Hub Group Inc (HUBG)

Days of sales outstanding (DSO)

		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
Receivables turnover		7.38	7.07	7.83	7.41	7.84	6.78	6.32	6.00	6.19	6.36	7.02	6.99	6.81	6.22	7.62	7.81	8.19	8.62	8.95	9.06
DSO	days	49.49	51.63	46.60	49.27	46.57	53.85	57.77	60.82	58.95	57.42	51.98	52.20	53.57	58.71	47.88	46.71	44.55	42.36	40.78	40.29

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.38
= 49.49

Days Sales Outstanding (DSO) is a measure used to evaluate how efficiently a company collects its accounts receivable. Hub Group, Inc. has shown fluctuations in its DSO over the past eight quarters. The DSO decreased from 60.93 days in Q1 2022 to 46.57 days in Q2 2023, indicating an improvement in the company's ability to collect payments from customers more quickly. However, there was a slight increase to 52.42 days in Q4 2023 compared to the previous quarter.

The trend in DSO over this period suggests that Hub Group, Inc. has been effectively managing its accounts receivable, with some fluctuations quarter to quarter. Overall, a lower DSO is generally preferred as it indicates that the company is collecting payments more promptly, which can improve cash flow and overall financial health.