Hub Group Inc (HUBG)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	832,631	804,566	4,871,640	3,993,930	3,389,820
Payables	US$ in thousands	279,982	349,378	344,751	424,923	285,320
Payables turnover		2.97	2.30	14.13	9.40	11.88

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $832,631K ÷ $279,982K
= 2.97

The payables turnover ratio for Hub Group Inc has shown fluctuating trends over the past few years.

In December 31, 2020, the payables turnover ratio was 11.88, indicating that the company converted its accounts payable into purchases approximately 11.88 times during that period.

By December 31, 2021, the payables turnover ratio decreased to 9.40, which may suggest a longer payment cycle or potentially less efficient management of accounts payable.

Surprisingly, the payables turnover ratio significantly increased to 14.13 by December 31, 2022, suggesting the company may have improved its efficiency in managing its accounts payable during that year.

However, by December 31, 2023 and 2024, the payables turnover ratios dropped to 2.30 and 2.97, respectively. This sharp decline could signify challenges in managing payment cycles efficiently, potentially indicating longer payment terms or difficulties in controlling the accounts payable turnover.

Overall, the fluctuating payables turnover ratios highlight the variability in Hub Group Inc's ability to efficiently manage its accounts payable, signaling the need for consistent monitoring and potential improvements in managing working capital.