Heartland Express Inc (HTLD)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.25 | 0.32 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $290,696K ÷ ($290,696K + $865,260K)
= 0.25
The debt-to-capital ratio of Heartland Express, Inc. has shown variation over the past five years.
In 2023, the debt-to-capital ratio was 0.26, indicating that 26% of the company's capital structure was funded through debt, while the remaining 74% was funded through equity. This ratio decreased from the previous year, which was at 0.33 in 2022.
It is noteworthy that in 2021, 2020, and 2019, the company had a debt-to-capital ratio of 0.00, signaling that either the company had no debt during those years, or debt was negligible compared to the total capital employed.
Overall, the decreasing trend in the debt-to-capital ratio from 2022 to 2023 suggests that the company might be reducing its reliance on debt as a source of funding, which could indicate a more conservative financial strategy. However, it is essential to consider the reasons behind these changes in the debt-to-capital ratio to get a comprehensive understanding of Heartland Express, Inc.'s financial health and capital structure.
Peer comparison
Dec 31, 2023