Heartland Express Inc (HTLD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.69% | 32.36% | 31.54% | 33.05% | 31.29% |
| Operating profit margin | 3.51% | 19.46% | 17.36% | 14.48% | 15.80% |
| Pretax margin | 1.64% | 18.71% | 17.46% | 14.61% | 16.28% |
| Net profit margin | 1.22% | 13.80% | 13.05% | 10.97% | 12.23% |
Heartland Express, Inc.'s profitability ratios indicate fluctuations over the past five years. The gross profit margin has remained consistently high at 100%, suggesting efficient cost management in generating revenue. However, the operating profit margin has declined significantly from 12.18% in 2020 to 0.11% in 2023, indicating a reduction in profitability from core operations.
The pretax margin also saw a notable decrease from 17.46% in 2021 to 1.64% in 2023, implying that the company's income before taxes has declined relative to revenue. The net profit margin followed a similar trend, dropping from 12.23% in 2019 to 1.22% in 2023, indicating a decrease in profitability after all expenses including taxes.
Overall, while Heartland Express, Inc. has maintained a stable gross profit margin, the declining trend in operating profit margin, pretax margin, and net profit margin suggests challenges in maintaining profitability and efficiency in recent years. Further analysis and investigation would be necessary to understand the underlying factors driving these changes and to identify potential areas for improvement.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.81% | 11.28% | 11.35% | 9.82% | 10.49% |
| Return on assets (ROA) | 0.98% | 8.00% | 8.54% | 7.44% | 8.12% |
| Return on total capital | 3.67% | 15.01% | 14.50% | 12.90% | 13.77% |
| Return on equity (ROE) | 1.71% | 15.62% | 10.90% | 9.78% | 10.66% |
The profitability ratios of Heartland Express, Inc. have shown some fluctuations over the past five years.
- Operating return on assets (Operating ROA) has varied significantly, with a significant decrease from 7.32% in 2021 to 0.09% in 2023. This indicates that the company's operational efficiency in generating profits from its assets has decreased.
- Return on assets (ROA) has also fluctuated, reaching its peak at 8.54% in 2021 and then dropping to 0.98% in 2023. This ratio demonstrates the company's ability to generate profits from its total assets.
- Return on total capital reflects the overall return generated on both debt and equity capital invested in the company. This ratio has also fluctuated over the years, with a decrease from 10.85% in 2020 to 0.11% in 2023.
- Return on equity (ROE) shows the profitability of the company from the perspective of its equity shareholders. Heartland Express, Inc.'s ROE has fluctuated, reaching its peak at 15.62% in 2022 and then dropping to 1.71% in 2023.
Overall, the trend in the profitability ratios of Heartland Express, Inc. suggests that the company has experienced challenges in maintaining consistent profitability and maximizing returns for its stakeholders in recent years. Further analysis of the company's financial and operational performance would be needed to identify the reasons behind these fluctuations and to develop strategies for improvement.