Heartland Express Inc (HTLD)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-20,236	42,385	188,358	-73,701	-30,950
Total assets	US$ in thousands	1,334,190	1,509,650	1,669,490	928,542	951,176
Operating ROA		-1.52%	2.81%	11.28%	-7.94%	-3.25%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-20,236K ÷ $1,334,190K
= -1.52%

Operating ROA, or operating return on assets, is a key financial metric that measures a company's efficiency in generating operating income from its assets.

The trend in Heartland Express Inc's operating ROA shows fluctuation over the years. The company experienced a negative operating ROA in 2020 and 2021, indicating that it generated operating income at a loss relative to its assets during these years.

However, in 2022, there was a significant improvement in the operating ROA, reaching a positive 11.28%, which suggests that the company was able to generate operating income efficiently relative to its assets. This could be a result of improved operational efficiency or better utilization of assets.

In 2023, the operating ROA decreased to 2.81%, indicating a slight dip in the company's ability to generate operating income from its assets compared to the previous year. The decrease may signify challenges faced by the company in maintaining the same level of efficiency or profitability.

By the end of 2024, the operating ROA decreased further to -1.52%, signaling a return to negative territory. This decrease may raise concerns about the company's ability to generate sufficient operating income relative to its asset base.

Overall, the fluctuating trend in Heartland Express Inc's operating ROA suggests that the company's operational performance and asset utilization have varied over the years. Further analysis of the company's operations and financial health would be necessary to determine the underlying factors driving these changes in operating ROA.