Heartland Express Inc (HTLD)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,207,460	967,996	607,284	645,262	596,815
Property, plant and equipment	US$ in thousands	885,351	973,258	487,915	539,280	526,287
Fixed asset turnover		1.36	0.99	1.24	1.20	1.13

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,207,460K ÷ $885,351K
= 1.36

Heartland Express, Inc.'s fixed asset turnover ratio has shown fluctuations over the past five years. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.

In 2023, the fixed asset turnover ratio stands at 1.36, signaling an improvement compared to the previous year. This indicates that the company was able to generate $1.36 in revenue for every dollar invested in fixed assets during the year. It suggests that the company has improved its efficiency in utilizing its fixed assets to generate sales.

Compared to 2022, where the ratio was 0.99, the increase in 2023 indicates a more effective management of fixed assets to drive revenue growth. Similarly, the ratios for 2021, 2020, and 2019 were 1.24, 1.20, and 1.13 respectively, demonstrating a consistent trend of incremental improvement in utilizing fixed assets efficiently over the years.

Overall, Heartland Express, Inc.'s increasing fixed asset turnover ratio indicates a positive trend in the company's ability to efficiently generate revenue from its fixed assets, which is a favorable aspect for investors and stakeholders looking at the company's operational efficiency.