Hub Group Inc (HUBG)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,197,040	5,358,280	4,244,580	3,485,460	3,658,380
Total current assets	US$ in thousands	849,245	1,056,700	894,288	672,835	640,221
Total current liabilities	US$ in thousands	658,210	691,770	687,069	529,105	507,364
Working capital turnover		21.97	14.68	20.48	24.25	27.54

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,197,040K ÷ ($849,245K – $658,210K)
= 21.97

Hub Group, Inc.'s working capital turnover has shown variability over the past five years. The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate revenue. A higher ratio implies that the company is generating more revenue per dollar of working capital.

In 2023, the working capital turnover ratio was 22.00, indicating a significant improvement compared to the prior year. This suggests that Hub Group, Inc. was able to generate $22 in revenue for every dollar of working capital invested in the business.

In 2022, the ratio decreased to 14.63, reflecting a decline in efficiency compared to the previous year. This could imply that the company was not able to generate as much revenue relative to its working capital investment.

Similarly, in 2021, the working capital turnover ratio was 20.42, indicating an improvement compared to 2022 but still below the 2023 level. The ratio further improved in 2020 to 24.32, showing increased efficiency in generating revenue compared to the prior year.

The highest working capital turnover ratio in the past five years was seen in 2019 at 27.61, indicating that Hub Group, Inc. was highly efficient in utilizing its working capital to generate revenue during that year.

Overall, the trend in the working capital turnover ratio for Hub Group, Inc. has been fluctuating over the years, with ups and downs in efficiency. It is essential for the company to closely monitor this ratio to ensure optimal utilization of its working capital resources.