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.