Hub Group Inc (HUBG)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,197,040	5,358,280	4,244,580	3,485,460	3,658,380
Property, plant and equipment	US$ in thousands	791,692	783,683	681,451	671,101	663,165
Fixed asset turnover		5.30	6.84	6.23	5.19	5.52

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,197,040K ÷ $791,692K
= 5.30

The fixed asset turnover of Hub Group, Inc. has fluctuated over the past five years, with values ranging from 5.21 to 6.81. A higher fixed asset turnover ratio indicates that the company is generating more revenue from its fixed assets.

The decrease in fixed asset turnover from 2022 to 2023 (6.81 to 5.31) may suggest that the company is utilizing its fixed assets less efficiently to generate sales. This could be due to various factors such as underutilization of assets, inefficient asset deployment, or a decrease in revenue relative to fixed asset investments.

On the other hand, the company showed improving efficiency in utilizing its fixed assets from 2020 to 2022 with a notable increase from 5.21 to 6.81. This improvement indicates that the company was able to generate more revenue for each dollar invested in fixed assets during this period.

Overall, while the current fixed asset turnover ratio is lower than the previous year, it is still relatively high, indicating that Hub Group, Inc. is efficiently utilizing its fixed assets to generate sales. Monitoring this ratio over time can provide insights into the company's operational efficiency and effectiveness in managing its assets.