Marten Transport Ltd (MRTN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 28,249 | 76,498 | 129,965 | 95,394 | 82,795 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 767,922 | 757,386 | 703,919 | 651,677 | 620,333 |
| Return on total capital | 3.68% | 10.10% | 18.46% | 14.64% | 13.35% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $28,249K ÷ ($—K + $767,922K)
= 3.68%
Based on the provided data, Marten Transport Ltd's return on total capital has shown fluctuations over the years.
- In December 31, 2020, the return on total capital was 13.35%. This indicates that for every dollar of total capital invested in the company, they generated a return of 13.35%.
- The return on total capital increased to 14.64% by December 31, 2021, reflecting an improvement in the company's ability to generate profits relative to its total capital.
- By December 31, 2022, Marten Transport Ltd's return on total capital further increased to 18.46%, indicating a significant improvement in capital efficiency and profitability.
- However, there was a decline in performance by December 31, 2023, with the return on total capital dropping to 10.10%. This suggests a decrease in profitability relative to the total capital invested.
- The trend continued in December 31, 2024, with the return on total capital falling to 3.68%, indicating a significant drop in the company's ability to generate returns on its total capital.
Overall, the fluctuating trend in Marten Transport Ltd's return on total capital highlights the company's varying efficiencies in utilizing its capital resources to generate profits. Further analysis would be necessary to understand the underlying reasons for these fluctuations and to identify areas for improvement.
Peer comparison
Dec 31, 2024