Heartland Express Inc (HTLD)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 1,047,510 1,207,460 967,996 607,284 645,262
Total current assets US$ in thousands 129,448 169,272 229,782 233,223 193,012
Total current liabilities US$ in thousands 119,559 123,476 156,757 71,594 71,042
Working capital turnover 105.93 26.37 13.26 3.76 5.29

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,047,510K ÷ ($129,448K – $119,559K)
= 105.93

Heartland Express Inc's working capital turnover has shown a fluctuating trend over the past five years. The ratio has decreased from 5.29 in December 2020 to 3.76 in December 2021, indicating a lower efficiency in utilizing its working capital during this period. However, there was a significant improvement in efficiency as the ratio surged to 13.26 in December 2022 and further increased to 26.37 in December 2023, showcasing a more effective management of working capital. Notably, in December 2024, the working capital turnover ratio skyrocketed to 105.93, signaling a remarkable efficiency in generating revenue from the working capital deployed. This substantial increase suggests that the company has been able to optimize its working capital management strategies and generate higher sales relative to the amount of working capital invested.