Hub Group Inc (HUBG)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	4,195,418	4,499,370	4,831,330	5,194,040	5,341,940	5,319,660	5,039,710	4,619,111	4,237,513	3,925,073	3,774,338	3,571,114	3,487,825	3,435,776	3,423,820	3,566,056	3,660,550	3,778,159	3,798,353	4,056,790
Property, plant and equipment	US$ in thousands	791,692	789,842	783,127	776,656	783,683	755,580	712,571	689,779	681,451	661,346	632,236	641,858	671,101	638,940	650,990	668,398	663,165	657,826	651,057	663,337
Fixed asset turnover		5.30	5.70	6.17	6.69	6.82	7.04	7.07	6.70	6.22	5.93	5.97	5.56	5.20	5.38	5.26	5.34	5.52	5.74	5.83	6.12

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,195,418K ÷ $791,692K
= 5.30

Hub Group, Inc.'s fixed asset turnover ratio has shown a decreasing trend over the last eight quarters, ranging from 5.31 in Q4 2023 to 7.06 in Q2 2022. This ratio measures the company's ability to generate revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is effectively utilizing its fixed assets to generate sales.

The declining trend in fixed asset turnover may suggest that the company's efficiency in utilizing its fixed assets to generate revenue has decreased over time. This could be due to various factors such as inefficient asset management, underutilization of assets, or declining sales relative to fixed asset investments.

It is essential for Hub Group, Inc. to closely monitor its fixed asset turnover ratio and identify the underlying reasons for the decrease to take appropriate actions to improve asset efficiency and overall profitability.