Heartland Express Inc (HTLD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,509,650 | 1,669,490 | 928,542 | 951,176 | 898,931 |
| Total stockholders’ equity | US$ in thousands | 865,260 | 855,477 | 727,102 | 724,334 | 684,659 |
| Financial leverage ratio | 1.74 | 1.95 | 1.28 | 1.31 | 1.31 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,509,650K ÷ $865,260K
= 1.74
The financial leverage ratio of Heartland Express, Inc. has varied over the past five years. In 2023, the ratio decreased to 1.74 from 1.95 in 2022, indicating a lower level of financial leverage. This reduction may suggest that the company relied less on debt financing in 2023 compared to the previous year. However, the ratio remains higher than the levels seen in 2021, 2020, and 2019, when it ranged between 1.28 and 1.31.
The downward trend in the financial leverage ratio since 2022 could imply that Heartland Express, Inc. has been actively managing its debt levels or improving its financial position. A lower financial leverage ratio typically indicates lower financial risk and greater financial stability, as the company is less dependent on debt to finance its operations.
Overall, the decreasing trend in the financial leverage ratio of Heartland Express, Inc. suggests a potentially prudent approach to managing its capital structure and financial obligations in recent years.
Peer comparison
Dec 31, 2023