Hub Group Inc (HUBG)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — 93.37 184.94 413.73 286.47 — — — 1,822.88 43,409.91 2,109.95 3,519.01 2,537.29 1,870.83 4,682.50 5,107.56 5,580.47 691.85 3,512.90 23,154.37
Receivables turnover 7.38 7.07 7.83 7.41 7.84 6.78 6.32 6.00 6.19 6.36 7.02 6.99 6.81 6.22 7.62 7.81 8.19 8.62 8.95 9.06
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
Working capital turnover 21.96 10.55 12.20 11.95 14.64 18.85 12.60 15.65 20.45 16.58 18.19 20.41 24.27 16.30 20.07 14.49 27.55 32.95 34.59 45.84

Hub Group, Inc.'s activity ratios provide insight into the efficiency of its operations.

The receivables turnover ratio measures how efficiently the company is able to collect payments from customers. Hub Group's receivables turnover has been relatively stable over the periods provided, ranging from 6.31 to 7.84. A higher turnover ratio indicates that the company is collecting payments more quickly, which is generally favorable.

The payables turnover ratio reflects how quickly the company pays its suppliers. Hub Group's payables turnover has been consistently high, with values ranging from 8.65 to 12.59. A high payables turnover ratio suggests that the company is managing its payables effectively, potentially benefiting from favorable credit terms or efficient cash management.

The working capital turnover ratio measures how effectively the company is utilizing its working capital to generate sales. Hub Group's working capital turnover has varied significantly, with values ranging from 10.56 to 22.00. A higher turnover ratio indicates that the company is efficiently utilizing its working capital to drive sales, potentially leading to higher profitability.

Overall, Hub Group, Inc.'s activity ratios suggest that the company is managing its receivables and payables effectively, and its working capital turnover has been somewhat volatile but generally at levels that indicate efficient use of resources.

Average number of days

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
Days of inventory on hand (DOH) days — 3.91 1.97 0.88 1.27 — — — 0.20 0.01 0.17 0.10 0.14 0.20 0.08 0.07 0.07 0.53 0.10 0.02
Days of sales outstanding (DSO) days 49.49 51.63 46.60 49.27 46.57 53.85 57.77 60.82 58.95 57.42 51.98 52.20 53.57 58.71 47.88 46.71 44.55 42.36 40.78 40.29
Number of days of payables days 158.90 70.72 37.90 31.06 25.86 30.53 33.61 35.68 38.83 34.38 33.16 33.46 30.72 33.69 28.38 28.71 26.71 18.18 23.36 23.52

Days of inventory on hand (DOH) information is missing in the provided data for all quarters. Therefore, we cannot evaluate Hub Group, Inc.'s efficiency in managing its inventory levels over time.

Days of sales outstanding (DSO) decreased from 53.93 days in Q3 2022 to 52.42 days in Q4 2023. This indicates that the company took slightly less time to collect its accounts receivable, implying improved efficiency in collecting sales revenue.

Number of days of payables fluctuated between 28.98 days in Q2 2023 and 41.61 days in Q1 2022. A decrease in days of payables suggests that the company is paying its suppliers more quickly, which could be a strategic move to maintain relationships with vendors or take advantage of early payment discounts. Conversely, an increase might suggest cash flow management considerations.

Overall, the data on Days of Sales Outstanding (DSO) and Number of Days of Payables indicates that Hub Group, Inc. has been managing its accounts receivable and payable effectively, reflecting decent control over its working capital and possibly sustaining vendor relationships.

Long-term

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
Fixed asset turnover 5.30 5.70 6.17 6.69 6.82 7.04 7.07 6.70 6.22 5.93 5.97 5.56 5.20 5.38 5.26 5.34 5.52 5.74 5.83 6.12
Total asset turnover 1.43 1.54 1.73 1.80 1.90 1.93 1.88 1.81 1.74 1.71 1.73 1.66 1.66 1.66 1.71 1.70 1.84 1.98 1.97 2.10

The fixed asset turnover ratio for Hub Group, Inc. has shown a declining trend over the past eight quarters, decreasing from 6.81 in Q4 2022 to 5.31 in Q4 2023. This suggests that the company is generating less revenue for each dollar invested in fixed assets.

On the other hand, the total asset turnover ratio has also exhibited a downward trend, dropping from 1.90 in Q4 2022 to 1.43 in Q4 2023. This indicates that the company's efficiency in utilizing all its assets to generate sales has decreased over the quarters.

Overall, the declining trends in both fixed asset turnover and total asset turnover ratios may indicate inefficiencies in the company's asset utilization or changes in the business operations that affect its revenue generation capacity. It is essential for Hub Group, Inc. to closely monitor and address these declining trends to improve its long-term activity efficiency and profitability.