Heartland Express Inc (HTLD)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	290,696	334,796	336,177	352,645	399,062	447,374	8,623	—	0	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	684,659	673,135	653,329	631,827
Debt-to-capital ratio		0.25	0.28	0.28	0.29	0.32	0.35	0.01	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	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 a decreasing trend over the past eight quarters, starting at 0.33 in Q4 2022 and dropping to 0.26 in Q4 2023. This indicates that the company has been reducing its reliance on debt financing relative to its total capital structure.

The ratio of 0.26 in Q4 2023 suggests that debt accounts for approximately 26% of Heartland Express's total capital, with the remaining 74% attributable to equity. This indicates a relatively conservative capital structure, with a higher proportion of funding coming from equity rather than debt.

Overall, the decreasing trend in the debt-to-capital ratio may reflect efforts by Heartland Express, Inc. to strengthen its financial position and reduce its financial risk by relying more on equity financing. However, it is important to monitor future trends in this ratio to ensure the company maintains a healthy balance between debt and equity in its capital structure.