Heartland Express Inc (HTLD)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-29,722	14,775	133,584	79,277	70,806
Revenue	US$ in thousands	1,047,510	1,207,460	967,996	607,284	645,262
Net profit margin		-2.84%	1.22%	13.80%	13.05%	10.97%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $-29,722K ÷ $1,047,510K
= -2.84%

Net profit margin, a key ratio indicating the percentage of revenue that translates into profit, reveals insights into Heartland Express Inc's financial performance. The trend analysis demonstrates fluctuations over the years:

1. As of December 31, 2020, the net profit margin stood at 10.97%, showcasing a decent profitability level.

2. By December 31, 2021, the net profit margin improved to 13.05%, indicating enhanced efficiency in converting revenue into profit.

3. Continuing the positive trajectory, the net profit margin rose further to 13.80% by December 31, 2022, reflecting sustained profitability.

4. However, a notable decline occurred by December 31, 2023, with the net profit margin dropping significantly to 1.22%, suggesting challenges impacting profitability.

5. The trend worsened by December 31, 2024, as the net profit margin turned negative at -2.84%, indicating that expenses surpassed revenue, leading to a loss.

In conclusion, while Heartland Express Inc demonstrated a commendable improvement in profitability until 2022, a significant decline in the subsequent years raises concerns regarding operational efficiency and cost management practices that may require further scrutiny and corrective actions.