Heartland Express Inc (HTLD)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	14,775	133,584	79,277	70,806	72,967
Total stockholders’ equity	US$ in thousands	865,260	855,477	727,102	724,334	684,659
ROE		1.71%	15.62%	10.90%	9.78%	10.66%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $14,775K ÷ $865,260K
= 1.71%

Heartland Express, Inc.'s return on equity (ROE) has fluctuated over the past five years. In 2023, the ROE significantly decreased to 1.71%, a substantial decline from the prior year's ROE of 15.62%. This suggests a notable decrease in the company's ability to generate profit from its shareholders' equity investments.

Comparing the ROE in 2023 to previous years, it is evident that the company's performance in utilizing equity to generate returns was weaker than in 2022 but also below the levels seen in 2021, 2020, and 2019.

The decline in ROE from 2022 to 2023 could be a cause for concern as it may indicate inefficiencies in the utilization of equity to generate profits, reduced profitability, or increased shareholder equity without a proportional increase in net income.

Further analysis of the company's financial statements and operational performance is recommended to identify the specific factors contributing to the decline in ROE and to formulate strategies for improvement in the future.