Heartland Express Inc (HTLD)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -19,093 | 44,040 | 91,452 | 106,047 | 94,261 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 926,750 | 865,260 | 855,477 | 727,102 | 724,334 |
| Return on total capital | -2.06% | 5.09% | 10.69% | 14.58% | 13.01% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-19,093K ÷ ($—K + $926,750K)
= -2.06%
Heartland Express Inc's return on total capital has experienced fluctuations over the years. In 2020, the return on total capital was 13.01%, showing a decent level of profitability. However, by the end of 2021, the return increased to 14.58%, indicating a positive trend in the company's ability to generate returns relative to its total capital.
In 2022, there was a decline in the return on total capital to 10.69%, which may be a cause for concern as it suggests a decrease in efficiency in utilizing total capital to generate profit. This trend continued in 2023, with the return dropping further to 5.09%, indicating potential challenges or inefficiencies affecting the company's profitability.
By the end of 2024, the return on total capital turned negative at -2.06%, signaling a significant decline in the company's ability to generate returns compared to the capital invested. This negative return raises red flags about the company's operational performance and financial health.
Overall, the fluctuating nature of Heartland Express Inc's return on total capital reflects varying levels of efficiency and profitability in utilizing its capital resources over the years. It is essential for the company to closely monitor and address factors impacting its return on total capital to ensure sustainable financial performance.
Peer comparison
Dec 31, 2024