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.