Heartland Express Inc (HTLD)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 0.11 | 7.28 | 6.79 | 5.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.11 | 7.28 | 6.79 | 5.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Heartland Express Inc has shown a fluctuating trend over the years. It increased from 5.87 days in December 2020 to 6.79 days in December 2021, indicating a slight slowdown in the company's cash conversion efficiency. This trend continued as the cash conversion cycle further extended to 7.28 days by December 2022.
However, there was a significant improvement in efficiency by December 2023, with the cash conversion cycle decreasing to a mere 0.11 days. This sharp reduction suggests a much faster conversion of inventory and receivables into cash during that period. The trend continued into December 2024, where the cash conversion cycle reached an optimal level of 0.00 days, indicating that the company was managing its cash flow exceptionally well and converting its resources into cash almost immediately.
Overall, while there were fluctuations in the cash conversion cycle of Heartland Express Inc over the years, the company demonstrated an ability to effectively optimize its working capital management and improve its cash conversion efficiency, leading to better financial performance and liquidity.
Peer comparison
Dec 31, 2024