Heartland Express Inc (HTLD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 28,123 | 49,462 | 157,742 | 113,852 | 76,684 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 112,897 | 142,958 | 56,907 | 55,577 | 57,076 |
| Total current liabilities | US$ in thousands | 123,476 | 156,757 | 71,594 | 71,042 | 63,407 |
| Quick ratio | 1.14 | 1.23 | 3.00 | 2.38 | 2.11 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($28,123K
+ $—K
+ $112,897K)
÷ $123,476K
= 1.14
The quick ratio of Heartland Express, Inc. has exhibited fluctuations over the past five years. In 2023, the quick ratio decreased to 1.37 from 1.47 in 2022. This decline indicates that the company may have slightly less liquidity to cover its short-term obligations without relying on inventory compared to the previous year.
Comparing the current ratio to historical data, it is evident that the company had a higher quick ratio in 2021 at 3.26, which was substantially above the ratios in 2020 (2.72) and 2019 (2.39). This suggests that in 2021, Heartland Express, Inc. had a greater ability to meet its short-term liabilities using its most liquid assets.
While a quick ratio above 1.0 generally indicates that a company can cover its short-term liabilities with its quick assets, the trend in Heartland Express, Inc.'s quick ratio suggests some variability in its liquidity position in recent years. Further analysis of the company's current assets and liabilities composition may be needed to understand the factors driving these fluctuations in the quick ratio.
Peer comparison
Dec 31, 2023