Heartland Express Inc (HTLD)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	1,207,458	1,287,007	1,265,957	1,147,609	967,968	761,214	639,850	606,157	607,284	614,931	624,601	631,373	645,289	656,727	642,353	623,597	596,815	576,591	579,962	593,644
Receivables	US$ in thousands	112,897	129,344	122,398	126,170	142,958	163,052	95,712	61,583	56,907	58,538	59,290	60,568	55,577	62,538	64,133	65,981	57,076	60,645	53,643	53,279
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,207,458K ÷ $112,897K
= 10.70

The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a given period. It indicates the number of times a company collects its average accounts receivable balance during the period. A higher turnover ratio is generally considered favorable as it suggests faster collection of receivables.

Analyzing Heartland Express, Inc.'s receivables turnover over the past eight quarters, we can observe fluctuations in the ratio. In Q4 2023, the company's receivables turnover was 10.70, showing an improvement from the previous quarter and indicating that Heartland Express collected its accounts receivable approximately 10.70 times during the quarter. This suggests efficient collection practices, which could be attributed to effective credit management or prompt payment terms with customers.

Comparing Q4 2023 to Q4 2022, there has been a notable increase in receivables turnover, indicating an enhancement in the company's collection efficiency over the year. This improvement trend is further evidenced by a consistent increase in the turnover ratio over the past four quarters.

Overall, Heartland Express, Inc. has shown a positive trend in its receivables turnover, reflecting effective management of accounts receivable and a successful collection process. This indicates that the company is efficiently converting its credit sales into cash, which is essential for maintaining healthy cash flow and liquidity.