Heartland Express Inc (HTLD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.25% | 12.03% | 41.52% | 18.88% | 20.53% |
| Operating profit margin | -1.93% | 3.51% | 19.46% | -12.14% | -4.80% |
| Pretax margin | -3.50% | 1.64% | 18.71% | 17.46% | 14.61% |
| Net profit margin | -2.84% | 1.22% | 13.80% | 13.05% | 10.97% |
Based on the provided data, here is a detailed analysis of Heartland Express Inc's profitability ratios:
1. Gross Profit Margin:
- The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold.
- In 2020, the gross profit margin was 20.53%, which decreased to 18.88% in 2021 before significantly improving to 41.52% in 2022.
- In 2023, there was a notable decline in the gross profit margin to 12.03%, which then increased to 42.25% in 2024.
- The fluctuation in the gross profit margin indicates changes in the company's pricing strategy, production costs, or product mix over the years.
2. Operating Profit Margin:
- The operating profit margin reflects the proportion of revenue that remains after deducting operating expenses.
- Heartland Express Inc reported negative operating profit margins in 2020 (-4.80%) and 2021 (-12.14%).
- The company's operating profit margin turned positive in 2022 at 19.46%, but dropped to 3.51% in 2023 and -1.93% in 2024.
- The variability in the operating profit margin suggests fluctuations in operating expenses or inefficiencies in cost management during the period.
3. Pretax Margin:
- The pretax margin represents the percentage of income before taxes relative to total revenue.
- Heartland Express Inc experienced a steady increase in pretax margin from 14.61% in 2020 to 17.46% in 2021 and further to 18.71% in 2022.
- However, there was a significant decline in the pretax margin to 1.64% in 2023 and a negative pretax margin of -3.50% in 2024.
- The trend in the pretax margin indicates changes in the company's profitability before tax implications and potential challenges in generating income during recent years.
4. Net Profit Margin:
- The net profit margin reflects the profitability after all expenses, including taxes, have been deducted.
- Heartland Express Inc's net profit margin was 10.97% in 2020, which increased to 13.05% in 2021 and 13.80% in 2022.
- However, there was a sharp decline in the net profit margin to 1.22% in 2023 and a negative net profit margin of -2.84% in 2024.
- The fluctuation in the net profit margin signals changes in overall profitability, including the impact of taxes and other financial obligations on the company's bottom line performance.
In summary, the analysis of Heartland Express Inc's profitability ratios reveals fluctuations in gross profit margin, operating profit margin, pretax margin, and net profit margin over the years. These variations suggest changes in revenue generation, cost management efficiency, operational performance, and overall profitability of the company during the period analyzed.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.52% | 2.81% | 11.28% | -7.94% | -3.25% |
| Return on assets (ROA) | -2.23% | 0.98% | 8.00% | 8.54% | 7.44% |
| Return on total capital | -2.06% | 5.09% | 10.69% | 14.58% | 13.01% |
| Return on equity (ROE) | -3.21% | 1.71% | 15.62% | 10.90% | 9.78% |
Heartland Express Inc's profitability ratios show fluctuating performance over the years.
1. Operating return on assets (Operating ROA) indicates the company's operating profitability relative to its total assets. In 2022, Heartland Express Inc achieved a strong Operating ROA of 11.28%, signifying efficient utilization of assets to generate operating profits. However, in 2021 and 2024, the company experienced negative Operating ROA indicating operational challenges.
2. Return on assets (ROA) reflects the company's overall profitability in relation to its total assets. The ROA varied significantly, with a peak of 8.54% in 2021 and a low of -2.23% in 2024. The decreasing trend in ROA from 2022 to 2024 suggests a decline in the company's ability to generate profits from its assets.
3. Return on total capital measures the returns generated from both debt and equity capital. Heartland Express Inc's Return on total capital ranged from a high of 14.58% in 2021 to a negative figure of -2.06% in 2024. The decreasing trend indicates potential challenges in effectively utilizing both debt and equity capital to generate returns.
4. Return on equity (ROE) represents the returns generated for shareholders on their equity investment. The ROE peaked at 15.62% in 2022 but declined to -3.21% in 2024. The negative ROE in 2024 indicates that the company's net income was insufficient to cover shareholder equity, raising concerns about profitability and shareholder value.
Overall, Heartland Express Inc's profitability ratios suggest a mixed performance, with fluctuations in profitability levels and challenges in generating returns for both shareholders and capital providers.