Heartland Express Inc (HTLD)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	28,123	49,462	157,742	113,852	76,684
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	123,476	156,757	71,594	71,042	63,407
Cash ratio		0.23	0.32	2.20	1.60	1.21

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($28,123K + $—K) ÷ $123,476K
= 0.23

The cash ratio of Heartland Express, Inc. has shown fluctuations over the past five years. The cash ratio decreased from 1.49 in 2019 to 0.46 in 2023, indicating a lower ability to cover its short-term liabilities with cash and cash equivalents.

The significant decrease from 2019 to 2020 suggests a possible change in the company's cash management or liquidity position. However, the ratio improved in 2021 to 2.46, indicating a strong ability to cover short-term obligations with cash on hand.

In 2022, the cash ratio slightly decreased to 0.55, but it remained relatively stable compared to the significant fluctuations in previous years. By the end of 2023, there was a notable decrease in the cash ratio to 0.46, suggesting a potential liquidity challenge or increased short-term liabilities relative to available cash.

Overall, the trend in Heartland Express, Inc.'s cash ratio indicates fluctuations in its ability to cover short-term obligations with cash, emphasizing the importance of monitoring liquidity management strategies to maintain financial stability.