Heartland Express Inc (HTLD)

Liquidity ratios

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
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
Quick ratio 1.14 1.05 1.14 1.24 1.23 1.43 2.12 3.21 3.00 2.04 2.93 2.48 2.38 1.72 2.05 1.81 2.11 1.99 3.38 3.11
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

Heartland Express, Inc.'s liquidity ratios provide insights into the company's ability to meet its short-term obligations. The current ratio, which measures the firm's ability to cover its current liabilities with current assets, has shown a gradual decline over the quarters, from 1.47 in Q4 2022 to 1.37 in Q4 2023. This suggests a slight weakening in the company's short-term liquidity position, as the ratio is now closer to 1, indicating a lower cushion of assets to cover current liabilities.

Similarly, the quick ratio, which excludes inventory from current assets, also demonstrates a downward trend from 1.47 in Q4 2022 to 1.37 in Q4 2023. This may indicate that a significant portion of current assets consists of inventory, which may not be easily convertible to cash in the short term.

In terms of the cash ratio, which specifically measures the company's ability to cover current liabilities with cash and cash equivalents, there is a noticeable decline from 0.55 in Q4 2022 to 0.46 in Q4 2023. This indicates that the company has a lower proportion of cash and cash equivalents relative to current liabilities, which may raise concerns about its immediate ability to settle obligations.

Overall, Heartland Express, Inc.'s liquidity ratios show a declining trend over the quarters, signaling a potential strain on the company's short-term liquidity position. Further analysis and monitoring of the company's working capital management and cash flow efficiency are advisable to ensure adequate liquidity to meet its short-term financial commitments.

Additional liquidity measure

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 conversion cycle days 34.13 41.79 40.34 45.37 60.21 85.44 61.76 45.94 42.26 42.76 42.21 42.56 38.41 41.52 42.97 45.51 43.03 48.22 42.47 42.38

The cash conversion cycle for Heartland Express, Inc. has shown variations over the past eight quarters. In Q4 2022, the company had a significantly high cash conversion cycle of 53.90 days, which decreased in subsequent quarters. By Q1 2023, the cycle reached its lowest point at 40.13 days before slightly increasing in Q2 and Q3 2023.

The cash conversion cycle measures the time it takes for a company to convert its resources such as inventory and accounts receivable into cash flow from sales. A lower cycle indicates that the company is efficiently managing its working capital and generating cash quickly. Heartland Express Inc. has demonstrated an improvement in its cash conversion efficiency from Q4 2022 to Q1 2023 but still has room for further optimization.

Overall, the trend in the cash conversion cycle indicates that Heartland Express, Inc. has been able to streamline its operations and manage its working capital more effectively in recent quarters. Continued focus on reducing the cycle further could lead to enhanced liquidity and financial stability for the company.