Heartland Express Inc (HTLD)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	12,812	28,123	49,462	157,742	113,852
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	119,559	123,476	156,757	71,594	71,042
Cash ratio		0.11	0.23	0.32	2.20	1.60

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($12,812K + $—K) ÷ $119,559K
= 0.11

The cash ratio of Heartland Express Inc has fluctuated over the years based on the provided data. As of December 31, 2020, the cash ratio stood at 1.60, indicating that the company had $1.60 in cash and cash equivalents for every $1 of current liabilities. This demonstrates a healthy liquidity position at that time.

Subsequently, the cash ratio improved significantly by December 31, 2021, reaching 2.20. This indicates an enhanced ability to cover short-term obligations using available cash resources. The increase in the cash ratio suggests improved liquidity management or an increase in cash reserves during this period.

However, there was a notable decline in the cash ratio by December 31, 2022, where it fell to 0.32. This sharp reduction may indicate a decrease in cash holdings relative to current liabilities, potentially signaling liquidity challenges or a shift in the company's cash management practices.

The trend continued in the following years, with the cash ratio decreasing further to 0.23 by December 31, 2023, and then to 0.11 by December 31, 2024. These declining ratios suggest that Heartland Express Inc may be facing increasing difficulty in meeting its short-term obligations solely through its cash reserves.

Overall, the fluctuating cash ratios of Heartland Express Inc indicate varying degrees of liquidity risk and the need for close monitoring of cash management strategies to ensure the company's ability to meet its short-term financial commitments effectively.