Hub Group Inc (HUBG)

Payables 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
Cost of revenue (ttm)	US$ in thousands	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	3,515,697	3,623,929	3,646,390	3,913,088
Payables	US$ in thousands	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	257,247	180,490	233,399	252,185
Payables turnover		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	13.67	20.08	15.62	15.52

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $802,554K ÷ $349,378K
= 2.30

Hub Group, Inc.'s payables turnover has shown some fluctuation over the past eight quarters. The payables turnover ratio measures how efficiently the company is managing its accounts payable by calculating the number of times a company pays off its average accounts payable balance within a specific period.

In Q4 2023, the payables turnover stood at 8.65, indicating that the company took approximately 8.65 times to pay off its accounts payable during that quarter. This was a decrease compared to the previous quarter, where the ratio was 9.66. The Q4 2023 ratio was also lower than the same period in the previous year, Q4 2022, where the ratio was 12.35.

Overall, the payables turnover ratio has been relatively stable, with some variations from quarter to quarter. The ratios in Q2 and Q3 of 2023 were notably higher at 12.59 and 10.31, respectively, indicating a more efficient management of accounts payable during those periods.

It is essential for the company to closely monitor its payables turnover ratio to ensure efficient management of its working capital and maintain good relationships with its suppliers.