Hub Group Inc (HUBG)

Short-term

Turnover ratios

Inventory turnover for Hub Group, Inc. is not provided in the table.

Receivables turnover has shown a decreasing trend over the past five years, from 8.21 in 2019 to 6.96 in 2023. This implies that the company is taking longer to collect its accounts receivable, which may indicate issues with credit policies or the quality of customers.

Payables turnover has been fluctuating with significantly high ratios in 2022 and 2021, and zero values in 2020 and 2019. This inconsistency may suggest variations in payment practices or vendor relationships within the company during these years.

Working capital turnover has also shown variation over the years, with a peak in 2019 at 27.61 and lower values in subsequent years. A higher working capital turnover ratio typically indicates efficient utilization of working capital to generate sales, although the decreasing trend may signify changes in operational efficiency or sales volume.

Overall, further analysis of inventory turnover would provide a more holistic view of Hub Group, Inc.'s activity ratios and operational efficiency in managing its resources and generating revenue.

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Average number of days

To analyze Hub Group, Inc.'s activity ratios, we will look at Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH): Unfortunately, the data for Days of Inventory on Hand is not provided for the years in question. This ratio indicates how many days it takes for the company to turn its inventory into sales. A lower DOH value is generally preferred as it suggests that the company is efficiently managing its inventory levels. Without specific data points, it is difficult to provide insight into how well Hub Group is managing its inventory over the years.

2. Days of Sales Outstanding (DSO): The DSO measures the average number of days it takes for a company to collect revenue after a sale has been made. We observe fluctuations in this ratio over the years, ranging from 44.46 days in 2019 to 60.76 days in 2021. A decreasing DSO is positive as it indicates faster collections and better cash flow management. In 2023, the DSO slightly increased to 52.42 days, which might suggest a slight delay in collecting revenues compared to the previous year.

3. Number of Days of Payables: This ratio signifies the average number of days it takes the company to pay its suppliers. A longer payment period suggests better cash flow management as the company can hold onto cash for a longer period. Hub Group's days of payables increased from 29.55 days in 2022 to 42.22 days in 2023, indicating that the company took more time to pay its suppliers, potentially signaling improved cash management or negotiating better payment terms.

Overall, the analysis of Hub Group's activity ratios reveals some fluctuations, with potential areas for improvement in managing inventory turnovers and collections. The increase in days of payables could indicate better cash flow management. It would be beneficial to assess these ratios alongside other financial metrics to gain a comprehensive understanding of the company's operational efficiency and financial health.

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Long-term

Hub Group, Inc.'s long-term activity ratios indicate how efficiently the company is utilizing its fixed assets and total assets to generate revenues. The fixed asset turnover ratio has shown a fluctuating trend over the past five years, ranging from 5.21 to 6.81. This ratio measures how effectively the company is generating revenue from its fixed assets. A higher fixed asset turnover ratio generally indicates better efficiency in utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also depicted variability over the same period, fluctuating between 1.43 and 1.90. This ratio assesses the company's ability to generate sales from its total assets. A higher total asset turnover ratio suggests that the company is efficiently using its assets to generate revenue.

Overall, Hub Group, Inc. has exhibited respectable turnover ratios over the years, indicating efficient utilization of both fixed and total assets in generating revenues. However, the fluctuations in the ratios suggest that the company may have experienced changes in its asset utilization efficiency during the period under review. It would be beneficial for stakeholders to further investigate the reasons behind these fluctuations to ensure sustained operational efficiency.