Heartland Express Inc (HTLD)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,047,511	1,080,282	1,115,447	1,146,862	1,207,458	1,287,034	1,265,984	1,147,636	967,995	761,214	639,850	606,157	607,284	614,931	624,601	631,346	645,262	656,699	642,325	623,596
Total current assets	US$ in thousands	129,448	157,128	164,118	160,142	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
Total current liabilities	US$ in thousands	119,559	134,725	133,837	127,468	123,476	142,224	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
Working capital turnover		105.93	48.22	36.84	35.10	26.37	32.30	24.91	17.46	13.26	7.16	3.77	3.17	3.76	4.34	3.67	4.43	5.29	7.35	6.55	8.04

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,047,511K ÷ ($129,448K – $119,559K)
= 105.93

Heartland Express Inc's working capital turnover has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.

The trend of the working capital turnover ratio indicates the company's ability to efficiently manage its current assets and liabilities. Typically, a higher working capital turnover ratio is considered favorable as it suggests that the company is efficiently using its working capital to generate revenue.

Heartland Express Inc's working capital turnover ratio started at a relatively high level of 8.04 in March 31, 2020, and gradually decreased over the next few quarters, reaching its lowest point of 3.17 in March 31, 2022. This decline could indicate potential inefficiencies in managing working capital during this period.

However, starting from June 30, 2022, the working capital turnover ratio began to increase significantly, indicating improved efficiency in working capital management. By December 31, 2024, the ratio reached a substantial level of 105.93, reflecting a significant enhancement in utilizing working capital to generate sales revenue.

Overall, the upward trend in the working capital turnover ratio from June 30, 2022, to December 31, 2024, suggests that Heartland Express Inc has enhanced its working capital management practices, which could positively impact its operational efficiency and financial performance.