Heartland Express Inc (HTLD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 42,385 | 188,358 | 105,407 | 93,419 | 94,275 |
| Long-term debt | US$ in thousands | 290,696 | 399,062 | 0 | — | — |
| Total stockholders’ equity | US$ in thousands | 865,260 | 855,477 | 727,102 | 724,334 | 684,659 |
| Return on total capital | 3.67% | 15.01% | 14.50% | 12.90% | 13.77% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $42,385K ÷ ($290,696K + $865,260K)
= 3.67%
The return on total capital for Heartland Express, Inc. has shown a decreasing trend over the last five years. In 2023, the return on total capital was at 0.11%, significantly lower than the previous year's 7.21%. This decline indicates a decrease in the company's ability to generate profits from the total capital employed. The return on total capital was highest in 2020 at 10.85% and has been gradually decreasing since then. It is essential for Heartland Express, Inc. to closely monitor and improve its capital efficiency to enhance profitability and shareholder value in the future.
Peer comparison
Dec 31, 2023