Heartland Express Inc (HTLD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.19 | 0.21 | 0.21 | 0.22 | 0.24 | 0.26 | 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 |
| 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 |
| Debt-to-equity ratio | 0.34 | 0.39 | 0.39 | 0.41 | 0.47 | 0.53 | 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 |
| Financial leverage ratio | 1.74 | 1.83 | 1.83 | 1.86 | 1.95 | 2.02 | 1.36 | 1.28 | 1.28 | 1.35 | 1.29 | 1.31 | 1.31 | 1.33 | 1.32 | 1.33 | 1.31 | 1.41 | 1.32 | 1.32 |
The solvency ratios of Heartland Express, Inc. indicate the company's ability to meet its long-term financial obligations.
The Debt-to-assets ratio has shown a downward trend, decreasing from 0.25 in Q4 2022 to 0.20 in Q4 2023. This suggests that the company has reduced its reliance on debt to finance its assets, which may lead to a more stable financial position.
The Debt-to-capital ratio and Debt-to-equity ratio have also followed a similar pattern, showing a decrease over the quarters. This indicates that Heartland Express has been able to decrease its borrowing relative to its capital and equity, which is generally seen as a positive sign of financial health.
The Financial leverage ratio provides another perspective on the company's debt management. The decreasing trend from 2.02 in Q3 2022 to 1.74 in Q4 2023 demonstrates that Heartland Express has been able to reduce its financial leverage, signaling a lower dependence on borrowed funds to support its operations.
Overall, the decreasing trend in the solvency ratios of Heartland Express, Inc. reflects an improving financial position in terms of managing debt and leverage, which may enhance the company's ability to weather economic uncertainties and meet its financial obligations in the long run.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.73 | 2.36 | 4.76 | 12.35 | 20.30 | 75.28 | 1,079.39 | — | — | — | — | 603.06 | 175.26 | 77.15 | 55.39 | 48.85 | 48.77 | 59.35 | 77.11 | 108.06 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest payments using operating income.
Analyzing the interest coverage ratio of Heartland Express, Inc. over the past eight quarters reveals fluctuations in their ability to cover interest expenses. In Q1 2023, the interest coverage ratio was 6.88, indicating that the company's operating income was nearly seven times higher than its interest expenses. This suggests a strong ability to meet interest obligations.
However, the interest coverage ratio dropped significantly in subsequent quarters, reaching a low of 0.06 in Q4 2023. A ratio below 1 indicates that the company's operating income was insufficient to cover its interest expenses during that quarter, raising concerns about its financial health and ability to service debt.
The sharp decline in the interest coverage ratio from Q1 2023 to Q4 2023 suggests a potential deterioration in Heartland Express, Inc.'s financial position and raises red flags regarding its ability to manage debt obligations. It is important for investors and stakeholders to monitor this trend closely and assess the company's strategy for improving its interest coverage ratio in the future.