing an overall downward trend.

It is important for stakeholders to closely monitor Marten Transport, Ltd.'s profit margins and investigate the factors contributing to the declining trend. Identifying and addressing the root causes of the decrease in profitability will be crucial for the company to sustain its financial health and long-term success.