Heartland Express Inc (HTLD)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	896,931	1,032,729	1,073,423	1,081,998	1,092,950	1,068,295	973,282	749,721	566,067	438,093	381,495	460,352	492,644	496,757	501,655	503,823	512,764	532,941	528,443	512,872
Inventory	US$ in thousands	—	—	—	0	—	11,884	11,440	10,862	11,293	10,103	8,570	10,043	9,168	9,272	8,768	8,758	8,241	8,245	7,893	8,100
Inventory turnover		—	—	—	—	—	89.89	85.08	69.02	50.13	43.36	44.52	45.84	53.74	53.58	57.21	57.53	62.22	64.64	66.95	63.32

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $896,931K ÷ $—K
= —

Inventory turnover is a crucial financial ratio that measures how efficiently a company manages its inventory by calculating the number of times it sells and replaces its inventory within a specific period. For Heartland Express Inc, the inventory turnover has shown some fluctuations over the past few years.

The company's inventory turnover was relatively high in the earlier periods, ranging from 63.32 to 66.95, indicating that Heartland Express was managing its inventory efficiently and quickly converting it into sales. However, starting from March 31, 2021, the inventory turnover began to decline steadily, reaching its lowest point at 43.36 on September 30, 2022.

The declining trend in inventory turnover may suggest that Heartland Express Inc could be facing challenges in selling its inventory or might be carrying excess or obsolete inventory. A lower inventory turnover ratio can lead to higher carrying costs, storage issues, and potential write-downs on inventory.

It is important for Heartland Express Inc to closely monitor and manage its inventory levels to improve its inventory turnover ratio. This may involve optimizing procurement, production, and sales processes, as well as closely analyzing customer demand patterns. By improving inventory turnover, the company can enhance its liquidity, reduce holding costs, and potentially increase profitability.