Heartland Express Inc (HTLD)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	28,123	20,101	46,250	55,506	49,462	64,824	171,879	187,085	157,742	180,366	167,241	148,212	113,852	81,949	82,457	64,183	76,684	111,934	205,642	176,303
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	123,476	142,115	147,945	146,564	156,757	159,818	126,352	77,543	71,594	117,039	77,219	84,056	71,042	84,223	71,530	71,719	63,407	86,794	76,815	73,930
Cash ratio		0.23	0.14	0.31	0.38	0.32	0.41	1.36	2.41	2.20	1.54	2.17	1.76	1.60	0.97	1.15	0.89	1.21	1.29	2.68	2.38

December 31, 2023 calculation

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

Heartland Express, Inc.'s cash ratio has shown significant fluctuations over the past eight quarters. The cash ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, ranged from a low of 0.37 in Q3 2023 to a high of 2.67 in Q1 2022.

The downward trend in the cash ratio from Q1 2022 to Q3 2023 indicates a potential concern regarding the company's liquidity position. A cash ratio below 1 implies that Heartland Express may have difficulty meeting its short-term obligations solely with its available cash and cash equivalents.

However, the sharp increase in the cash ratio in Q2 2022, followed by a slight recovery in Q4 2022, suggests that Heartland Express had significantly improved its liquidity position during that period. The cash ratio exceeding 1 in Q2 2022 and Q1 2022 indicates that the company had more than enough cash on hand to cover its short-term liabilities during those quarters.

Overall, Heartland Express, Inc.'s cash ratio analysis highlights the importance of monitoring the company's liquidity position and its ability to manage short-term obligations effectively.