Hub Group Inc (HUBG)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,948,950 | 4,197,040 | 5,358,280 | 4,244,580 | 3,485,460 |
| Property, plant and equipment | US$ in thousands | 739,896 | 791,692 | 783,683 | 681,451 | 671,101 |
| Fixed asset turnover | 5.34 | 5.30 | 6.84 | 6.23 | 5.19 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,948,950K ÷ $739,896K
= 5.34
Based on the data provided, Hub Group Inc's fixed asset turnover has shown a positive trend over the years, increasing from 5.19 in December 31, 2020, to 6.84 in December 31, 2022, before slightly dropping to 5.30 and 5.34 in December 31, 2023 and 2024 respectively.
This indicates that the company has been able to generate more revenue relative to its investment in fixed assets, as the fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales.
The significant increase in the fixed asset turnover ratio from 2020 to 2022 suggests that Hub Group Inc has been more effective in utilizing its fixed assets to generate revenue during this period. However, the slight decrease in the later years might indicate a potential decrease in efficiency in utilizing its fixed assets to generate sales or an increase in fixed asset investments.
Overall, the fluctuations in the fixed asset turnover ratio should be further analyzed in conjunction with other financial metrics to gain a holistic understanding of Hub Group Inc's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2024