Heartland Express Inc (HTLD)

Short-term

Turnover ratios

Based on the activity ratios provided for Heartland Express Inc, we can observe the following trends:

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Over the years, Heartland Express Inc has shown a fluctuating trend in its inventory turnover ratio. The ratio started at a high level in early reporting periods but gradually decreased to lower levels by the end of 2024. This indicates that the company may be holding onto inventory for longer periods or experiencing challenges in managing its inventory efficiently.

2. Receivables Turnover: Unfortunately, data for the receivables turnover ratio is not available, making it challenging to assess the efficiency of Heartland Express Inc in collecting its accounts receivable. Without this information, it is difficult to evaluate the company's effectiveness in converting credit sales into cash.

3. Payables Turnover: Similarly, data for the payables turnover ratio is not provided, which would have helped in understanding how quickly the company is paying off its suppliers. This ratio is crucial for assessing the company's ability to manage its payables efficiently and maintain good relationships with its suppliers.

4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently a company is using its working capital to generate revenue. Heartland Express Inc's working capital turnover ratio has shown a varying trend over the reporting periods. The ratio started relatively high in the earlier years, then decreased before experiencing a significant increase in the later periods. This suggests fluctuations in the company's efficiency in utilizing its working capital to generate sales.

In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into Heartland Express Inc's operational efficiency, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall working capital management and liquidity position.

---

Average number of days

Based on the provided data, we can analyze Heartland Express Inc's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The average DOH for Heartland Express Inc has been relatively stable in the range of 5 to 8 days from March 2020 to June 2022.
- However, there was a noticeable increase in the DOH to 8.42 days as of September 30, 2022, followed by a slight decrease by the end of December 2022 to 7.28 days.
- The DOH then significantly dropped to 5.29 days as of March 31, 2023, and further decreased to 4.29 days by June 30, 2023, indicating a potential improvement in inventory management efficiency.
- As of September 30, 2023, and December 31, 2023, there is missing data, and the trend continues through the rest of 2024.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data available for DSO for Heartland Express Inc for the entire period from March 2020 to December 2024. Therefore, we cannot provide insights into the company's accounts receivable turnover efficiency.

3. Number of Days of Payables:
- Similar to DSO, there is no data provided for the number of days of payables for Heartland Express Inc from March 2020 to December 2024. This makes it challenging to assess the company's ability to manage its trade payables effectively.

In conclusion, based on the data provided, we can see that Heartland Express Inc maintained a relatively stable level of DOH over the years, with some fluctuations. However, the lack of data for DSO and the number of days of payables limits our ability to provide a comprehensive analysis of the company's overall activity ratios. Having complete data for all periods would enable a more thorough evaluation of Heartland Express Inc's operational efficiency and working capital management.

---

Long-term

Heartland Express Inc's fixed asset turnover ratio has shown some fluctuations over the years, ranging from a low of 0.77 in the third quarter of 2022 to a high of 1.37 in the second quarter of 2023. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. The trend indicates that the company has been able to slightly improve its efficiency in utilizing fixed assets from 2020 to 2023, but experienced a drop in the second half of 2023.

In comparison, the total asset turnover ratio for Heartland Express Inc has also varied over time, ranging from 0.45 in the third quarter of 2022 to 0.82 in the third quarter of 2023. This ratio reflects the company's overall efficiency in generating sales from its total assets. The trend shows a slight decline in total asset turnover from 2020 to 2022, followed by a significant improvement in 2023.

Overall, while the fixed asset turnover ratio indicates a mixed performance in utilizing fixed assets efficiently, the total asset turnover ratio suggests that the company has been able to enhance its efficiency in generating sales from its total assets, particularly in the later years of the analysis period. Monitoring these ratios can provide valuable insights into Heartland Express Inc's operational efficiency and asset management strategies.