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.