Hub Group Inc (HUBG)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		2.30	14.13	9.40	11.88	13.67
Number of days of payables	days	158.50	25.83	38.83	30.72	26.71

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 2.30
= 158.50

Based on the data provided, Hub Group, Inc.'s number of days of payables has fluctuated over the past five years. In 2023, the company had 42.22 days of payables, which increased from 29.55 days in 2022 and decreased from 43.95 days in 2021. The company did not report this ratio for the years 2020 and 2019.

The number of days of payables indicates the average number of days it takes for the company to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to pay its bills, which can be beneficial as it allows for better cash flow management. However, excessively high payables period may strain supplier relationships.

Hub Group, Inc.'s increasing number of days of payables from 2022 to 2023 may suggest a change in the company's payment policies or ability to negotiate favorable payment terms with suppliers. It is essential for investors and stakeholders to monitor this ratio to assess the company's liquidity, working capital management, and relationships with its suppliers.