Hub Group Inc (HUBG)

Based on the provided data, Hub Group Inc's liquidity ratios show a relatively stable trend over the years.

1. Current Ratio:
- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has increased from 1.27 in 2020 to 1.33 in 2024. This indicates that the company has improved its liquidity position and is better equipped to meet its short-term obligations.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, excludes inventory from current assets to provide a more conservative measure of liquidity. Hub Group Inc's quick ratio has fluctuated slightly, with a decrease from 1.25 in 2020 to 1.13 in 2024. Despite the fluctuations, the company has generally maintained a healthy quick ratio above 1, indicating its ability to meet short-term obligations without relying heavily on inventory.

3. Cash Ratio:
- The cash ratio, which is the strictest measure of liquidity, focuses only on cash and cash equivalents to cover current liabilities. Hub Group Inc's cash ratio has shown some variations, with a significant increase from 0.23 in 2021 to 0.41 in 2022, followed by a decline to 0.17 in 2024. Although the cash ratio has decreased in the most recent year, the company still maintains a reasonable level of cash to meet short-term obligations.

Overall, based on these liquidity ratios, Hub Group Inc appears to have a solid liquidity position, with the ability to cover its short-term liabilities using its current assets and cash reserves. However, management should continue to monitor these ratios to ensure sustainable liquidity levels for the company's ongoing operations.

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Additional liquidity measure

The cash conversion cycle of Hub Group Inc has shown varying trends over the past five years. In December 2020, the company's cash conversion cycle was 23.03 days, indicating that it took approximately 23 days for the company to convert its investments in inventory and other resources back into cash.

By December 2021, the cash conversion cycle improved to 20.22 days, suggesting that the company was able to more efficiently manage its working capital and convert assets into cash quicker. However, by December 2022, the cash conversion cycle increased slightly to 21.87 days, indicating a slight slowdown in the company's cash conversion efficiency.

In December 2023, the cash conversion cycle took a significant turn, dropping to -109.03 days. A negative cash conversion cycle implies that the company was able to convert its investments into cash before actually paying for them, which can be a positive sign of efficient working capital management.

By December 2024, the cash conversion cycle improved further to -71.45 days, indicating continued efficiency in managing working capital and generating cash flow.

Overall, the trend in Hub Group Inc's cash conversion cycle shows fluctuations, with improvements in efficiency in some years and a significant improvement leading to a negative cycle in others. These variations may be attributed to changes in the company's operating cycle, payment terms with suppliers, inventory management, and overall working capital efficiency.