Heartland Express Inc (HTLD)

Short-term

Turnover ratios

Inventory turnover ratio provides insight into how efficiently a company manages its inventory. However, the data for Heartland Express, Inc. does not provide information on this ratio over the specified years.

Receivables turnover ratio indicates how many times a company collects its average accounts receivable balance during a period. In the case of Heartland Express, Inc., there has been a varying trend in receivables turnover ratio over the years, with values ranging from 6.77 to 11.61. The higher the ratio, the more efficiently the company is collecting its receivables.

Payables turnover ratio, unfortunately, is not available in the data provided.

Working capital turnover ratio measures how effectively a company generates revenue from its working capital. Heartland Express, Inc. shows an increasing trend in the working capital turnover ratio over the years, indicating improved efficiency in utilizing its working capital to generate sales. The increasing values from 2019 to 2023 suggest the company is utilizing its working capital more effectively to support its operations and generate revenue.

In summary, the analysis of Heartland Express, Inc.'s activity ratios shows varying trends in receivables turnover and a positive trend in working capital turnover over the specified years, reflecting the company's efficiency in managing receivables and utilizing working capital to drive revenue generation.

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Average number of days

Based on the provided data for Heartland Express, Inc., the Days of Inventory on Hand (DOH) ratio is not available for analysis, as the values are missing for all the years.

The Days of Sales Outstanding (DSO) ratio indicates the average number of days it takes for the company to collect revenue after making a sale. The trend for DSO over the past five years shows fluctuations, with the ratio decreasing from 53.90 days in 2022 to 34.13 days in 2023, indicating an improvement in the company's efficiency in collecting receivables.

Unfortunately, the Number of Days of Payables data was not provided for analysis.

In conclusion, Heartland Express, Inc. should continue to monitor and manage its Days of Sales Outstanding to ensure efficient collection of receivables, which can have a positive impact on its liquidity and cash flow management. Additionally, it would be beneficial for the company to provide the missing data for Days of Inventory on Hand and Number of Days of Payables for a more comprehensive analysis of its activity ratios.

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Long-term

The long-term activity ratios of Heartland Express, Inc. reflect the company's efficiency in generating sales and managing its assets over the past five years. The fixed asset turnover ratio has shown improvement over the period, increasing from 1.13 in 2019 to 1.36 in 2023. This indicates that the company is generating $1.36 in sales for every dollar invested in fixed assets, showing an efficient utilization of property, plant, and equipment for revenue generation.

On the other hand, the total asset turnover ratio has also displayed an upward trend, albeit with fluctuations. It has increased from 0.66 in 2019 to 0.80 in 2023. This implies that the company is generating $0.80 in sales for every dollar of total assets, signifying the effectiveness of the company in utilizing all its assets to generate revenue.

Overall, the improving trend in both fixed asset turnover and total asset turnover ratios reflects Heartland Express, Inc.'s ability to efficiently manage its assets for revenue generation, which is a positive sign for the company's long-term operational performance and potential for growth.