Heartland Express Inc (HTLD)

Working capital 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
Total current assets US$ in thousands 169,272 182,067 198,765 212,312 229,782 266,156 296,116 268,487 233,223 258,574 247,511 226,667 193,012 173,597 169,645 149,260 151,814 198,373 280,482 253,274
Total current liabilities US$ in thousands 123,476 142,115 147,945 146,564 156,757 159,818 126,352 77,543 71,594 117,039 77,219 84,056 71,042 84,223 71,530 71,719 63,407 86,794 76,815 73,930
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,207,458K ÷ ($169,272K – $123,476K)
= 26.37

Heartland Express, Inc.'s working capital turnover has shown a fluctuating trend over the recent quarters. The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to generate sales.

From the data provided, we can observe that the working capital turnover ratio has been steadily increasing from Q1 2022 to Q4 2023, with a significant improvement over this period. This suggests that Heartland Express, Inc. has been able to optimize its working capital more efficiently to support its sales growth.

Moreover, the substantial increase in the working capital turnover ratio from Q1 2023 to Q4 2023 indicates a notable enhancement in the company's working capital management and efficiency in generating sales from its working capital.

Overall, the increasing trend in Heartland Express, Inc.'s working capital turnover ratio signifies an improvement in the company's operational efficiency and ability to convert working capital into sales revenue, which could be a positive indicator of its financial health and sustainable growth prospects.