Heartland Express Inc (HTLD)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	5.10	5.05	5.24	6.30	7.25	7.16	8.85	8.06	8.01	7.57	7.55	6.97	6.76	6.53	6.89	8.13	9.83	8.71	9.62
Days of sales outstanding (DSO)	days	34.13	36.68	35.29	40.13	53.91	78.18	54.60	37.08	34.20	34.75	34.65	35.01	31.44	34.76	36.44	38.62	34.91	38.39	33.76	32.76
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	34.13	41.79	40.34	45.37	60.21	85.44	61.76	45.94	42.26	42.76	42.21	42.56	38.41	41.52	42.97	45.51	43.03	48.22	42.47	42.38

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 34.13 – —
= 34.13

The cash conversion cycle (CCC) of Heartland Express, Inc. has shown a decreasing trend over the past quarters, indicating an improvement in the efficiency of its working capital management. In Q4 2023, the company's CCC was 34.13 days, down from 36.68 days in Q3 2023 and 40.13 days in Q1 2023. This suggests that the company is taking less time to convert its resources into cash.

Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), the CCC has significantly decreased from 53.90 days to 34.13 days. This reduction indicates that Heartland Express, Inc. has become more efficient in managing its cash flow and working capital.

Overall, the decreasing trend in the cash conversion cycle of Heartland Express, Inc. is a positive indication of the company's ability to manage its operating cycle effectively and convert its investments in inventory and receivables into cash more efficiently.