Heartland Express Inc (HTLD)

Return on equity (ROE)

		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
Total stockholders’ equity	US$ in thousands	926,750	865,260	855,477	727,102	724,334
ROE		-3.21%	1.71%	15.62%	10.90%	9.78%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-29,722K ÷ $926,750K
= -3.21%

To analyze Heartland Express Inc's return on equity (ROE) based on the provided data, we observe the following trend:

1. In December 31, 2020, the company had an ROE of 9.78%. This indicated that for every dollar of shareholder equity, the company generated a return of 9.78%.

2. By December 31, 2021, the ROE improved to 10.90%, suggesting a slight increase in the company's profitability and efficiency in utilizing shareholder equity.

3. The ROE saw a significant jump to 15.62% by December 31, 2022, reflecting improved performance in generating profits relative to the shareholders' equity.

4. However, in December 31, 2023, there was a notable decline in ROE to 1.71%, indicating a decrease in the company's ability to generate returns on the equity invested by shareholders.

5. The trend worsened as by December 31, 2024, the ROE turned negative at -3.21%, signifying that the company's net income was insufficient to cover the shareholders' equity, possibly indicating financial difficulties or poor performance.

In conclusion, the analysis of Heartland Express Inc's ROE over the specified periods shows a mix of positive and negative trends. While the company demonstrated periods of improved profitability and efficiency in capital utilization, there were also instances of declining returns and even negative ROE in the later years, which may require further investigation into the company's financial health and operational strategies.