Hub Group Inc (HUBG)

Working capital 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
Revenue (ttm) US$ in thousands 3,944,208 3,952,977 3,987,385 4,038,240 4,195,418 4,499,370 4,831,330 5,194,040 5,341,940 5,319,660 5,039,710 4,619,111 4,237,513 3,925,073 3,774,338 3,571,114 3,487,825 3,435,776 3,423,820 3,566,056
Total current assets US$ in thousands 768,329 805,396 836,707 827,958 849,245 1,082,810 989,907 1,072,340 1,056,700 1,022,940 1,118,670 1,002,660 894,288 881,007 799,716 755,888 672,835 753,452 666,710 748,861
Total current liabilities US$ in thousands 579,481 617,913 635,154 648,600 658,210 656,288 593,737 637,707 691,770 740,664 718,645 707,579 687,069 644,256 592,230 580,941 529,105 542,728 496,101 502,808
Working capital turnover 20.89 21.08 19.78 22.51 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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,944,208K ÷ ($768,329K – $579,481K)
= 20.89

The working capital turnover ratio for Hub Group Inc fluctuated over the reported periods. The ratio indicates how efficiently the company utilizes its working capital to generate sales revenue. A higher ratio suggests better efficiency in using working capital.

Based on the data provided, we observe that the working capital turnover ratio ranged from a low of 10.55 to a high of 24.27 during the reporting period. The trend shows some variability, with peaks and troughs throughout the quarters.

Specifically, the ratio peaked at 24.27 on December 31, 2020, indicating a strong utilization of working capital during that period. However, it decreased to 10.55 on September 30, 2023, reflecting a potential inefficiency in working capital management during that quarter.

Overall, the working capital turnover ratio for Hub Group Inc demonstrates some level of inconsistency, suggesting fluctuations in the company's ability to efficiently convert working capital into sales revenue over the reported periods. Further analysis and comparison with industry benchmarks may provide additional insights into the company's working capital management efficiency.