Heartland Express Inc (HTLD)

Activity ratios

Short-term

Turnover ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover — 71.52 72.26 69.66 57.91 50.33 50.96 41.23 45.31 45.54 48.24 48.35 52.35 53.97 55.90 53.00 44.91 37.13 41.92 37.95
Receivables turnover 10.70 9.95 10.34 9.10 6.77 4.67 6.69 9.84 10.67 10.50 10.53 10.42 11.61 10.50 10.02 9.45 10.46 9.51 10.81 11.14
Payables turnover — — — — — — — — — — — — — — — — — — — —
Working capital turnover 26.37 32.21 24.91 17.45 13.26 7.16 3.77 3.17 3.76 4.34 3.67 4.43 5.29 7.35 6.55 8.04 6.75 5.17 2.85 3.31

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

1. Receivables turnover: This ratio indicates how efficiently the company is collecting on its accounts receivable. A higher ratio is favorable as it suggests that the company is collecting its receivables more quickly. In this case, we see an increasing trend in the receivables turnover ratio over the quarters, which indicates an improvement in the company's collection efficiency.

2. Working capital turnover: This ratio measures how well the company is utilizing its working capital to generate sales. A higher ratio suggests efficient utilization of working capital. In the data provided, we can see a consistent increase in the working capital turnover ratio over the quarters, which indicates that Heartland Express, Inc. is becoming more effective in generating sales with its working capital.

Overall, based on the activity ratios presented, it appears that Heartland Express, Inc. has been improving its efficiency in both collecting receivables and utilizing working capital to drive sales.

Average number of days

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days — 5.10 5.05 5.24 6.30 7.25 7.16 8.85 8.06 8.01 7.57 7.55 6.97 6.76 6.53 6.89 8.13 9.83 8.71 9.62
Days of sales outstanding (DSO) days 34.13 36.68 35.29 40.13 53.91 78.18 54.60 37.08 34.20 34.75 34.65 35.01 31.44 34.76 36.44 38.62 34.91 38.39 33.76 32.76
Number of days of payables days — — — — — — — — — — — — — — — — — — — —

Days of inventory on hand (DOH) and number of days of payables are not provided in the data table, which limits the comprehensive analysis of Heartland Express, Inc.'s activity ratios. However, focusing on Days of Sales Outstanding (DSO), we observe a fluctuating trend over the quarters.

DSO indicates the average number of days it takes for the company to collect payment after a sale has been made. A lower DSO is generally favorable as it signifies faster cash collection and efficient accounts receivable management.

In Q1 2023, the DSO was 40.13 days, showing a slight increase compared to the previous quarter. However, it is significantly lower than the DSO of Q4 2022, which was 53.90 days, indicating an improvement in the collection efficiency.

The DSO values for Q2 and Q3 2023 are 35.29 days and 36.68 days, respectively, showing variability in the collection period. Furthermore, the DSO in Q1 2023, at 40.13 days, appears to be closer to the DSO value in Q2 2023, suggesting a stable trend in recent quarters.

Continued monitoring of DSO trends will be crucial to evaluate the effectiveness of Heartland Express, Inc.'s accounts receivable management and its impact on the company's overall liquidity and cash flow position.

Long-term

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 1.36 1.39 1.37 1.22 0.99 0.79 1.25 1.28 1.24 1.25 1.25 1.23 1.20 1.15 1.18 1.14 1.13 1.08 1.41 1.45
Total asset turnover 0.80 0.82 0.79 0.71 0.58 0.45 0.57 0.64 0.65 0.64 0.65 0.67 0.68 0.68 0.69 0.68 0.66 0.61 0.67 0.71

The fixed asset turnover ratio for Heartland Express, Inc. has shown a relatively stable trend over the past eight quarters, ranging from 0.79 to 1.39. This ratio indicates the efficiency with which the company generates sales revenue from its fixed assets. A higher fixed asset turnover ratio is generally favorable as it suggests that the company is effectively utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also displayed an increasing trend, starting from 0.45 in Q1 2022 and reaching 0.82 in Q3 2023. This ratio reflects how efficiently the company is using its total assets to generate sales. An increasing total asset turnover ratio is generally seen as positive, indicating that the company is effectively utilizing its assets to generate revenue.

Comparing the two ratios, we can see that Heartland Express, Inc. is more efficient in generating revenue from its fixed assets compared to its total assets. This may suggest that the company's fixed assets are being utilized more effectively than its total assets in generating sales. Overall, the improving trends in both fixed asset turnover and total asset turnover ratios indicate enhanced efficiency in asset utilization and potentially improved operational performance for Heartland Express, Inc.