Heartland Express Inc (HTLD)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		10.70	6.77	10.67	11.61	10.46
DSO	days	34.13	53.90	34.20	31.44	34.91

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.70
= 34.13

Days Sales Outstanding (DSO) is a key efficiency ratio that measures the average number of days it takes for a company to collect its accounts receivable. Lower DSO values indicate that a company is collecting its receivables more quickly, which is generally favorable.

Over the past five years, Heartland Express, Inc. has exhibited some fluctuations in its DSO ratio. In 2020, the DSO was relatively low at 31.44 days, indicating efficient accounts receivable management. However, in 2022, the DSO increased significantly to 53.90 days, suggesting a slower collection process that may have implications for cash flow.

In 2021 and 2019, the DSO figures were 34.20 days and 34.91 days, respectively, which were closer to the long-term average. The most recent DSO value for 2023 improved to 34.13 days, indicating a recovery in the collection efficiency compared to the previous year.

Overall, while there have been fluctuations in Heartland Express, Inc.'s DSO ratio over the years, it is important for the company to consistently monitor and manage its accounts receivable to ensure timely collections and maintain healthy cash flow levels.