Heartland Express Inc (HTLD)

Current 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
Total current assets	US$ in thousands	169,272	182,067	198,765	212,312	229,782	266,156	296,116	268,487	233,223	258,574	247,511	226,667	193,012	173,597	169,645	149,260	151,814	198,373	280,482	253,274
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
Current ratio		1.37	1.28	1.34	1.45	1.47	1.67	2.34	3.46	3.26	2.21	3.21	2.70	2.72	2.06	2.37	2.08	2.39	2.29	3.65	3.43

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $169,272K ÷ $123,476K
= 1.37

The current ratio of Heartland Express, Inc. has displayed a downward trend over the past eight quarters, indicating a potential deterioration in the company's liquidity position. The ratio has decreased from a high of 3.46 in Q1 2022 to 1.37 in Q4 2023. This suggests that the company may be facing challenges in meeting its short-term obligations with its current assets.

While a current ratio above 1.0 typically indicates that a company can cover its short-term liabilities with its current assets, the decreasing trend observed in Heartland Express, Inc.'s current ratio raises concerns about the firm's ability to maintain liquidity levels in the near future. The most recent current ratio of 1.37 in Q4 2023 indicates that the company may have a relatively tighter liquidity position compared to previous quarters.

It is important for stakeholders and investors to monitor the company's liquidity position closely, as a declining current ratio may signal potential financial challenges ahead. Further analysis of the company's cash flow and working capital management practices may provide additional insights into the underlying factors driving the trend in the current ratio.