Hub Group Inc (HUBG)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	804,566	4,871,640	3,993,930	3,389,820	3,515,700
Payables	US$ in thousands	349,378	344,751	424,923	285,320	257,247
Payables turnover		2.30	14.13	9.40	11.88	13.67

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $804,566K ÷ $349,378K
= 2.30

Hub Group, Inc.'s payables turnover ratio has fluctuated over the past five years. In 2023, the payables turnover ratio was 8.65, indicating that the company paid its suppliers approximately 8.65 times during the year. This represents a decrease from 2022 when the ratio was 12.35, suggesting that the company took longer to pay its suppliers in comparison to the previous year.

The significant decline in 2023 could imply that Hub Group, Inc. extended its payment period, potentially indicating a weakening in the company's liquidity position or possibly renegotiated more favorable payment terms with its suppliers.

It's notable that in 2020 and 2019, the payables turnover ratio was 0.00. This could be due to incomplete or missing financial data for those years, which limits the analysis of Hub Group, Inc.'s payables turnover during those periods.

Overall, a lower payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could have implications for its liquidity and relationships with suppliers. Continued monitoring of this ratio will be essential to assess Hub Group, Inc.'s management of its accounts payable in the future.