Hub Group Inc (HUBG)

Working capital 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
Revenue (ttm)	US$ in thousands	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	3,660,550	3,778,159	3,798,353	4,056,790
Total current assets	US$ in thousands	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	640,221	559,597	586,924	575,391
Total current liabilities	US$ in thousands	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	507,364	444,925	477,119	486,888
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,195,418K ÷ ($849,245K – $658,210K)
= 21.96

The working capital turnover ratio for Hub Group, Inc. fluctuated over the past eight quarters, ranging from a low of 10.56 in Q3 2023 to a high of 22.00 in Q4 2023. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio generally suggests that the company is effectively managing its working capital to generate sales, while a lower ratio may indicate inefficiencies in the utilization of working capital.

In Q4 2023, Hub Group, Inc. achieved a significantly higher working capital turnover ratio of 22.00, signaling a strong ability to generate sales revenue relative to its working capital level. This may imply efficient working capital management practices during that quarter. However, in Q3 2023, the ratio dropped to 10.56, reflecting a possible decrease in efficiency in converting working capital into sales.

Over the eight quarters, the company demonstrated varying levels of efficiency in its working capital turnover, with fluctuations indicating potential changes in the company's operations or financial management. Further analysis of the company's working capital components and business operations would provide deeper insights into the factors driving these fluctuations in the working capital turnover ratio.