Heartland Express Inc (HTLD)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	19,854	35,255	81,420	175,850	181,092	187,267	187,787	110,172	106,048	103,300	97,356	94,976	94,262	87,874	87,779	92,892	97,177	110,000	108,303	100,614
Revenue (ttm)	US$ in thousands	1,207,458	1,287,007	1,265,957	1,147,609	967,968	761,214	639,850	606,157	607,284	614,931	624,601	631,373	645,289	656,727	642,353	623,597	596,815	576,591	579,962	593,644
Pretax margin		1.64%	2.74%	6.43%	15.32%	18.71%	24.60%	29.35%	18.18%	17.46%	16.80%	15.59%	15.04%	14.61%	13.38%	13.67%	14.90%	16.28%	19.08%	18.67%	16.95%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $19,854K ÷ $1,207,458K
= 1.64%

Heartland Express, Inc.'s pretax margin has shown a declining trend over the quarters, from 18.71% in Q4 2022 to 1.64% in Q4 2023. The decrease in pretax margin can be a cause for concern as it indicates a lower profitability before considering taxes, which could be attributed to various factors such as increasing operating expenses or declining revenues. The substantial decline from Q3 2023 to Q4 2023, where the pretax margin dropped from 2.74% to 1.64%, suggests a significant impact on profitability within a short period.

Further investigation into the factors driving the decline in pretax margin is warranted to assess the company's financial performance and sustainability. Evaluating cost structures, revenue streams, and overall operational efficiency could provide insights into the underlying reasons for the decreasing profitability and help in identifying areas for improvement to enhance the company's financial health.