LTL Financial Health Report
LTL fleets are taking on more debt after a difficult first quarter
Key Observations
- The drop in income in 2024 hurt balance sheets at most LTL fleets. Debt-to-equity ratios moved higher in Q1 2025, halting a steady drop in debt levels which started in 2021.
- Cash positions have dropped faster than other current assets. Available cash slipped to just 12.55% of quarterly revenue in Q1 2025, almost 7 percentage points lower than Q1 2024.
- Current assets dropped less, indicating higher levels of accounts receivable. Assuming payment terms haven't changed, this is a sign of increased billable freight volume.
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