Heartland Express Inc (HTLD)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-20,504	-36,266	-36,549	-27,482	9,909	46,484	88,927	104,062	103,229	107,814	105,989	110,172	101,678	92,701	80,865	75,081	78,589	71,714	64,240	63,986
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,446,320	825,749	836,766	848,790	865,260	861,130	872,937	866,619	855,477	840,889	817,902	742,528	727,102	708,816	741,766	722,417	724,334	721,709	702,615	684,688
Return on total capital		-1.42%	-4.39%	-4.37%	-3.24%	1.15%	5.40%	10.19%	12.01%	12.07%	12.82%	12.96%	14.84%	13.98%	13.08%	10.90%	10.39%	10.85%	9.94%	9.14%	9.35%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-20,504K ÷ ($—K + $1,446,320K)
= -1.42%

Heartland Express Inc's return on total capital has shown fluctuations over the periods provided. The ratio started at a moderate level of 9.35% as of March 31, 2020, and remained relatively stable around the 9-11% range until December 31, 2021. From there, the return on total capital experienced a notable increase, reaching a peak of 14.84% by March 31, 2022.

However, the ratio then began to decline, dropping to 10.19% by June 30, 2023, and falling further to 1.15% by December 31, 2023. The trend worsened in the following periods, with negative returns recorded from March 31, 2024, to December 31, 2024, ranging from -3.24% to -1.42%.

This downward trend indicates a significant decline in the efficiency of Heartland Express Inc in generating returns from its total capital during the latter periods. It may be important for stakeholders to closely monitor the company's financial performance and assess the factors contributing to the decreasing return on total capital.