Heartland Express Inc (HTLD)
Debt-to-equity 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-equity ratio | 0.34 | 0.47 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $290,696K ÷ $865,260K
= 0.34
The debt-to-equity ratio of Heartland Express, Inc. has exhibited a decreasing trend over the past five years. In 2019, 2020, and 2021, the company had a debt-to-equity ratio of 0.00, indicating that the company had no debt during those years and the entire funding came from equity.
However, in 2022 and 2023, the debt-to-equity ratio increased to 0.48 and 0.35, respectively. This suggests that the company started utilizing debt as a source of financing in these two years. Although the ratio has increased, it is still below 1, indicating that the company has not become highly leveraged and the equity is still a significant portion of the financing structure.
Overall, the recent increase in the debt-to-equity ratio may signify a strategic shift towards using debt to fund operations or expansion, which can have implications on the company's financial risk profile and cost of capital. Monitoring this ratio in conjunction with other financial metrics will be essential to assess the company's financial health and leverage levels effectively.
Peer comparison
Dec 31, 2023