Heartland Express Inc (HTLD)

Quick 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
Cash	US$ in thousands	28,123	20,101	46,250	55,506	49,462	64,824	171,879	187,085	157,742	180,366	167,241	148,212	113,852	81,949	82,457	64,183	76,684	111,934	205,642	176,303
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	112,897	129,344	122,398	126,170	142,958	163,052	95,712	61,583	56,907	58,538	59,290	60,568	55,577	62,538	64,133	65,981	57,076	60,645	53,643	53,279
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
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

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 shown a decreasing trend over the past four quarters, from 1.47 in Q4 2022 to 1.37 in Q4 2023. This indicates a potential liquidity concern as the quick ratio has fallen below the ideal benchmark of 1. Additionally, the current quick ratio of 1.37 in Q4 2023 is the lowest it has been in the past eight quarters.

A quick ratio below 1 suggests that the company may have difficulties meeting its short-term obligations with its most liquid assets. However, it is important to note that a quick ratio of 1.37 still indicates that Heartland Express, Inc. has an acceptable level of liquidity, as it has $1.37 in liquid assets available to cover each dollar of current liabilities.

Further monitoring of the quick ratio and an analysis of the components contributing to the decline in liquidity will be essential to determine the company's ability to meet its short-term financial obligations in the future.