Hub Group Inc (HUBG)

Payables turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 832,632 824,028 817,734 814,195 802,554 1,782,831 2,821,787 3,881,641 4,866,280 4,823,370 4,600,930 4,281,482 3,993,924 3,776,662 3,652,327 3,466,220 3,389,818 3,330,077 3,315,211 3,437,388
Payables US$ in thousands 279,982 305,838 325,569 320,919 349,378 345,451 293,005 330,260 344,751 403,471 423,608 418,509 424,923 355,714 331,836 317,798 285,320 307,361 257,752 270,384
Payables turnover 2.97 2.69 2.51 2.54 2.30 5.16 9.63 11.75 14.12 11.95 10.86 10.23 9.40 10.62 11.01 10.91 11.88 10.83 12.86 12.71

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $832,632K ÷ $279,982K
= 2.97

The payables turnover of Hub Group Inc has exhibited fluctuating trends over the past few years. The ratio peaked at 14.12 on December 31, 2022, indicating that the company was able to efficiently manage its payments to suppliers during that period. Following the peak, the payables turnover gradually declined through March 31, 2024, reaching a low of 2.30. This significant decrease suggests that the company took longer to pay off its accounts payable during this period.

It is important to note that a higher payables turnover ratio generally indicates that a company is managing its payables effectively and may be benefiting from favorable credit terms or strong bargaining power with suppliers. Conversely, a lower payables turnover ratio may imply that a company is taking longer to settle its payables, which could potentially strain cash flow and supplier relationships.

Overall, the varying payables turnover ratios of Hub Group Inc reflect changes in the company's payment practices and its ability to maintain healthy relationships with its suppliers. Monitoring this ratio can provide valuable insights into the efficiency of the company's working capital management and financial health.