Heartland Express Inc (HTLD)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.08 1.17 1.23 1.26 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
Quick ratio 0.11 0.23 0.18 0.19 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
Cash ratio 0.11 0.23 0.18 0.19 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

Heartland Express Inc's liquidity ratios have shown fluctuations over the past few years.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 1, indicating the company has sufficient current assets to cover its current liabilities. However, the ratio has been decreasing over the past few quarters, which may indicate potential liquidity challenges if the trend continues.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also shown a declining trend. This may suggest that the company's ability to meet its short-term obligations without relying on inventory is weakening.

The cash ratio, which is the most conservative liquidity ratio that only considers cash and cash equivalents to current liabilities, has also been on a decreasing trend. This indicates that the company's ability to cover its current liabilities solely with its cash holdings is deteriorating.

Overall, the declining trend in Heartland Express Inc's liquidity ratios raises concerns about the company's short-term financial stability and ability to meet its obligations. Further analysis and monitoring of the liquidity situation would be advisable to ensure the company's financial health.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 0.00 0.00 0.00 0.00 0.00 4.06 4.29 5.29 7.28 8.42 8.20 7.96 6.79 6.81 6.38 6.34 5.87 5.65 5.45 5.76

Heartland Express Inc's cash conversion cycle has shown fluctuations over the period analyzed. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to June 30, 2021, the cash conversion cycle remained relatively stable between 5.45 days and 6.38 days, indicating efficient management of working capital. However, from September 2021 onwards, there was a noticeable increase in the cash conversion cycle, with values ranging from 6.81 days to 8.42 days, suggesting potential inefficiencies in managing accounts receivable, inventory, and accounts payable.

The most significant change occurred in the last quarter of 2023, where the cash conversion cycle dropped to 0.00 days, which could indicate a rapid conversion of inventory into sales. The cycle remained at 0.00 days for the subsequent reporting periods, demonstrating an exceptionally efficient handling of working capital during this period.

Overall, fluctuations in Heartland Express Inc's cash conversion cycle can provide insights into the company's liquidity management and efficiency in converting investments into cash. This metric is essential in assessing the company's operational performance and financial health.