Heartland Express Inc (HTLD)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 6.30 | 8.05 | 6.96 | 8.11 |
| Days of sales outstanding (DSO) | days | 34.13 | 53.90 | 34.20 | 31.44 | 34.91 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 34.13 | 60.20 | 42.25 | 38.40 | 43.01 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 34.13 – —
= 34.13
The cash conversion cycle of Heartland Express, Inc. has varied over the past five years. In 2023, the cash conversion cycle improved significantly to 34.13 days compared to 53.90 days in 2022. This indicates that the company was able to reduce the time it takes to convert its investments in inventory and accounts receivable into cash during the most recent financial year.
The cash conversion cycle for 2023 was also slightly lower than in 2021 when it was 34.20 days, indicating a modest improvement in efficiency. However, it was higher than in 2020 when it stood at 31.44 days.
Overall, the trend in the cash conversion cycle for Heartland Express, Inc. shows some fluctuations over the years, with periods of improvement and slight deterioration. It is important for the company to continue monitoring and managing its working capital effectively to ensure optimal cash flow processes.
Peer comparison
Dec 31, 2023